topic Re: Chase Pre-Approval...Need Advice! in Credit Cards

Chase Pre-Approval...Need Advice!

jakemod1 — Thu, 28 Feb 2013 09:32:47 GMT

CK alerted me that my FAKO score went up from 731 to 762, which puts me in their "excellent" category. This was due to me paying off all but one of my credit cards, although there are still a couple showing util, one for BoA @ 27% and Cap1 @ 11%. They don't update til next week. A Discover account I just opened in January is still not reporting and that is where the balance will report after everything updates. Last time I checked my score was over a month ago, and only through TU FICO: 702.

Curious, I decided to go to Chase's website and try their "See if you're prequalified..." link to see if I would be offered anything with my new credit profile. I've tried a couple times before and they never had any offers for me. To my surprise, they pre-approved me for a Chase Slate and Chase Freedom with the 0% promo for 15 months. I can tell they soft pulled my CR since it took a while to load after I input my info. It also had the "Opt-Out/Stop receiving prescreen..." message on the bottom.

What do you think? Should I go for it?? I am really trying hard not to app since I am waiting for BoA and Cap1 to report a zero balance. My concern is that if I wait, the Discover will report as well, and currently, it will have a 45% util. It does have my highest limit with $6,000, so I'm thinking it could also work in my favor and Chase will give me a high limit. Another issue I have is that I was planning on apping for the Amex BCE first, before the Freedom. I might ruin my chance with Amex if i jump the gun on this, i'm afraid. My ultimate goal is to get both the Amex BCE and Chase Freedom.

I am just confused and lost! I don't know how to best approach this. Please help a fellow myFico'er

Many thanks in advance.

Re: Chase Pre-Approval...Need Advice!

Anonymous — Thu, 28 Feb 2013 10:07:32 GMT

i recommend waiting!

the freedom is an easier card to get than bce (i'm guessing).

another reason being it's easy to build a good relationship with chase.

open a checking with them, deposit a few thousand at least into a CDO or something for a few months, and they'll be more open towards giving u a card even if there's something against u in your CR, as long as its not too major.

AMEX on the other hand is a little tougher to build a relationship with before u get approved for their cards. U can open a checking with them, but it isn't as good as with Chase (in my opinion) because Chase has a lot more branches, ATMs etc.

Edit: just tried that too. Preapproved for Freedom and Slate! NO CSP though

Does AMEX have something like this too? Just so I can see which ballpark I am in.

and just to be clear, do you mean your discover card has 45% utilization right now? or do you mean you have 45% utilization overall right now, and it will go down once discover reports?

Re: Chase Pre-Approval...Need Advice!

jakemod1 — Thu, 28 Feb 2013 10:12:36 GMT

@Anonymous wrote:
i recommend waiting!
the freedom is an easier card to get than bce (i'm guessing).

i just tried to check if im prequalified but the link seems to be not working due to maintenance?

another reason being it's easy to build a good relationship with chase.
open a checking with them, deposit a few thousand at least into a CDO or something for a few months, and they'll be more open towards giving u a card even if there's something against u in your CR, as long as its not too major.
AMEX on the other hand is a little tougher to build a relationship with before u get approved for their cards. U can open a checking with them, but it isn't as good as with Chase (in my opinion) because Chase has a lot more branches, ATMs etc.

I did have a previous relationship with Chase through Circuit City, when they were still opened. Chase closed that account due to the store closing, but the account was paid/never late. I was, however, only an AU. It still shows on my CR and due to fall off Nov 2014.

I'm not sure how well creditcards dot com's accuracy is, but when I tried their Card Match feature, they had exclusive offers for me with Amex (Gold, BCE, BCP, and Starwood I believe), again through SPs.

Maybe I should wait then...I was a click away from submitting the app. I, however, "accidentally" clicked the x button instead

Re: Chase Pre-Approval...Need Advice!

jakemod1 — Thu, 28 Feb 2013 10:25:38 GMT

@Anonymous wrote:
i recommend waiting!
the freedom is an easier card to get than bce (i'm guessing).

another reason being it's easy to build a good relationship with chase.
open a checking with them, deposit a few thousand at least into a CDO or something for a few months, and they'll be more open towards giving u a card even if there's something against u in your CR, as long as its not too major.
AMEX on the other hand is a little tougher to build a relationship with before u get approved for their cards. U can open a checking with them, but it isn't as good as with Chase (in my opinion) because Chase has a lot more branches, ATMs etc.

Edit: just tried that too. Preapproved for Freedom and Slate! NO CSP though

Does AMEX have something like this too? Just so I can see which ballpark I am in.

and just to be clear, do you mean your discover card has 45% utilization right now? or do you mean you have 45% utilization overall right now, and it will go down once discover reports?

My Discover has 45% util now, everything else is 0 balance. About 15% overall util. As mentioned, BoA and Cap1 have not reported 0 balance and Discover account have not reported to CRAs yet. Without those reporting, BoA is at 27% util and Cap1 at 11% util. About 9% overall util as of current reports.

Re: Chase Pre-Approval...Need Advice!

Burned2manybridgesB4 — Thu, 28 Feb 2013 10:37:28 GMT

A lot of dings headed your way, if you app. Inquiry, new accts, and the scoring drop potential. Dry dock amex until the dust settles, and util is lower than 10%

Re: Chase Pre-Approval...Need Advice!

jakemod1 — Thu, 28 Feb 2013 10:51:08 GMT

@Burned2manybridgesB4 wrote:
A lot of dings headed your way, if you app. Inquiry, new accts, and the scoring drop potential. Dry dock amex until the dust settles, and util is lower than 10%

I'm not sure if it matters, but I have no inquiries on EQ or EX, only 2 on TU. Per myFICO, AAoA is 4 years. Only recent app within the last 12 months was last month with Discover.

Re: Chase Pre-Approval...Need Advice!

Anonymous — Thu, 28 Feb 2013 10:52:44 GMT

@jakemod1 wrote:

My Discover has 45% util now, everything else is 0 balance. About 15% overall util. As mentioned, BoA and Cap1 have not reported 0 balance and Discover account have not reported to CRAs yet. Without those reporting, BoA is at 27% util and Cap1 at 11% util. About 9% overall util as of current reports.

so your discover card is a brand new card that you just got?

if so, i would apply before they report. however, amex will find out eventually and that might affect ur chances of CLI. Some people warned about FR, but it seems only for really extreme (or unlucky) circumstances.

don't know if this is accurate, and it's based upon what i've been reading, but util >30% seems to be big no no for amex revolvers unless you have history with them. always better to be on the safe side i suppose.

if you really want an amex badly, i would say go for it now, or pay your discover down till its below 30% and wait.

creditcards.com, like all prequalifications/pre-approvals, are not accurate entirely.

my girlfriend had the same thing and applied. got denied and she called recon. recon said they'll reconsider and its currently processing/pending again.

she has 731 fico experian, 65k annual income, 0 rent payment, 1 auto loan (8.4k owed), 0 late payments, no ck/bk/ca, AAoA 2yrs, oldest acct almost 5 years, newest acct opened 12/12.

Amex recon initially said because of her new credit line with chase recently (which also lowered the AAoA), and the number of inquiries she had (5 due to auto loan rate shopping), those were the reasons she was denied initially.

Re: Chase Pre-Approval...Need Advice!

SnackTrader — Thu, 28 Feb 2013 11:22:04 GMT

Creditcards.com doesn't offer pre-selected offers the way that lenders do with pre-screened tools. In fact, you don't even need to enter accurate information to get back results on creditcards.com. They just want to get everyone to apply through their site because they get revenue for doing so. Do not rely on their offers, IMHO.

You're in a dangerous spot, OP. Your utilization right now is probably not much better than when your Discover reports just due to the multiple cards reporting a balance factor. However, then you have to ask yourself if there is anything else on your report potentially holding you back. I think this is going to be a personal decision, but honestly I would apply before taking a new account hit - especially if that new account will be reporting 45% util. That just seems like a red flag to me.

Which leads me to just cautioning you on 0% interest. It's great now, but please make sure you have the cash to pay it off. New accounts can often lead to new debt that isn't often warranted.

Wishing you good luck with whatever you decide.

Re: Chase Pre-Approval...Need Advice!

SnackTrader — Thu, 28 Feb 2013 11:24:21 GMT

Forgot to mention your other option - wait 6 months. Do you really need new credit, or just want it? As long as you make on-time payments and keep the util within control there is no reason your score and overall profile won't be even better at that point in time.

Re: Chase Pre-Approval...Need Advice!

Anonymous — Thu, 28 Feb 2013 11:28:06 GMT

@SnackTrader wrote:
You're in a dangerous spot, OP. Your utilization right now is probably not much better than when your Discover reports just due to the multiple cards reporting a balance factor. However, then you have to ask yourself if there is anything else on your report potentially holding you back. I think this is going to be a personal decision, but honestly I would apply before taking a new account hit - especially if that new account will be reporting 45% util. That just seems like a red flag to me.

Which leads me to just cautioning you on 0% interest. It's great now, but please make sure you have the cash to pay it off. New accounts can often lead to new debt that isn't often warranted.

Wishing you good luck with whatever you decide.

I'm curious about 2 things and hope you can enlighten me.

If more than 1 account reports a balance, is that a bad thing?

For example my Chase reported a balance of $20 (2000 CL), and Wells Fargo will be reporting a balance of 90 (CL 10000). Should I completely pay off WF then?

About the 0% interest. How does that work exactly.

Let's say I swipe $1000 right away once I get the card.

I pay it off in next 11 months to clear the original amount I owed (assuming 0 APR 12 months).

On the 12th month, If it just happens that when the statement cuts, it is showing a balance of 500, does this mean I pay 1 month worth of interest for just $500? Or 12 months worth for $1500 or $1000?

Thanks!

Re: Chase Pre-Approval...Need Advice!

SnackTrader — Thu, 28 Feb 2013 11:42:00 GMT

More than 1 account reporting a balance will lower FICO score, all else being equal (note reporting a balance is much different than carrying a balance). So, if you want to maximize your score, you should have all cards report a $0 balance, except for one card. That card should report a balance between 1-9% of its total balance. The ideal percentage is likely different for each individual.

Your second question is a bit complicated. But the way you phrased it - you would pay $0 interest. Most lenders do not have retroactive interest on their bank cards, so carrying a balance during the introductory period and beyond will only begin accruing interest after the 0% interest period is up. BUT - you should always read the conditions of an individual account to figure that out. Store cards usually WILL charge retroactive interest.

In your example, you said that a card is "showing" a $500 balance. Having a balance report, as I mentioned before, is much different than leaving the balance unpaid after the grace period. If the $500 balance was left after the grace period in the 13th month then you would pay interest on only $500.

The reason I mentioned this to the OP is I generally recommend NEVER paying interest if you can help it. And people often charge more than they can pay back during a 0% introductory period due to the comfort of 0%. That's why banks offer it. It is very strategic, but as consumers we need to try to be smart about using 0% and similar offers to our advantage and not our detriment.

Re: Chase Pre-Approval...Need Advice!

Anonymous — Thu, 28 Feb 2013 11:54:57 GMT

what is the difference between reporting and carrying a balance?

Chase reported to the CRAs I still had a $20 balance (I paid the card in full, but swiped another $20 worth, so $20 is owed on current cycle).

Wells Fargo is gonna report a balance as well unless i absolutely not use it a few days before and until my statement cycle ends.

the total util is still below 9% for each card, and also below 9% for overall util.

do u know how much my fico score will be lowered by?

So the best way to do things is to pay the cards in full, and absolutely not use it a few days before statement cycle ends just so it reports $0 balance?

do banks card, or does it show on the credit report that balances are paid recently or it's been paid for a long time?

i usually pay my cards in full, but i continue swiping, paying, and swiping so sometimes it shows a very high balance (at one point $7950+ owed on 8000 CL) so that got my ultilization almost to the max.

Thank you so much for your posts. I am learning so much!

Re: Chase Pre-Approval...Need Advice!

SnackTrader — Thu, 28 Feb 2013 12:11:42 GMT

What you just mentioned with Chase and the $7950 is the example of reporting a balance. You only need to maximize utilization when you are preparing for new applications. I do the same thing as you and keep swiping and paying as I go in every month except those in which I am applying for new credit.

Carrying a balance is when you don't pay by your grace period an are charged interest. It doesn't sound like you do that, so no worries there.

There is no way to say how much a FICO will change. That differs significantly between individuals based on what else is on their reports.

Every credit report shows how much was paid in the previous month, but each creditor usually only reports the last payment that was made in my experience. So if you make a $5,000 payment on the 12th, and a $25 payment on the 14th and your statement closes on the 16th, it will usually report just $25 payment. That usually doesn't matter a whole lot, in my opinion sice it doesn't represent a very large sample for lenders to make determinations off of. But if a lender was to actively monitor your report, I suppose they could compile this info and make a conjecture about your spending habits on other cards.

Re: Chase Pre-Approval...Need Advice!

Anonymous — Thu, 28 Feb 2013 12:34:54 GMT

so basically the banks most likely won't deny a credit app just because someone paid down their balance "too quickly" right before applying for a new credit right?

i have a late payment from July 2006 (30-day late). this should fall off July 2013, right? should i hold off applying all credit until this falls off?

How many past months inquiries are factored in by banks when applying for credit? I know inquiries affect fico scores for only 12 months, but do banks only look at inquiries during past 12 months, or do they look at the full 24 months?

Is 8 inquiries on just 1 bureau (experian) for the past 24 months a tad too execessive? 5 are due to an auto loan app which were all inquired between 2/5 to 2/7 in 2013.

the other 2 inquiries fall off july/august 2013. should i wait for it to fall off then apply, or it shouldn't hurt me as much?

Thank you so much. U have been tremendous help!!!!

Re: Chase Pre-Approval...Need Advice!

jakemod1 — Thu, 28 Feb 2013 16:36:40 GMT

@SnackTrader wrote:
Creditcards.com doesn't offer pre-selected offers the way that lenders do with pre-screened tools. In fact, you don't even need to enter accurate information to get back results on creditcards.com. They just want to get everyone to apply through their site because they get revenue for doing so. Do not rely on their offers, IMHO.

You're in a dangerous spot, OP. Your utilization right now is probably not much better than when your Discover reports just due to the multiple cards reporting a balance factor. However, then you have to ask yourself if there is anything else on your report potentially holding you back. I think this is going to be a personal decision, but honestly I would apply before taking a new account hit - especially if that new account will be reporting 45% util. That just seems like a red flag to me.

Which leads me to just cautioning you on 0% interest. It's great now, but please make sure you have the cash to pay it off. New accounts can often lead to new debt that isn't often warranted.

Wishing you good luck with whatever you decide.

I plan to pay it off within the next few months. I always pay on time and more than the minimum. I even make multiple payments in a month.

Before coming here recently, I had no idea that my util was even affecting my score. I never worried about the card reporting a balance since I didn't know any better. I just figured that as long as I was making on time payments, I'll be good to go. I was actually wanting to see what other people thought about the Discover IT card when I got it (I tend to research anything new that comes my way), and it led me to this site, which in turn, opened my eyes up on ways you can maximize your credit score.

That's why I am surprised that Discover even sent me pre-approvals knowing what I know now. I had a couple cards reporting 90%+ util and all but two were reporting a balance when they approved me for $6,000. I guess it was a YMMV, but I can't help but wonder.

In any case, with the knowledge I acquired, I paid off all my previous credit cards and will pay off Discover in the next 4 to 6 months.

Thank you for your advice!

Re: Chase Pre-Approval...Need Advice!

jakemod1 — Thu, 28 Feb 2013 16:42:43 GMT

@SnackTrader wrote:
Forgot to mention your other option - wait 6 months. Do you really need new credit, or just want it? As long as you make on-time payments and keep the util within control there is no reason your score and overall profile won't be even better at that point in time.

I don't really need new credit, I just want it. I also just recently started getting into the cashback bandwagon. I only had the not-so-great WorldPoints through BoA. I wasn't even getting the full value of my points. I PC'd it to their Cash Rewards since then.

I'll probably wait until I get my util on my Discover down to at least below 20%. Like most here, I am just itching to app. Thanks to my recent approval, I caught the app bug.

Re: Chase Pre-Approval...Need Advice!

jakemod1 — Fri, 01 Mar 2013 01:10:49 GMT

I just checked my Experian Equivelancy Score: 769. I know its a FAKO score, but it can't be that far off from my actual FICO score, right?

I think I'm amping myself too much.

Re: Chase Pre-Approval...Need Advice!

Anonymous — Fri, 01 Mar 2013 01:54:07 GMT

Yea I think so too lol. The freedom isn't that hard to get. I would say any score above 700 has a pretty good chance of getting approved.

Re: Chase Pre-Approval...Need Advice!

jakemod1 — Fri, 01 Mar 2013 02:13:08 GMT

I couldn't resist any longer!!! So I app'ed for the Chase Freedom and......

APPROVED!!!

It was instant approval! I called to check my limit and it was $3,000. I wanted to really make it worthwhile (higher limit I was thinking), so I called and the CSR transferred me to their Lending Specialist. After aboout a five minute interview, they granted my request of $5,000! I am so happy right now! I'm having uncontrollable spasms! lol

Re: Chase Pre-Approval...Need Advice!

myjourney — Fri, 01 Mar 2013 02:21:19 GMT

@jakemod1 wrote:
I couldn't resist any longer!!! So I app'ed for the Chase Freedom and......

APPROVED!!!

It was instant approval! I called to check my limit and it was $3,000. I wanted to really make it worthwhile (higher limit I was thinking), so I called and the CSR transferred me to their Lending Specialist. After aboout a five minute interview, they granted my request of $5,000! I am so happy right now! I'm having uncontrollable spasms! lol

Congrats great card