topic Order Up! What to do first on way to BCP and helping my score... in Credit Cards

Order Up! What to do first on way to BCP and helping my score...

Moleman_H — Fri, 07 Sep 2012 16:11:47 GMT

Hi,

My goal is helping my fico score (want to look pretty in May 2013 in case I want to look for a morgage) an getting an AMEX BCP.

I have a few things I could be doing, but I don't know which order/time line would be best...

My background:

Equifax FICO: 713 (from this site),

AaoA: 1y, oldest account 14 months,

Income: 125k+ a year.

Accounts:

14 month old joint car loan: $2800/$5000 (got it to start having a credit history)

14 month old secured VISA from local CU: $0/$500 (been using it to pay $18 netflix/hulu in the past)

7 month old Citi Forward Authorized user: $800/$7000 (I can keep this at 5% in the future)

So... I got a short history and no useful CC of my own.

Things I'm considering doing:

Unsecure Visa and ask for a more reasonable limit.
Positive: Lower utilization and new lenders might be more willing to give me a higher limit, too?
Negative: Not sure if they would hard-pull or if this would end up being a new account lowering my average age of accounts.
Apply for Zync.
Positive: Foot in door with Amex. If I get it this year, it would allow me to backdate the BCP to January 2011?
Negative: Pull by Amex; lowers my average age of accounts; I don't want the card.
Apply for BCP:
Positive: The card I want.
Negative: Risk of rejection due to thin file/score?

What do you think would be my best moves (when, which order)?

Re: Order Up! What to do first on way to BCP and helping my score...

Anonymous — Fri, 07 Sep 2012 16:26:08 GMT

@Moleman_H wrote:
Hi,

My goal is helping my fico score (want to look pretty in May 2013 in case I want to look for a morgage) an getting an AMEX BCP.

I have a few things I could be doing, but I don't know which order/time line would be best...

My background:
Equifax FICO: 713 (from this site),
AaoA: 1y, oldest account 14 months,
Income: 125k+ a year.

Accounts:
14 month old joint car loan: $2800/$5000 (got it to start having a credit history)
14 month old secured VISA from local CU: $0/$500 (been using it to pay $18 netflix/hulu in the past)
7 month old Citi Forward Authorized user: $800/$7000 (I can keep this at 5% in the future)

So... I got a short history and no useful CC of my own.

Things I'm considering doing:
Unsecure Visa and ask for a more reasonable limit.
Positive: Lower utilization and new lenders might be more willing to give me a higher limit, too?
Negative: Not sure if they would hard-pull or if this would end up being a new account lowering my average age of accounts.
Apply for Zync.
Positive: Foot in door with Amex. If I get it this year, it would allow me to backdate the BCP to January 2011?
Negative: Pull by Amex; lowers my average age of accounts; I don't want the card.
Apply for BCP:
Positive: The card I want.
Negative: Risk of rejection due to thin file/score?
What do you think would be my best moves (when, which order)?

Do #1 first. As for #2, if you really have no plans for the Zync, it is really up to you. It will get your foot in thethe door and secure your member date before the year is up. I personally think you should hold off on app'ing for the BCP until you have a bit more experience with some higher end cards or history with an amex charge card. I think they will see the negatives that you alraedy mentioned with having a thin file. I do not think your score is too low to be approved (I was approved with a 687 ex fico), but your profile is definitely thin. Have you considered getting another CC that isn't secured if your CU won't let you unsecure it?

Re: Order Up! What to do first on way to BCP and helping my score...

Cdnewmanpac — Fri, 07 Sep 2012 16:27:37 GMT

First, your long term AAoA will be better adding another card now than in 6 mos or a year. In the very short term, you take a hit, but only if you are approved, meaning you got the card you want. Second, I wouldn't worry about the secured card unless you need the money. Third, don't apply for a card you don't want. If you want a bce, app for that. If rejected, you will know what you need to work on. If accepted, yay. I would also look at a slightly easier card in addition to your cu card and the amex: chase freedom seems a logical choice, depending on where you live/shop, you may find having just an Amex and one low limit visa/mc limiting. So I would app for bce first, then a 2nd visa/mc, then call your cu about unsecuring/CLI, then just chill until may.

Re: Order Up! What to do first on way to BCP and helping my score...

Anonymous — Fri, 07 Sep 2012 16:33:47 GMT

I think you have a decent chance at getting approved for the BCP since you have no baddies and you have a good income. You could also try for a Visa like the Chase Freedom.

Re: Order Up! What to do first on way to BCP and helping my score...

Moleman_H — Sat, 29 Sep 2012 17:27:31 GMT

Just a follow up.

I decided to skip the Zync as I don't really want it.

I paid down the secured card to 0 and the Citi Forward AU to about 5% util 2 weeks ago. Applied for the BCP today and got the "we will notify you of the decision by mail within 14 days" message. Checked the card application status page a few minutes later and it says "09/29/12 BLUE CASH PREFERRED(SM) Approved" Hope that means I'm in.

I will probably go to my CU next and ask them to unsecure the Visa/give me a meaningful CL.

Re: Order Up! What to do first on way to BCP and helping my score...

Anonymous — Sat, 29 Sep 2012 17:38:35 GMT

way to go! Congrats on the approval

Re: Order Up! What to do first on way to BCP and helping my score...

LS2982 — Sat, 29 Sep 2012 17:39:53 GMT

CONGRATS!!!

You need to call in to get your CL.

Re: Order Up! What to do first on way to BCP and helping my score...

Moleman_H — Sat, 29 Sep 2012 17:51:47 GMT

$2000 it is. I can work with that for 61 days

Re: Order Up! What to do first on way to BCP and helping my score...

Anonymous — Sat, 29 Sep 2012 19:18:28 GMT

Congrats!!!

Re: Order Up! What to do first on way to BCP and helping my score...

Moleman_H — Sat, 29 Sep 2012 20:34:10 GMT

And the CU unsecured the VISA at a lowish $1500 CL. Good enough for the sock drawer for now.

They pulled Experian and got something in the 770ies? Probably not FICO then, I guess.

Besides trying CLIs in a while, it's gardening time for me now.

Re: Order Up! What to do first on way to BCP and helping my score...

LS2982 — Sat, 29 Sep 2012 20:39:32 GMT

2K is decent to start off, your well on your way to 6k in 61 days!

Re: Order Up! What to do first on way to BCP and helping my score...

Moleman_H — Thu, 13 Dec 2012 03:27:15 GMT

Yep, just got a CLI to 6k

Re: Order Up! What to do first on way to BCP and helping my score...

charleeislegend — Thu, 13 Dec 2012 04:02:08 GMT

wow, congrats on the CLI! And thank you for not making a whole new thread on your CLI

Re: Order Up! What to do first on way to BCP and helping my score...

Moleman_H — Thu, 20 Jun 2013 15:01:28 GMT

Going with AMEX definitely was the right decision for me. 6 month CLI to 18k approved. Booyah!

For those interested:

Oldest Account: 1Y 11M (Secured Visa)

AAoA: 1Y 6M

Util on Amex at time of CLI request: around 8%

Re: Order Up! What to do first on way to BCP and helping my score...

HiLine — Thu, 20 Jun 2013 15:42:32 GMT

Congratulations on the CLI!!! Did you end up applying for a mortgage? How did that go?

Re: Order Up! What to do first on way to BCP and helping my score...

Moleman_H — Thu, 20 Jun 2013 15:58:41 GMT

No mortgage application yet. I'll probably look at that again in a year. Next step is probably letting AMEX report the new limit and then go back to my CU. I've been with them for two years at that point and my CC limit with them is less than 10% of what AMEX is giving me and less than 1% of my annual income now...

Re: Order Up! What to do first on way to BCP and helping my score...

HiLine — Thu, 20 Jun 2013 16:01:30 GMT

Make sure you don't get any unwanted inquiries