topic Re: What to do next in Credit Cards

What to do next

Anonymous — Tue, 07 Aug 2018 21:34:31 GMT

So last month I kinda went on an app spree. I started off only having 2 credit cards. A capital one platinum and a credit one Mastercard. I had just begun to really build my credit after having those cards probably 2 years each when I decided to get on credit karma to really investigate my credit. Got my utilization down to under 20 % and my score rose from a 620 to 736 in about 6 months of tracking and paying the balances. Once I saw that shiny new score the spree started. I applied for and was approved for the discover it card the citi double cash rewards card the amex cash magnet card the chase freedom and upgraded my capital one to the quicksilver all in the same day. So what's next ? It's been about a month since then and I need a goal.

Re: What to do next

Anonymous — Tue, 07 Aug 2018 21:58:12 GMT

Garden. Regain ground lost to inquiries and new accounts. The 800 club awaits for those who are patient.

Re: What to do next

HeavenOhio — Tue, 07 Aug 2018 21:59:51 GMT

Welcome, @Anonymous.

Your next steps will be to garden (not apply for anything) for at least a year and to close Credit One. You have some nice products that you can nurture during that time.

While you're gardening, you're still allowed to ask for credit limit increases as long as they're soft pulls. That'll be the case for sure with AMEX, Capital One, and Discover. It may or may not be the case with Citi.

With AMEX, request three times your current limit once your account reaches 61 days old. For more information, read the first few pages and the last few pages of this long thread: The Definitive Amex 3X CLI Guide.

With Discover, request a CLI (credit limit increase) after three statements. You never know what they might do, so just go with the flow. If you're denied, there's no timetable before you're allowed to request again, but I'd wait a month or so.

Capital One will allow you to request an increase if your limit hasn't been increased within the past six months. If you're denied, there's no waiting period before you can ask again. If you're offered an increase that you don't feel is enough, you can decline the offer without kicking in a waiting period.

Virtually no lenders use the VantageScores provided by Credit Karma. Instead they look at some flavor of FICO. So at some point, you're going to want to start tracking FICO scores. AMEX will give you a monthly Experian FICO8 score within a few weeks. Discover will give you a TransUnion FICO8 from within your account. Additionally, you can sign up for their Credit Scorecard for an Experian FICO8. (Discover's Credit Scorecard is available to cardholders and non-cardholders alike.) I believe that you'll also get some flavor of FICO with your Citi card, but I'm not sure which one.

Credit Karma isn't worthless, however, as they do offer nice TransUnion and Equifax credit reports along with alerts. Capital One and Chase also offer worthless VantageScores, but Capital One does include a nice TransUnion report.

Re: What to do next

Anonymous — Tue, 07 Aug 2018 22:03:52 GMT

I probably should. My score did dip to a 714 after all the accounts showed on my report

Re: What to do next

Anonymous — Tue, 07 Aug 2018 22:11:32 GMT

I am aware of all the differences in the scores. I have a bad habit of checking all my credit card apps every day hoping there is an update on my score. All but citi have their scores they give me. I was just feeling the itch to apply

Re: What to do next

Anonymous — Tue, 07 Aug 2018 22:18:12 GMT

Good work, just focus on building the relationships with your new credit providors. I would focus on building a good relationship with Amex. Discover is also pretty easy to get a good CLI from as long as you are consistant and don't run the card up too much. I also got a Citi DC, there is a bunch of information on this forum on how to build a good relationship with them as well as with Amex and Discover. Grats.

Re: What to do next

Anonymous — Tue, 07 Aug 2018 22:24:35 GMT

I agree with the previous posts: Payoff and close the credit one card and head to the garden.

One more suggestion: The Citi Double cash card gives you 2% cashback and the AmEx Cash Magent only 1.5%. So in a few months (after you received the signup bonus) I would product change the Cash Magnet to the AmEx Blue Cash Everyday. It will give you 3% for groceries. (But if you spend more than $265 per month on groceries you might product change to the Blue Cash Preferred instead. It has a $95 annual fee and gives you 6% for groceries).

Re: What to do next

HeavenOhio — Tue, 07 Aug 2018 22:51:26 GMT

Good suggestion, @Anonymous. I think at this point, @Anonymous should first meet the Magnet sign-up bonus. After that, most 2% spending should go to the Discover card in order to maximize its year-end bonus.

The DC can more or less lie in wait. But I'd still give it some action every month. And for certain purchases, this may be the best card due to its price protection feature.

Re: What to do next

Anonymous — Tue, 07 Aug 2018 22:59:54 GMT

If I changed would I have to wait an additional 61 days to get the cli?

Re: What to do next

HeavenOhio — Tue, 07 Aug 2018 23:06:58 GMT

Product-changes (PCs) won't change your CLI status.

Re: What to do next

Felony_Phil — Tue, 07 Aug 2018 23:29:37 GMT

Depends on which Discover you have, look at the % and be mindful of it the first year. Everything on that Discover will net you a minimum of 2% on everything. You should also see an increase with Discover after the 3rd statement, provided your payment history is flawless.

With Amex, personally, wait until the 2nd statement. Yes you can request an increase at 61 days but you don't know when they did their random soft pull to which they use to determine increases. I suspect you'd have a better chance at an increase a couple days after 2nd statement.