topic Re: Question re AA in Credit Cards

Question re AA

CAS2019 — Thu, 17 Jan 2019 17:20:23 GMT

Hi! After reading several threads re multiple inquires/cc sprees, I have become concerned with my own actions. I needed to build my credit in preparation for a mortgage, as I didn’t have any FICO scores.

At the advice of the LO, I applied for a secured Cap1 card for $300 April 2018, and eventually I received a CL increase to $500. In August I helped purchase a car for my daughter, and was approved for a $5000 car loan (put down a $10,000 down payment). At the end of August, I applied for a TJ Maxx (Synchony) store card, the CL was $500. The loan officer I was working with told me I needed to get a higher limit bank card. I have to admit, I was actually frozen as I was afraid I would be denied. Mid October, I was on Amazon and got a pop up for their cc. I went ahead and applied but (at the time) thought I was denied. Three days later, I had decided I would try for the Chase Freedom card. Again, I received wording that I thought I was denied, so I called Chase (I do all my banking with them) and asked what I needed to do to become approved. I explained that I was working with my branch’s LO, and she was guiding me. I was transferred to another person, she asked me a couple of questions and approved for the Chase Amazon Prime VISA and Chase Freedom—both cards have a CL of $5400 each.

By December, the LO told me I was ready to apply for the loan. I just closed escrow last Friday. The car loan was paid off (one of the requirements from u/w to approve the mortgage). I don’t like the CU the car loan has been with, so, I decided that as soon as the car loan PIF is posted, I am going to close the account and move my $$ to (and in preparation) opened an account with Navy Fed since there is a branch less than a mile from me. I did this the day I closed escrow. The rep at the bank (NFCU) suggested I apply for one of their cards, which I did (it’s their cash back VISA), and was given a $1000 CL. On Monday (Jan 14), I applied for a Lowe’s store card (Synchrony) as I have many repairs that need to be made (fortunately, all minor issues), and was approved for $2000.

I am now done with applying, and I am concerned that because I have such a short credit history, and many inquiries within 9 mos., it may come back to bite me. My CL (in the scheme of things) are low, but for me, is perfect. All of my adult life I have paid in cash anyway, so I’m used to living within my means and don’t plan to change. I am retired and my annuity is $48000 a year. Do I have reason to be concerned? I don’t want any of my limits to be reduced—especially with Chase. Oh, and I forgot to mention, I pay all of my cards in full and have them all set up for autopay, and utilization averages around 2%.

Thanks so so much for any advice!!!

Re: Question re AA

K-in-Boston — Thu, 17 Jan 2019 17:19:32 GMT

I would probably just cool it for a while. Use the Chase cards normally and pay them in full each month, and you should be fine. The other lenders you should be fine with. Also, congratulations on the home!

Re: Question re AA

Anonymous — Thu, 17 Jan 2019 17:21:40 GMT

You should be fine, no sense in worrying about what's out of your control, what's done is done. All you can do is stay out of the radar screen, lay low and stay in the garden, continue to PIF and not carrying large balances to raise alarms and trigger reviews.

Re: Question re AA

CAS2019 — Thu, 17 Jan 2019 17:23:49 GMT

@K-in-Boston wrote:
I would probably just cool it for a while. Use the Chase cards normally and pay them in full each month, and you should be fine. The other lenders you should be fine with. Also, congratulations on the home!

Oh, a big thank you, K in Boston. I have been stressing so much over the last couple of days (after reading posts of AA’s), you’ve given me a sense of relief.

I actually won’t be applying for anything for at least a year. I have everything I need.

Re: Question re AA

CAS2019 — Thu, 17 Jan 2019 17:32:11 GMT

Thanks, OldMan. I ordered a dishwasher from Costco this past Sunday, and actually called Chase (since this was a charge much higher than I’ve made since the issuance of the card) on Monday morning. It did post this morning (finally), and I paid it in full.

BTW, love your witty responses to posts made by others.

Re: Question re AA

FinStar — Thu, 17 Jan 2019 17:35:26 GMT

Some great advice given OP. Also, while some of the AA posts you may have read, different variables come into play whenever AA happens. It's all driven by internal algorithms.

Also, let's assume that if AA were to happen, there's no need to stress out about it. It can be mitigated. So, just as mentioned above and given your relatively short history, just fly below the radar, don't spike your utilization, make on-time payments, and refrain from any other apps for a while.

Re: Question re AA

Anonymous — Thu, 17 Jan 2019 17:39:23 GMT

@CAS2019 wrote:

Thanks, OldMan. I ordered a dishwasher from Costco this past Sunday, and actually called Chase (since this was a charge much higher than I’ve made since the issuance of the card) on Monday morning. It did post this morning (finally), and I paid it in full.

BTW, love your witty responses to posts made by others.

Glad you're entertained.

Re: Question re AA

CAS2019 — Thu, 17 Jan 2019 17:47:01 GMT

@FinStar wrote:
Some great advice given OP. Also, while some of the AA posts you may have read, different variables come into play whenever AA happens. It's all driven by internal algorithms.

Also, let's assume that if AA were to happen, there's no need to stress out about it. It can be mitigated. So, just as mentioned above and given your relatively short history, just fly below the radar, don't spike your utilization, make on-time payments, and refrain from any other apps for a while.

Thanks! Advice will be well taken!! I was worried (the most) with the purchase of the dishwasher. It ended up being 16% utilization on the card (Freedom); I wanted to take advantage of the cash back from Costco as well as the cc points, otherwise, I would have used my debit card.

Re: Question re AA

Anonymous — Thu, 17 Jan 2019 18:03:19 GMT

Laying low doesn't mean you have to tip toe at all times, letting 16% report on a card is fine as long as you PIF by due date, especially after giving them a heads up for the large purchase. Credit cards are there to benefit you so use it, but use it responsibly.

Re: Question re AA

xaximus — Thu, 17 Jan 2019 19:03:02 GMT

@Anonymous wrote:
Laying low doesn't mean you have to tip toe at all times, letting 16% report on a card is fine as long as you PIF by due date, especially after giving them a heads up for the large purchase. Credit cards are there to benefit you so use it, but use it responsibly.

Great advice, Yoda!

Re: Question re AA

Cred4All — Thu, 17 Jan 2019 21:03:17 GMT

@Anonymous wrote:
Laying low doesn't mean you have to tip toe at all times, letting 16% report on a card is fine as long as you PIF by due date, especially after giving them a heads up for the large purchase. Credit cards are there to benefit you so use it, but use it responsibly.

I second that statement as well. Use common sense with any card and more than likely, things will always work out for you. I utilized my Chase Sappphire Reserve on a larger than normal purchase for $6,000 (Vacation payment) and exercised the judgement to call them and advise them before doing so. Simple common courtesy and common sense go a long way with credit... better to avoid a headache before creating one . I also agree youll most likely be fine, enjoy the garden time.

Re: Question re AA

CAS2019 — Thu, 17 Jan 2019 22:58:06 GMT

Thank you all! I am sincerely appreciative, and am sighing a sense of relief. As I previously mentioned, I am happy with what I currently have. I’m a woman who’s (very) low maintenance, and have no desire to go out and spend money I don’t have. I’ll certainly enjoy my gardening!

Re: Question re AA

Pikaboo-icu — Thu, 17 Jan 2019 23:12:34 GMT

@CAS2019 wrote:
Thank you all! I am sincerely appreciative, and am sighing a sense of relief. As I previously mentioned, I am happy with what I currently have. I’m a woman who’s (very) low maintenance, and have no desire to go out and spend money I don’t have. I’ll certainly enjoy my gardening!

Now now...

It's not just women that go on spending sprees..

I'm also a woman and it's my husband that's the shop-a-holic!

Auto part stores, home improvement, heck he spent $50 on two carved plaques outside a Walmart!! "Twas for charity so ok but sheesh! I guess he's never heard of Etsy. LOL

Just sayin'

Re: Question re AA

CAS2019 — Fri, 18 Jan 2019 00:18:15 GMT

@Pikaboo-icu wrote:
@CAS2019 wrote:
Thank you all! I am sincerely appreciative, and am sighing a sense of relief. As I previously mentioned, I am happy with what I currently have. I’m a woman who’s (very) low maintenance, and have no desire to go out and spend money I don’t have. I’ll certainly enjoy my gardening!
Now now...
It's not just women that go on spending sprees..

I'm also a woman and it's my husband that's the shop-a-holic!
Auto part stores, home improvement, heck he spent $50 on two carved plaques outside a Walmart!! "Twas for charity so ok but sheesh! I guess he's never heard of Etsy. LOL

Just sayin'

Ahahaha! Yes, you are so right! I was (at one time) married to one of those...there are benefits to being single! I’m certainly not critical of anyone who likes to spend (if they have the money). I’m just a miser! 😉

Re: Question re AA

Anonymous — Fri, 18 Jan 2019 01:14:23 GMT

@Cred4All wrote:

I second that statement as well. Use common sense with any card and more than likely, things will always work out for you. I utilized my Chase Sappphire Reserve on a larger than normal purchase for $6,000 (Vacation payment) and exercised the judgement to call them and advise them before doing so. Simple common courtesy and common sense go a long way with credit... better to avoid a headache before creating one .

I personally never call, as I am unconvinced it offers any advantage. Common sense might say that doing so should reduce fraud alerts, but we've all had those happen on tiny amounts as well....

Re: Question re AA

Anonymous — Fri, 18 Jan 2019 01:48:56 GMT

@Anonymous wrote:
@Cred4All wrote:

I second that statement as well. Use common sense with any card and more than likely, things will always work out for you. I utilized my Chase Sappphire Reserve on a larger than normal purchase for $6,000 (Vacation payment) and exercised the judgement to call them and advise them before doing so. Simple common courtesy and common sense go a long way with credit... better to avoid a headache before creating one .
I personally never call, as I am unconvinced it offers any advantage. Common sense might say that doing so should reduce fraud alerts, but we've all had those happen on tiny amounts as well....

Yeah with credit unions it might make a difference but big bank doesn’t care. I called Capital One before making a big purchase one time and it still triggered a denial and I had to call to get them to reactivate my card and run the transaction again. Good thing it was an online transaction because if that happened in the store, I would have been furious.

Re: Question re AA

800FICOGoal — Sat, 19 Jan 2019 09:40:12 GMT

@Pikaboo-icu wrote:
I'm also a woman and it's my husband that's the shop-a-holic!
Auto part stores, home improvement...

I never met him, but he sounds cool.

Re: Question re AA

Pikaboo-icu — Sat, 19 Jan 2019 20:34:33 GMT

@800FICOGoal wrote:
@Pikaboo-icu wrote:
I'm also a woman and it's my husband that's the shop-a-holic!
Auto part stores, home improvement...

I never met him, but he sounds cool.

LOL

Well tune into Discovery Investigation channel, the show "Deadly Women" One of these days we'll be in an episode: "Wife kills husband for tanking her credit score"

He actually teased me about this last night.

Re: Question re AA

SouthJamaica — Sat, 19 Jan 2019 20:51:12 GMT

@CAS2019 wrote:
Hi! After reading several threads re multiple inquires/cc sprees, I have become concerned with my own actions. I needed to build my credit in preparation for a mortgage, as I didn’t have any FICO scores.

At the advice of the LO, I applied for a secured Cap1 card for $300 April 2018, and eventually I received a CL increase to $500. In August I helped purchase a car for my daughter, and was approved for a $5000 car loan (put down a $10,000 down payment). At the end of August, I applied for a TJ Maxx (Synchony) store card, the CL was $500. The loan officer I was working with told me I needed to get a higher limit bank card. I have to admit, I was actually frozen as I was afraid I would be denied. Mid October, I was on Amazon and got a pop up for their cc. I went ahead and applied but (at the time) thought I was denied. Three days later, I had decided I would try for the Chase Freedom card. Again, I received wording that I thought I was denied, so I called Chase (I do all my banking with them) and asked what I needed to do to become approved. I explained that I was working with my branch’s LO, and she was guiding me. I was transferred to another person, she asked me a couple of questions and approved for the Chase Amazon Prime VISA and Chase Freedom—both cards have a CL of $5400 each.

By December, the LO told me I was ready to apply for the loan. I just closed escrow last Friday. The car loan was paid off (one of the requirements from u/w to approve the mortgage). I don’t like the CU the car loan has been with, so, I decided that as soon as the car loan PIF is posted, I am going to close the account and move my $$ to (and in preparation) opened an account with Navy Fed since there is a branch less than a mile from me. I did this the day I closed escrow. The rep at the bank (NFCU) suggested I apply for one of their cards, which I did (it’s their cash back VISA), and was given a $1000 CL. On Monday (Jan 14), I applied for a Lowe’s store card (Synchrony) as I have many repairs that need to be made (fortunately, all minor issues), and was approved for $2000.

I am now done with applying, and I am concerned that because I have such a short credit history, and many inquiries within 9 mos., it may come back to bite me. My CL (in the scheme of things) are low, but for me, is perfect. All of my adult life I have paid in cash anyway, so I’m used to living within my means and don’t plan to change. I am retired and my annuity is $48000 a year. Do I have reason to be concerned? I don’t want any of my limits to be reduced—especially with Chase. Oh, and I forgot to mention, I pay all of my cards in full and have them all set up for autopay, and utilization averages around 2%.

Thanks so so much for any advice!!!

Yes you have reason to be concerned but (a) it's highly unlikely that there would be adverse action in your case, and (b) what difference does it make if you have reason to be concerned or not... what's done is done.

Just make sure you stop applying for stuff. It can be addictive.

Re: Question re AA

CAS2019 — Sun, 20 Jan 2019 05:34:30 GMT

@SouthJamaica wrote:
@CAS2019 wrote:
Hi! After reading several threads re multiple inquires/cc sprees, I have become concerned with my own actions. I needed to build my credit in preparation for a mortgage, as I didn’t have any FICO scores.

At the advice of the LO, I applied for a secured Cap1 card for $300 April 2018, and eventually I received a CL increase to $500. In August I helped purchase a car for my daughter, and was approved for a $5000 car loan (put down a $10,000 down payment). At the end of August, I applied for a TJ Maxx (Synchony) store card, the CL was $500. The loan officer I was working with told me I needed to get a higher limit bank card. I have to admit, I was actually frozen as I was afraid I would be denied. Mid October, I was on Amazon and got a pop up for their cc. I went ahead and applied but (at the time) thought I was denied. Three days later, I had decided I would try for the Chase Freedom card. Again, I received wording that I thought I was denied, so I called Chase (I do all my banking with them) and asked what I needed to do to become approved. I explained that I was working with my branch’s LO, and she was guiding me. I was transferred to another person, she asked me a couple of questions and approved for the Chase Amazon Prime VISA and Chase Freedom—both cards have a CL of $5400 each.

By December, the LO told me I was ready to apply for the loan. I just closed escrow last Friday. The car loan was paid off (one of the requirements from u/w to approve the mortgage). I don’t like the CU the car loan has been with, so, I decided that as soon as the car loan PIF is posted, I am going to close the account and move my $$ to (and in preparation) opened an account with Navy Fed since there is a branch less than a mile from me. I did this the day I closed escrow. The rep at the bank (NFCU) suggested I apply for one of their cards, which I did (it’s their cash back VISA), and was given a $1000 CL. On Monday (Jan 14), I applied for a Lowe’s store card (Synchrony) as I have many repairs that need to be made (fortunately, all minor issues), and was approved for $2000.

I am now done with applying, and I am concerned that because I have such a short credit history, and many inquiries within 9 mos., it may come back to bite me. My CL (in the scheme of things) are low, but for me, is perfect. All of my adult life I have paid in cash anyway, so I’m used to living within my means and don’t plan to change. I am retired and my annuity is $48000 a year. Do I have reason to be concerned? I don’t want any of my limits to be reduced—especially with Chase. Oh, and I forgot to mention, I pay all of my cards in full and have them all set up for autopay, and utilization averages around 2%.

Thanks so so much for any advice!!!
Yes you have reason to be concerned but (a) it's highly unlikely that there would be adverse action in your case, and (b) what difference does it make if you have reason to be concerned or not... what's done is done.

Just make sure you stop applying for stuff. It can be addictive.

Thanks! Fortunately, I won’t have to worry about that (addiction to cc apps). With the exception of the TJMaxx card, I only applied for the cards I know I will use and need.