topic Re: Need Help on a Decision in Credit Cards

Need Help on a Decision

BrokaToe — Mon, 24 Dec 2012 02:41:06 GMT

Heya folks, what's been going on. I've been hiding in the garden for the last 7 months or so, but the itch is becoming quite overwhelming.

You can see my current FICO scores below. I have $500 BOA 99/500 card and a $300 secured Cap1, and $300 Buckle card. They are all at about 7 months perfect payment history, util is around 3% currently on the BOA card, the other 2 cards have $0 balance. Oldest account opened 10 years ago and AAoA is 4 years.

On a couple of my reports I have old school loans in collection status but showing no balance. They have recently been added as new positive tradelines due to rehab completion and are showing positive history since 2002. No other baddies to speak of.

What would you suggest I apply for? I was going to go for Zync, but it's obviously not an available product anymore. I like cash back, but I don't want to wast an inquiry if the odds are against me. BTW I have no more than 2 inquiries on any of my reports.

Thanks for any help or advice..

Re: Need Help on a Decision

jsucool76 — Mon, 24 Dec 2012 02:47:49 GMT

@BrokaToe wrote:
Heya folks, what's been going on. I've been hiding in the garden for the last 7 months or so, but the itch is becoming quite overwhelming.

You can see my current FICO scores below. I have $500 BOA 99/500 card and a $300 secured Cap1, and $300 Buckle card. They are all at about 7 months perfect payment history, util is around 3% currently on the BOA card, the other 2 cards have $0 balance. Oldest account opened 10 years ago and AAoA is 4 years.

On a couple of my reports I have old school loans in collection status but showing no balance. They have recently been added as new positive tradelines due to rehab completion and are showing positive history since 2002. No other baddies to speak of.

What would you suggest I apply for? I was going to go for Zync, but it's obviously not an available product anymore. I like cash back, but I don't want to wast an inquiry if the odds are against me. BTW I have no more than 2 inquiries on any of my reports.

Thanks for any help or advice..

No Apps 'til - 5/2013 - Not working out huh? xD

If you wanted an amex charge I would still suggest going for one. The AFs are all waived for the first year so if it is too expensive to justify it you can always cancel. All of the charge cards (with the exception of possibly the plat (and obv the cent) seem to have the same underwriting criteria, so I would just go for PRG for the first year at least.

What other kind of cards are you looking for?

Re: Need Help on a Decision

BrokaToe — Mon, 24 Dec 2012 03:07:31 GMT

@jsucool76 wrote:
@BrokaToe wrote:
Heya folks, what's been going on. I've been hiding in the garden for the last 7 months or so, but the itch is becoming quite overwhelming.

You can see my current FICO scores below. I have $500 BOA 99/500 card and a $300 secured Cap1, and $300 Buckle card. They are all at about 7 months perfect payment history, util is around 3% currently on the BOA card, the other 2 cards have $0 balance. Oldest account opened 10 years ago and AAoA is 4 years.

On a couple of my reports I have old school loans in collection status but showing no balance. They have recently been added as new positive tradelines due to rehab completion and are showing positive history since 2002. No other baddies to speak of.

What would you suggest I apply for? I was going to go for Zync, but it's obviously not an available product anymore. I like cash back, but I don't want to wast an inquiry if the odds are against me. BTW I have no more than 2 inquiries on any of my reports.

Thanks for any help or advice..

No Apps 'til - 5/2013 - Not working out huh? xD

Yah, I could probably wait, I just kind of feel like I've made enough progress so far to be approved for something a little better already.

I really like cashback options on cards. I'm not really one to use airline points or anything like that, cos I never fly. I don't ever go to shows or anything like that either, so really as far as rewards, the cash back option is the best for me.

Re: Need Help on a Decision

webhopper — Mon, 24 Dec 2012 03:27:01 GMT

I recommend chase freedom, discover more, chase amazon, or amex PRG

Re: Need Help on a Decision

Anonymous — Mon, 24 Dec 2012 14:22:01 GMT

I'd really wait until any secured product graduated.

Chase likes some CC use history so it's hard to imagine they'd show any love at this point.

It takes a lot of patience to not apply all willy-nilly as scores start to improve. Inquiries drop scores and remain visible for two years.

Re: Need Help on a Decision

BrokaToe — Mon, 24 Dec 2012 14:54:28 GMT

@Anonymous wrote:
I'd really wait until any secured product graduated.

Chase likes some CC use history so it's hard to imagine they'd show any love at this point.

It takes a lot of patience to not apply all willy-nilly as scores start to improve. Inquiries drop scores and remain visible for two years.

Yah I've thought about the inquiries lowering my score a bit. Actually you're probably right, I wasn't really thinking about the benefits of graduation. Although I doubt my Cap1 will ever do that, but either way looks like I'll probably be waiting for that 5/2013 date after all.

My main mission was to get in with Amex for the backdating, but since Zync is no longer available, then that probably kills that idea.

Re: Need Help on a Decision

kevinjjc — Mon, 24 Dec 2012 15:16:56 GMT

I wouldn't recommend Chase right now since it's very difficult to get your APR lowered once it's set with Chase.

Re: Need Help on a Decision

Anonymous — Mon, 24 Dec 2012 16:05:01 GMT

@BrokaToe wrote:
@Anonymous wrote:
I'd really wait until any secured product graduated.

Chase likes some CC use history so it's hard to imagine they'd show any love at this point.

It takes a lot of patience to not apply all willy-nilly as scores start to improve. Inquiries drop scores and remain visible for two years.
Yah I've thought about the inquiries lowering my score a bit. Actually you're probably right, I wasn't really thinking about the benefits of graduation. Although I doubt my Cap1 will ever do that, but either way looks like I'll probably be waiting for that 5/2013 date after all.

My main mission was to get in with Amex for the backdating, but since Zync is no longer available, then that probably kills that idea.

I realize backdating is probably the most attractive feature of Amex, for some, but many here have posted that they don't really care for lower tiered products and short histories. Also, you have to ask yourself on some level "Is having an Amex worth paying $100/yr while rebuilding/building my credit?".

Another factor to consider is adding a new account will lower average age of accounts. That might not be the best thing to do considering your cards are only 7 months old.

Amex used to have a link where you could see if there were any pre-approved offers with a soft pull but I'm unable to find it.

Definitely take my advice with a grain of salt. Everyone's situation is different. I'm not rebuilding but pretty much have an allergy to new apps, LOL! If someone did come out with a must have product I could always apply for it and then get a third Amex to offset changes in average account age. That being said, it took years (and I do mean years) of rebuilding, protecting, and careful nursing of my credit to reach a point where something like that is even an option.

Re: Need Help on a Decision

Anonymous — Mon, 24 Dec 2012 16:13:18 GMT

I hate I can't see scores on my iPhone. Since you already have a card with Cap1, why don't you apply for the green cash rewards card? You're right, Cap1 rarely converts cards over and secured cards with them don't graduate. Typically, you have to reapply for something else. I just applied for the Freedom and was initially declined and had to recon for approval pending final review. They were barking over my revolving account history not being long enough. I have a line of credit never late opened back from 2008 but I also have a BK that is 9 yrs and 4 mos old. Chase might bark at your short history (7 mos) or they may not. You said 7 mos max history on revolvers? If you are declined or they say they need to review your application, ask them for the # to the loan dept and they will tell you why, then recon. Chase is really good for approval through recon.

I think you will get approved hands down with Cap1 for their cash rewards card. I was instantly approved with a 2000 CL and a CLI of 500 at 7th statement. If you don't mind, could you repost your scores for cellular users?

Re: Need Help on a Decision

jsucool76 — Mon, 24 Dec 2012 16:18:14 GMT

@Anonymous wrote:
I'd really wait until any secured product graduated.

Chase likes some CC use history so it's hard to imagine they'd show any love at this point.

It takes a lot of patience to not apply all willy-nilly as scores start to improve. Inquiries drop scores and remain visible for two years.

I thought inqs only affected scores for 1 year? I know they stay on your report for 2, but I'm fairly certain after 12 months they stop affecting your score.

Also all of amex's charge products (with the exception of plat/cent) waive the AF for the first year, so it is definitely worth it to lock in a member date if you can.

Re: Need Help on a Decision

Anonymous — Mon, 24 Dec 2012 16:28:23 GMT

@jsucool76 wrote:
@Anonymous wrote:
I'd really wait until any secured product graduated.

Chase likes some CC use history so it's hard to imagine they'd show any love at this point.

It takes a lot of patience to not apply all willy-nilly as scores start to improve. Inquiries drop scores and remain visible for two years.
I thought inqs only affected scores for 1 year? I know they stay on your report for 2, but I'm fairly certain after 12 months they stop affecting your score.

Also all of amex's charge products (with the exception of plat/cent) waive the AF for the first year, so it is definitely worth it to lock in a member date if you can.

Does paying to lock in a member date make sense for someone who needs a secured product? I realize the AF is waived first year. Year two people will be asking for a PC hoping things have improved enough to get a credit card from Amex.

I'm not saying people shouldn't want an Amex. I'm just saying it should be the right financial decision.

Re: Need Help on a Decision

jsucool76 — Mon, 24 Dec 2012 16:36:35 GMT

@Anonymous wrote:
@jsucool76 wrote:
@Anonymous wrote:
I'd really wait until any secured product graduated.

Chase likes some CC use history so it's hard to imagine they'd show any love at this point.

It takes a lot of patience to not apply all willy-nilly as scores start to improve. Inquiries drop scores and remain visible for two years.
I thought inqs only affected scores for 1 year? I know they stay on your report for 2, but I'm fairly certain after 12 months they stop affecting your score.

Also all of amex's charge products (with the exception of plat/cent) waive the AF for the first year, so it is definitely worth it to lock in a member date if you can.
Does paying to lock in a member date make sense for someone who needs a secured product? I realize the AF is waived first year. Year two people will be asking for a PC hoping things have improved enough to get a credit card from Amex.

I'm not saying people shouldn't want an Amex. I'm just saying it should be the right financial decision.

You aren't paying to lock in a member date if it is free....#CommonSense

You only need really 6 months of history to get an amex charge, OP has 7. It would be a perfect option to get your foot in the door with amex. The "Go To" used to be the zync which is no longer around, and all charge cards have the same UW criteria. Might as well try.

Other options of course are cash back products that OP is talking about, cap1 cash rewards, discover more/IT, citi forward.

Re: Need Help on a Decision

SnackTrader — Mon, 24 Dec 2012 17:36:23 GMT

I'll throw in some of my ideas here:

I also have only 6 months of revolving history (but an AAoA of 4 yrs like the poster), and I was debating the Amex charge card idea. My ultimate goal was the BCP, so I made the decision NOT to apply for the Green and go right for the BCP. The thought was that adding less than a year of backdating probably wouldn't offset adding another new account if I grabbed the Green in December and then the BCP in, say, June. I also felt that I would be ready for the BCP in 2013, which reduces the backdating Over waiting for 2014.

Anyway, all I'm saying is that if you don't want a charge card, OP, and you think you will qualify for a revolver in 2013, then you will gain less than a year's backdating with a charge, so why not just wait to try for the revolver?

My vote is for continuing to Garden, think through a multi-step plan (it will give you something other than the itch to think about), and then execute that plan.

For example:

Does BoA unsecure After a year? If so, wait for that to unsecure, pull your scores at that time, apply for your favorite 2 or 3 cards (your INQs are low, so it won't be a drastic approach), and see what you get. I'm sure a year of positive revolving history, and rehabilitated school loans will go a long way. Plus, if you qualify for an Amex revolver at that time, it will be worth it to NOT add a charge today (only 1 new account, only 1 hard INQ, no additional card to mess with). If they deny you, try again in December 2013.

My plan was 6 months of gardening with an unsecured card, and then applying for 3 new cards. I stuck to it, and it worked. But even if it didn't, it made me happy every day that I stuck to that plan and showed my patience.

Kinda like that episode of Seinfeld, I was the master of my domain!

Re: Need Help on a Decision

HiLine — Mon, 24 Dec 2012 18:02:53 GMT

@BrokaToe wrote:
Heya folks, what's been going on. I've been hiding in the garden for the last 7 months or so, but the itch is becoming quite overwhelming.

You can see my current FICO scores below. I have $500 BOA 99/500 card and a $300 secured Cap1, and $300 Buckle card. They are all at about 7 months perfect payment history, util is around 3% currently on the BOA card, the other 2 cards have $0 balance. Oldest account opened 10 years ago and AAoA is 4 years.

On a couple of my reports I have old school loans in collection status but showing no balance. They have recently been added as new positive tradelines due to rehab completion and are showing positive history since 2002. No other baddies to speak of.

What would you suggest I apply for? I was going to go for Zync, but it's obviously not an available product anymore. I like cash back, but I don't want to wast an inquiry if the odds are against me. BTW I have no more than 2 inquiries on any of my reports.

Thanks for any help or advice..

You most likely will not get a credit card from Chase. They want to see at least 1 year of credit card usage and do not trust secured credit cards. I think your best shot is with Bank of America since you already have a history with them, even better if you bank with them too.

Re: Need Help on a Decision

Anonymous — Mon, 24 Dec 2012 18:33:23 GMT

I think OP also has a good shot at getting the green Cap1 rewards card too since OP has history with Cap1. OP if you do decide to app with Cap1, I would apply for the one for average credit since you have limited history. There are two types of the green card with slightly different terms. One is for avg credit, the other is for excellent credit. These two are shown on their website.

Re: Need Help on a Decision

kevinjjc — Mon, 24 Dec 2012 18:47:33 GMT

In my opinion, skip Capital One if at all possible.

Re: Need Help on a Decision

kimmiller112 — Mon, 24 Dec 2012 18:58:36 GMT

If you are thinking about Capital One, don't forget that they pull each CRA. Like others mentioned, it's probably too soon for Chase but I would imagine you would have a good shot at Discover, Amex and/or Citi. If you are thinking about Citi, app there first as they are very inquiry sensitive.

Re: Need Help on a Decision

Cdnewmanpac — Mon, 24 Dec 2012 19:02:26 GMT

@jsucool76 wrote:
You aren't paying to lock in a member date if it is free....#CommonSense

You only need really 6 months of history to get an amex charge, OP has 7. It would be a perfect option to get your foot in the door with amex. The "Go To" used to be the zync which is no longer around, and all charge cards have the same UW criteria. Might as well try.

Other options of course are cash back products that OP is talking about, cap1 cash rewards, discover more/IT, citi forward.

I think you are forgetting that OP has an AAoA >4 years. So the PRG is not "free". It will cost him substantially in AAoA for a card he will not possibly benefit from after a year. He is a low spender who doesn't travel. Getting a PRG now would reduce his AAoA, give him some bonus points (assuming he can meet the minimum spend) that translate into about a $250 GC (remember, MR points gain value by converting to FF miles, something he won't be doing). In return, he'll get some slight backdating next year, when he applies for the BCE (the card that makes sense for him). But he will now have 2 amex accounts, both of which are younger than his AAoA. So his AAoA will now shrink again. So the "cost" is in reducing the strongest part of his credit profile (AAoA) in exchange for a card he will only possibly benefit from for the next year.

Backdating only really helps in three scenarios: you are just starting out in credit, so taking a hit now does minimal damage but gives you the potential to mitigate damage down the road; you see am amex product that you like and see several others you may want in the future, so are willing to take the hit now in return for help down the line; you have an amex member date that is older than your AAoA, so can use Amex applications to offset hits from other cards.

OP: while I think you could get a freedom today (I don't know where the idea that Chase doesn't "trust" secured cards comes from, and has not been borne out in my experience), but you will likely get a very low limit. Chase is always a hard pull for CLI (I know there are exceptions, but mortals should plan for it), so getting one new with a low limit will cost you at least two pulls (one for card, one for reasonable limit in a year) vs waiting until you have a year of history, likely getting a better limit and getting only 1 pull.

Cap1 cards probably don't make sense: you won't qualify for the no AF cards and you will need to spend at least 2k on the card to offset the AF of the one for "average credit". If it were me with your profile, I'd wait until a year, see if BofA unsecures you, then apply for Chase Freedom and Amex BCE. You may have to recon the freedom, but that is pretty easy to do. That will give you two good cards with no AF, 5% cash back in bonus categories, various cash back in BCE categories, 1% minimum on everything. Then, in a year, you can add the discover, forward or whatever. You might even find your BofA card turning useful over time.

Re: Need Help on a Decision

SnackTrader — Mon, 24 Dec 2012 19:16:12 GMT

@Cdnewmanpac wrote:
@jsucool76 wrote:
You aren't paying to lock in a member date if it is free....#CommonSense

You only need really 6 months of history to get an amex charge, OP has 7. It would be a perfect option to get your foot in the door with amex. The "Go To" used to be the zync which is no longer around, and all charge cards have the same UW criteria. Might as well try.

Other options of course are cash back products that OP is talking about, cap1 cash rewards, discover more/IT, citi forward.
I think you are forgetting that OP has an AAoA >4 years. So the PRG is not "free". It will cost him substantially in AAoA for a card he will not possibly benefit from after a year. He is a low spender who doesn't travel. Getting a PRG now would reduce his AAoA, give him some bonus points (assuming he can meet the minimum spend) that translate into about a $250 GC (remember, MR points gain value by converting to FF miles, something he won't be doing). In return, he'll get some slight backdating next year, when he applies for the BCE (the card that makes sense for him). But he will now have 2 amex accounts, both of which are younger than his AAoA. So his AAoA will now shrink again. So the "cost" is in reducing the strongest part of his credit profile (AAoA) in exchange for a card he will only possibly benefit from for the next year.

Backdating only really helps in three scenarios: you are just starting out in credit, so taking a hit now does minimal damage but gives you the potential to mitigate damage down the road; you see am amex product that you like and see several others you may want in the future, so are willing to take the hit now in return for help down the line; you have an amex member date that is older than your AAoA, so can use Amex applications to offset hits from other cards.

OP: while I think you could get a freedom today (I don't know where the idea that Chase doesn't "trust" secured cards comes from, and has not been borne out in my experience), but you will likely get a very low limit. Chase is always a hard pull for CLI (I know there are exceptions, but mortals should plan for it), so getting one new with a low limit will cost you at least two pulls (one for card, one for reasonable limit in a year) vs waiting until you have a year of history, likely getting a better limit and getting only 1 pull.

Cap1 cards probably don't make sense: you won't qualify for the no AF cards and you will need to spend at least 2k on the card to offset the AF of the one for "average credit". If it were me with your profile, I'd wait until a year, see if BofA unsecures you, then apply for Chase Freedom and Amex BCE. You may have to recon the freedom, but that is pretty easy to do. That will give you two good cards with no AF, 5% cash back in bonus categories, various cash back in BCE categories, 1% minimum on everything. Then, in a year, you can add the discover, forward or whatever. You might even find your BofA card turning useful over time.

+1,000,000

Re: Need Help on a Decision

HiLine — Mon, 24 Dec 2012 19:21:01 GMT

@Cdnewmanpac wrote:
(I don't know where the idea that Chase doesn't "trust" secured cards comes from

That comes from my conversation with a Chase recon representative.