topic Re: What should be my next step? in Credit Cards

What should be my next step?

Anonymous — Sat, 13 Apr 2019 15:53:59 GMT

Hi,

I currently have one credit card, a Discover Secured (been unsecured for 1.5 years), which I’ve just passed the 2-year mark of having this month. It currently has a 4,000 limit.

There are a few cards I’d like to get, but since I don’t need any of them, my priority is to do the smartest thing credit wise. Hence me being here asking you smart peeps!

My current scores (according to Credit Karma):
Transunion: 741 (1 hit — from a year ago)
Equifax: 754 (0 hits)

My FICOs:

Transunion FICO: 776

Experian FICO: 765

The cards I’m interested in:

- Chase Freedom Unlimited - I applied for this March 2018 and was denied for insufficient credit history - which is where the hit came from.
- Amazon Prime Rewards - Frequently shop here
- Target Red - Also frequently shop here

I’m also interested in the Amex Blue Cash for groceries, Amex offers, and diversifying. But I’d consider that a future project—unless you think I should bump it up.

Note, I’m a relatively new US citizen which is why my credit history is very new.

Thanks!

Re: What should be my next step?

Anonymous — Sat, 13 Apr 2019 14:51:09 GMT

Get your fico scores from either Experian or myfico.com. Look over your report.

Is the discover card going to graduate soon?

That's good that you're able to distinguish wanting credit and needing credit.

I'd check preapprovals for both chase and Amex and see if anything pops up. You may also want to try capital one as well

Re: What should be my next step?

KLEXH25 — Sat, 13 Apr 2019 14:58:38 GMT

Hi Art21, welcome! Is there any chance you can get the Discover card unsecured? Also, everyone here will tell you to get your true Fico scores to get a better idea of where you’re at. You can purchase a 3B report here or get them elsewhere (some banks and cards offer them for free). Credit Karma uses a different score model that lenders don’t use so your actual scores could be different. I think a Experian might still offer a free 10-day trial.

With that said, I would go to the free prequalification sites for Capital One, AMEX, Discover, and Citibank to see if you get any card offers first without a hard pull. Chase likes thicker files so it’s not surprising they declined. Credit Unions also have some good credit card offers, but you have to join first and that’s a hard pull too.

I’d suggest to try and get two more cards so that you have three total. Use them, pay in full every month, and let them age.

Re: What should be my next step?

Anonymous — Sat, 13 Apr 2019 16:17:54 GMT

Hi!

Thank you both for your quick and helpful replies.

Sorry, I should've stated that the Discover card is now unsecured. I acquired it secured, but they unsecured it 7-months into me owning it. So it's been almost 1.5 years of unsecured. (They've also given me 2X CLI since owning, so that's a nice plus.)

My FICOs:

Transunion FICO: 776

Experian FICO: 765

I reguarly get a prequalified mail from Capital One for their Platinum Mastercard. I've been getting that for over a year now but I was hoping for something with some more benefits. (It appears to offer less than my Discover.)

Edited to include:

I checked out the prequalified sites for the major guys and here's what I got:

Discover: Discover IT Cash Back and the Discover IT Chrome.

Amex: EveryDay Credit Card, Gold Card, Green Card.

Citi: No prequalified offers

CapitalOne: Savor, Quicksilver Rewards, SavorOne (I do have a savings account with Capital One, if they use this info when prequalifying. Strange that they always send me mail for the Platinum vs what they're showing now.)

Re: What should be my next step?

gdale6 — Sat, 13 Apr 2019 17:40:02 GMT

With more time on that Discover under your belt I would go for the one you would use the most for your spending from Chase and your choice of Amex to fit your spend and then let them age 6 months before going for more that fit your spending patterns. Welcome to the board

Re: What should be my next step?

Anonymous — Sun, 14 Apr 2019 00:12:47 GMT

Thanks, gdale6!

Just so I'm clear, you're recommending that I remain with my current Discover for the time being (any thoughts as to how long?) and later apply for other cards in the order you stated?

Re: What should be my next step?

KLEXH25 — Sun, 14 Apr 2019 01:27:14 GMT

Ok, those scores are great! Nice job. I think the only thing that’s holding you back from getting more prime cards like Chase is that you only have one card. I think if you get a couple of more cards, age them, and use responsibly, you’ll qualify for those bigger cards in no time. From your prequals, I’d suggest the AMEX Every Day and maybe the Savor or QuickSilver, since you already have Discover. Don’t bother with the CapOne Platinum since the others are better cards and offer rewards. Whatever you decide, try to go for ones with no annual fee, especially if you won’t be using your cards heavily.

If you shop at Target like me, try their debit card. You get all of the same discounts and benefits without the hard pull. Plus, they can sometimes give low limits, which makes it hard to use in my opinion.

Let’s us know if you have anymore questions. I’m happy to help. Make sure to let us know what you decide and get approved for!

Re: What should be my next step?

Anonymous — Sun, 14 Apr 2019 13:47:37 GMT

Thanks, KLEXH25!

I think the QuickSilver will be a great card to apply for—it appears similar to the Chase in benefits. I'm not too certain on the AMEX Everyday; I'd like to go for the Blue Everyday or Cash Magnet instead. (I prefer cashback vs points/miles.) Even though I didn't prequalify, do you think I'd stand a decent chance applying for either of those?

Similarly, after you recommended I check for the FICOs, I note that they're both stating 1 years 11 months on the Discover, as opposed to the 2 years. Is there any benefit waiting a few more weeks for it to roll over to 2 years before I apply for the QuickSilver?

Thanks so much for your help!

Re: What should be my next step?

KLEXH25 — Sun, 14 Apr 2019 14:31:16 GMT

I don’t suppose it hurts to wait until it reports as 2 years old, but I’m not sure what the benefit would be (if any) since you just have the one card. I say apply for the cards you want, so go for Quicksilver first at least. You might still be able to get one of the other AMEX cards you like, but I’m not familiar enough to know if you’ll get it. I think there’s a chance you will (even if it’s not prequalified), but I’d let someone else chime in on that.

Re: What should be my next step?

Anonymous — Sun, 14 Apr 2019 18:53:22 GMT

Sounds good!

The one thing giving me pause on the QuickSilver application is this line at the top under 'Excellent Credit': "I've had a loan or credit card for 3 years or more with a credit limit above $5,000."

Since I'm virtually at 2 years, and my credit limit is 4000, I'm under this 'bounday'. Is this a hard limit or do they tend to look at the whole picture? Similarly, I noted that CreditKarma (I'm not sure how much faith I should put in them), rate my approval as 'Poor' for this card, however, as you know, Capital One recommended it when I checked for prequalified.

Sorry for all the q's. IIRC Capital One hit all 3 bureaus so I'd really like to not screw this one up.

Re: What should be my next step?

KLEXH25 — Sun, 14 Apr 2019 21:09:24 GMT

That is interesting. I just got the Quicksilver because I did an upgrade (product change) from my Platinum MasterCard to the Quicksilver, so I did not have to do an application. Does it say that you are required to have excellent credit, OR is it asking you to rate your credit based on several options they give you? I would be concerned as well, considering they pull all three. Unfortunately, I don't have much input here.

From personal experience, I have found that having a young, thin file with only 1 or 2 credit cards limits your options. Lenders are conservative at first, but if they see multiple cards with good history and limits, more options begin to open up to you. Since you only have one card (despite the 2 year history), there is always a chance you may not get the cards you want right away. CapitalOne opened the door for me by giving me my first card. Discover was also nice to me and was my second. Both cards are known to like thin files. I hear AMEX is also amicable to thin files (which is why they will probably be my next app). I tend to play it safe and go for what I will likely be accepted for, but I also have a lot of inquiries from my auto loan, so I try to be more strategic. Once I have more history and experience, I will go after the cards I really want.

So I guess the question is, are you willing to take a few HP for the cards you want? Or do you want to play it safe, and go for the cards you know you can get? Given you don't have a lot of inquiries, it could be worth the risk and go for it a couple of times. If you don't get them, you can always go to the "safer" cards.

Re: What should be my next step?

SouthJamaica — Sun, 14 Apr 2019 22:13:54 GMT

@Anonymous wrote:
Hi,

I currently have one credit card, a Discover Secured (been unsecured for 1.5 years), which I’ve just passed the 2-year mark of having this month. It currently has a 4,000 limit.

There are a few cards I’d like to get, but since I don’t need any of them, my priority is to do the smartest thing credit wise. Hence me being here asking you smart peeps!

My current scores (according to Credit Karma):
Transunion: 741 (1 hit — from a year ago)
Equifax: 754 (0 hits)

My FICOs:
Transunion FICO: 776
Experian FICO: 765

The cards I’m interested in:
- Chase Freedom Unlimited - I applied for this March 2018 and was denied for insufficient credit history - which is where the hit came from.
- Amazon Prime Rewards - Frequently shop here
- Target Red - Also frequently shop here

I’m also interested in the Amex Blue Cash for groceries, Amex offers, and diversifying. But I’d consider that a future project—unless you think I should bump it up.

Note, I’m a relatively new US citizen which is why my credit history is very new.
Thanks!

I think you're ready to take a swing at the Chase FU.

Re: What should be my next step?

KLEXH25 — Sun, 14 Apr 2019 22:27:10 GMT

@SouthJamaica wrote:
@Anonymous wrote:
Hi,

I currently have one credit card, a Discover Secured (been unsecured for 1.5 years), which I’ve just passed the 2-year mark of having this month. It currently has a 4,000 limit.

There are a few cards I’d like to get, but since I don’t need any of them, my priority is to do the smartest thing credit wise. Hence me being here asking you smart peeps!

My current scores (according to Credit Karma):
Transunion: 741 (1 hit — from a year ago)
Equifax: 754 (0 hits)

My FICOs:
Transunion FICO: 776
Experian FICO: 765

The cards I’m interested in:
- Chase Freedom Unlimited - I applied for this March 2018 and was denied for insufficient credit history - which is where the hit came from.
- Amazon Prime Rewards - Frequently shop here
- Target Red - Also frequently shop here

I’m also interested in the Amex Blue Cash for groceries, Amex offers, and diversifying. But I’d consider that a future project—unless you think I should bump it up.

Note, I’m a relatively new US citizen which is why my credit history is very new.
Thanks!
I think you're ready to take a swing at the Chase FU.

I think his file is too thin for Chase (only 1 CC).

@Art21, did you also try the CHASE prequalification page? I forgot to mention that one. I just realized you said you applied in 2018 (not 2019). It might be worth a try to see if anything comes up.

Re: What should be my next step?

SouthJamaica — Sun, 14 Apr 2019 22:30:59 GMT

I think his file is too thin for Chase (only 1 CC).

For CSR or CSP yes. For FU, no.

Re: What should be my next step?

Anonymous — Mon, 15 Apr 2019 01:33:50 GMT

@KLEXH25

On the Capital One prequalified page, I selected 'Average Credit' because that's what I matched in their guidlines. However they then recommended me the QuickSilver, which they note requires 'Excellent'. When I (or you, if you're curious to see what I mean) go to apply for the QuickSilver, on the first page you hit where it asks for personal information, at the top there's a 'Card Summary' section. There, at the bottom right, it has a small ? next to the Credit Level: Excellent. It's on that 'hover-the-mouse-over-menu' where they repeat the Excellent requirements.

So basically: 1) I tell them on prequalified I'm Average credit. 2) They respond with a card they rate as requiring Excellent credit. 3) Leaving me quite confused.

Like you, I've read about AMEX being more accepting than others. (CreditKarma—again, I'm unsure how trustworthy this is—which rated the QuickSilver as 'Poor' for me, have the AMEX Blue Everyday & Cash Magnet as 'Very Good'.) So I'm considering hitting them first.

I did also try the Chase prequalified, but got the 'No offers' page.

Ideally I'd like to play it as safe as I can. But I'd rather get cards I'll use vs apply for something purely for building credit purposes. I'm content to wait—but since I'm almost at 2 years (and as you pointed out) there's limits to how far one card will take me. So my issue is figuring out which ones to go for and in which order (given the limited data that's openly available).

@SouthJamaica

Thanks for your input! As I mentioned just above, Chase don't have anything under prequalified for me at the moment. Do you think it'd still be 'safe' to give them a try?

Also, another thing that I noted several messages ago was my FICO age not yet being 2 years. It's 1 years and 11 months. Since Capital One mention a 3 year 'bounday' under their 'Excellent' category, I'm now wondering if there's a similar arbitrary line at the 2 year mark.

Re: What should be my next step?

SouthJamaica — Mon, 15 Apr 2019 02:13:27 GMT

@Anonymous wrote:
@KLEXH25

.....I did also try the Chase prequalified, but got the 'No offers' page.

Ideally I'd like to play it as safe as I can. But I'd rather get cards I'll use vs apply for something purely for building credit purposes. I'm content to wait—but since I'm almost at 2 years (and as you pointed out) there's limits to how far one card will take me. So my issue is figuring out which ones to go for and in which order (given the limited data that's openly available).

@SouthJamaica

Thanks for your input! As I mentioned just above, Chase don't have anything under prequalified for me at the moment. Do you think it'd still be 'safe' to give them a try?

Yes. Most people who have Chase cards will tell you they never showed up as prequalified on the site. The Freedom and Freedom Unlimited are more entry level cards with Chase. I think you have a good shot at getting one of them.

You're probably 'safer' with an application for the Capital One Quicksilver, which is a useful card, but (a) I hate Capital One, and (b) Capital One usually triple pulls. Chase will single pull, and on occasion double pull.

Re: What should be my next step?

KLEXH25 — Mon, 15 Apr 2019 02:31:37 GMT

That’s good to know about Chase!

You also have to realize that just because you “prequalify” doesn’t mean you’ll get it either, so there’s always a risk to some extent.

@Art21 you do have a lot of good things going with your file that makes up for it being thin (age, good history, low inquiries, scores) so keep that in mind too.

Re: What should be my next step?

Anonymous — Mon, 15 Apr 2019 05:50:41 GMT

You should be fine getting the amex blue cash. Amex only goes by your Experian.
When I got mine, I think I had a score around 690, only 70k income, a nearly completed 3 year auto loan, 1x 2 year old card with a 1300 limit, and maybe 1 hard pull still on experian.

If you pre-qualify for the everyday card (and especially the gold), you should for the blue cash.

Also, take the credit karma qualify ratings with a grain of salt. If you join other credit monitoring sites, they'll rate you differently. One site said I had excellent approval odds for the blue cash every day, while the other said poor odds. I think the different sites' commissions play a role in their suggested odds on different cards.

If you get the blue cash everyday, you can request a 3x credit limit in 61 days, and again 6 months later, if I'm not mistaken.
After a year, you can request to upgrade to the Blue Cash preferred. The preferred makes the Amazon card pretty pointless, as the Amazon card is only 5%. The preferred has 6% at groceries. Go to a Whole Foods, but a gift card with a few hundred dollars on it for 6% cash back, and load the gift card to your Amazon account. Win.

Also...someone might have to confirm this, but I've read if you apply for a credit card and a charge card from AMEX on the same business day, it will only put 1 hard pull on your credit report. 2 charge or 2 credit cards require 5 days apart. So you could actually apply for the Gold card and Blue Cash card on the same day for only 1 hard pull to your Experian!

I'll try to find the place I read that and edit in the link in a moment.
Found: https://www.doctorofcredit.com/15-things-everybody-should-know-about-american-express/

Re: What should be my next step?

Anonymous — Mon, 15 Apr 2019 13:30:48 GMT

Thanks to all your help, I think I have a plan. I’m going to hit AMEX on the Blue Everyday first since they’re (potentially?) more likely to say yes. Then I’ll hit Chase again and see what they say.

I’ll report back with AMEX’s response first before I do anything else.

One question: If I apply through a ‘Refer-a-friend’, does that make any difference to my application?

Also: I noticed that my Discover was allowing me to request a CLI. I did it this morning and to my surprise, they’ve given me an extra $300 without a pull. So now I’m up to $4300.

@SouthJamaica

That’s interesting about the FU. I think I’ll give them a go and see what happens since the FU is a card I’d like to have.

@KLEXH25

You make a good point. It’s that two-year thing that has me hung up, but like you said, there are other qualities that make it up.

@Rebuilt

Thanks for the advice and information on AMEX. As I stated above, I think I’ll now hit them first and see what they say.

Re: What should be my next step?

KLEXH25 — Mon, 15 Apr 2019 15:27:52 GMT

Congratulations on the CLI. There is a chance you can get another increase by calling them on the same day: 800-347-4856. MyFicoers call it the “double dip.” You should give it a try! You have nothing to lose. It should not require a HP, but they will it ask you before if it will be.

Look forward to seeing what other cards you get.