topic First post! need help deciding to apply in Credit Cards

First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 06:18:24 GMT

Hi all, I'm new to MyFico, this will be my first post.

I'm trying to decide if i should apply for a new card. I recently turned 21 in September, and I feel that I am well on my way to better credit.

This is what my current file consists of:

Barclaycard Rewards Mastercard - (Since May 2012) 2K limit, 0 current balance

Citi Forward Visa - (Since February 2012) 2K Limit, 0 current balance

SunTrust Bank Platinum Rewards Visa (Since April 2012) - 1K limit, $150 current balance

Platinum Visa from local credit union - (Since September 2009) - $300 Limit, $40 current balance

Best Buy Credit Card - (Since December 2010) - 1.2K Limit, 0 current balance

Chase Mortgage - (Since December 2011) $684/month payment

Yearly income approx: $30k

Credit Karma score : 713 Credit Sesame score : 726

6 hard inquiries in 2012

Since buying the house last year, I have focused on strengthening my credit card portfolio, and I have been happy with the results so far. I have absolutely no late payments or derogatory marks, don't carry large balances and PIF when I can, and lately I have been rotating the cards I use each month to maximize rewards and also to keep any from going without use. I've currently got my eyes set on an AMEX Blue Cash Preferred because I want to build a history with them, plus I drive nearly 130 miles each day so the gas rewards would be awesome! I am hesitant to apply, however, because of the AAOA on my profile and because I am unsure of the requirements to "get in" with an AMEX revolving card. Any advice or help would be greatly appreciated! I've been browsing the forums for awhile now and I have been very impressed with the knowledge base, I know I'm in the right place!

Re: First post! need help deciding to apply

Shogun — Thu, 04 Oct 2012 06:20:22 GMT

Looks like you have a pretty good grasp of finances. At this point, only get a card that will benefit you. Seems like the Amex might be a fit for you. Then just take the cards you have and garden them well.

Oh, and btw. Welcome to the Forums!

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 06:22:59 GMT

Seem like you are doing great with your credit at this age. I am sure there are many people on this forum doing what you have accomplish at this age. A big congrat and welcome to the forum. Keep it up.

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 06:27:27 GMT

I would recommend that you wait awhile. You have three fairly new accounts and several inquiries. Let all your accounts age for awhile. Even if you could be approved now, your terms will be better later.

Also, only let one card report a balance each month. I notice you have balances on two cards. Aim for total utilization between 1-5%. So, in your case between $65-$325.

It also looks like the card from your credit union is due for a credit limit increase. Call them up and see if they can do an increase with just a soft inquiry.

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 06:28:03 GMT

@Anonymous wrote:
I would recommend that you wait awhile. You have three fairly new accounts and several inquiries. Let all your accounts age for awhile. Even if you could be approved now, your terms will be better later.

+1 I agree, even though you have over 1 year in your AAoA and good all around credit I say it would be better if you wait a little bit.

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 06:29:09 GMT

what kind of bestbuy credit card do you have and when was last time you got a CLI ???

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 06:36:08 GMT

@Anonymous wrote:
what kind of bestbuy credit card do you have and when was last time you got a CLI ???

Bestbuy offers a standard in house card through Capital One. It is pretty easy to qualify for and offers interest free financing based on the purchase price. As I recall $250 is 6 months, $500 is 18 months, and $900 is 3 year but you can check out their website to be sure.

Any store clerk can help you apply for the card.

I was initially approved for a $1200 limit, it is possible that was also OP's starting limit. After a few months they raised my limit to $3000.

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 06:39:56 GMT

@Anonymous wrote:
@Anonymous wrote:
what kind of bestbuy credit card do you have and when was last time you got a CLI ???
Bestbuy offers a standard in house card through Capital One. It is pretty easy to qualify for and offers interest free financing based on the purchase price. As I recall $250 is 6 months, $500 is 18 months, and $900 is 3 year but you can check out their website to be sure.

Any store clerk can help you apply for the card.

I was initially approved for a $1200 limit, it is possible that was also OP's starting limit. After a few months they raised my limit to $3000.

I got that standard best buy credit card, and had a $2100 CL, and just last month pushed the luv button on their website and got an CLI to $3100.

maybe he was up for a CLI in that card as well.

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 06:45:44 GMT

maybe he was up for a CLI in that card as well.

Only if it is only a soft pull. I know my increase was a hard pull, but something small via the website may only be a soft pull. Mine was a hard pull because I called in and spoke directly with underwriting. Which is only possible because HSBC services the cards and not Capital One.

I think their mastercard is a joke, and is being slowly phased out. So most likely, OP has the in store card.

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 06:48:14 GMT

Thanks for the advice guys! My BBY card is the standard in store card, started with a CL of 600, increased to 1200 in May through the website button. I've also thought about requesting a CLI on the credit union card (I asked in april and was denied) they have very strict income guidelines, I may ask again but I don't know if they have a soft pull option (Same with the CITI, its been more than 6 months, but I keep seeing the "you authorize citi to check credit history" message) . I'm also on the same page, I do think I should let the accounts age and I really don't want to waste an inquiry

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 07:03:48 GMT

Just keep in mind it is better to drop your score now, than later on when you actually NEED credit.

Inquiry's drop off quick and AAoA bounces back. So, no matter what you choose to do, it won't hurt you too bad later on.
Though, sometimes it is better to have the best score possible when you apply. That way you get a higher limit and lower APR.

I would call the credit union back. That account really stands out on your credit report. Try to get the limit more in line with your other cards. Give them as high of an income as honestly possible. Generally, $36k is the magic number. Have you gotten a raise lately? Earning income any other ways?

Re: First post! need help deciding to apply

Revelate — Thu, 04 Oct 2012 07:32:57 GMT

Welcome to the forums be1991!

TLDR version: there's a number of positives for you to apply soon (mid-December), and really no negative in my opinion.

Rambling version: I'll offer a slightly different viewpoint than the others: if you want a particular tradeline, and you have a good chance of being approved (looks like you do for your BCP) it's best for your mid-term FICO to simply obtain it as soon as possible.

You already have a mortgage, and you already have a car, so I'm making the assumption you're not going to apply for anything big-ticket in the next year. As a result, as long as you can restrain yourself from constant applications () then there's really no downside to taking the shot sometime this year: in particular, once that Barclaycard posts it's sixth payment which probably means a December application for a BCP in my opinion. This is especially true as over the next 3-4 years Amex backdating (I'd recommend searching the forum for the term if it's unfamiliar) may well be a benefit to you at some point to have your membership date as 2012 instead of 2013.

When it comes right down to it, one's FICO score when you're not applying for something is completely irrelevant, and as long as you don't get sucked into constant applications, an additional inquiry, even if it's "wasted" (FWIW I don't consider a denial to be a straight waste) is on average 5 points or thereabouts, and sometimes no damage at all since you have multiple inquiries on your report already.

So for my math, there's good reasons to apply in December (no later than Dec 15th I'd recommend) and no significant reason not to. The card would absolutely be a non-trivial financial benefit as you suggest, you have a reasonable chance of approval, and it can possibly help you in the future to have your membership established this year rather than next. There's no real downside as your backup plan is to wait six or more months anyway from the sounds of it, by which time your current inquiries will have fallen off the scoring portion of the sheet, and your Amex one will be minimally impactful to your score, and presumably your subsequent Amex application if you're denied this time.

My thoughts anyway, longer term I think you'll be just fine with whatever you decide to do.

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 07:21:14 GMT

Agree with Revelate, better to get the BCP this year.

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 07:28:59 GMT

I don't think a denial is completely out of the question right now.

+1 to a December application....until then, no more hard inq's.

Re: First post! need help deciding to apply

Anonymous — Thu, 04 Oct 2012 07:30:04 GMT

[Duplicate message]