topic Re: 6 months history - need help with my plan in Credit Cards

6 months history - need help with my plan

Anonymous — Sat, 15 Mar 2014 11:37:31 GMT

I am 18. In a little over a month, I will have 6 months of history with a Capital One Journey card. I currently have a $500 limit but it is due to increase to $750 as part of Credit Steps. I have also seen several recent reports of the promised $250 increases turning into $2000+ increases, which I am hoping for.

My income is $30,000 per year and I am not a student.

I have identified several cards that I wish to obtain:

Discover it (5% rotating categories)
Chase Freedom (5% rotating categories)
Citi Dividend (5% rotating categories)
Amex BCE (Signup bonus, Shoprunner and Prime, Costco use)
Amex PRG (Signup bonus)
Bank of America Better Balance (Easy money)
Sallie Mae (Good 5% categories)
Any US Bank card, with the intent of changing it to a Cash+ once it reaches a $5K limit
Capital One Quicksilver (1.5% on all. I am aware I can change my Journey into this, but I would be losing out on the signup bonus. I currently earn 1.25% with the Journey, which will remain my all-purpose card for spending that doesn't fit in the special categories of other cards. Even if I have to wait 2 years to qualify for this, I have determined that the $100 bonus is more than the extra 0.25% for my anticipated spending in those 2 years.)

My goal is to obtain these cards as quickly as possible. I understand the limits will be low. My thinking is that I can always obtain increases later, with the cost being at most a hard pull that will be off my report in 2 years and not used in FICO scoring in 1 year, but if I wait to apply in the hopes of receiving a higher limit, the time I've waited is lost forever.

The concrete part of my plan so far is:

Wait until the 6th statement reports to all 3 CRAs. I will ensure my utilization is under 10% for this statement.
I will apply for Discover first. I have seen many reports here that with a profile such as mine, Discover is almost a guaranteed approval.
I will then apply for an Amex PRG. I have read that with 6 months of history, this is also nearly a guaranteed approval. My intent for this is to get in the door with Amex and also to receive the signup bonus. I do not intend to keep this card past the first year.
Following the approval of the PRG, I will apply for the BCE. I expect this to be denied for not enough history, but I have read that it will be a single pull for both cards. This means there is no downside to trying and only the possibility (however slight) of an upside. If this results in a denial, I will monitor my reports and apply after each Amex soft pull as I understand Amex will only hard pull if approved.

I believe this part of the plan is solid and likely to result in approvals, but I am open to advice.

I am also looking for advice on what to do next. Are any other cards I listed possible to obtain with only 6 months of history? If not, how long should I wait on each of them? I do not mind making calls for reconsideration. Also, I do not have a banking relationship with any of these companies. Remember that my goal is to obtain each of them as quickly as possible, even with $500 limits.

I am tempted to apply for the Chase Freedom at 6 months, but reports are mixed. I have gathered that around 2012, 12 months of history was the minimum with no (or few) exceptions. Since then, it seems Chase has loosened the requirements but reports are still mixed. I am again open to advice. I do not mind making several reconsideration calls, but are my ultimate chances of approval reasonable?

Re: 6 months history - need help with my plan

Creditaddict — Sat, 15 Mar 2014 14:31:07 GMT

@Anonymous wrote:
I am 18. In a little over a month, I will have 6 months of history with a Capital One Journey card. I currently have a $500 limit but it is due to increase to $750 as part of Credit Steps. I have also seen several recent reports of the promised $250 increases turning into $2000+ increases, which I am hoping for.

My income is $30,000 per year and I am not a student.

I have identified several cards that I wish to obtain:

Discover it (5% rotating categories)
Chase Freedom (5% rotating categories)
Citi Dividend (5% rotating categories)
Amex BCE (Signup bonus, Shoprunner and Prime, Costco use)
Amex PRG (Signup bonus)
Bank of America Better Balance (Easy money)
Sallie Mae (Good 5% categories)
Any US Bank card, with the intent of changing it to a Cash+ once it reaches a $5K limit
Capital One Quicksilver (1.5% on all. I am aware I can change my Journey into this, but I would be losing out on the signup bonus. I currently earn 1.25% with the Journey, which will remain my all-purpose card for spending that doesn't fit in the special categories of other cards. Even if I have to wait 2 years to qualify for this, I have determined that the $100 bonus is more than the extra 0.25% for my anticipated spending in those 2 years.)
My goal is to obtain these cards as quickly as possible. I understand the limits will be low. My thinking is that I can always obtain increases later, with the cost being at most a hard pull that will be off my report in 2 years and not used in FICO scoring in 1 year, but if I wait to apply in the hopes of receiving a higher limit, the time I've waited is lost forever.

The concrete part of my plan so far is:

Wait until the 6th statement reports to all 3 CRAs. I will ensure my utilization is under 10% for this statement.
I will apply for Discover first. I have seen many reports here that with a profile such as mine, Discover is almost a guaranteed approval.
I will then apply for an Amex PRG. I have read that with 6 months of history, this is also nearly a guaranteed approval. My intent for this is to get in the door with Amex and also to receive the signup bonus. I do not intend to keep this card past the first year.
Following the approval of the PRG, I will apply for the BCE. I expect this to be denied for not enough history, but I have read that it will be a single pull for both cards. This means there is no downside to trying and only the possibility (however slight) of an upside. If this results in a denial, I will monitor my reports and apply after each Amex soft pull as I understand Amex will only hard pull if approved.
I believe this part of the plan is solid and likely to result in approvals, but I am open to advice.

I am also looking for advice on what to do next. Are any other cards I listed possible to obtain with only 6 months of history? If not, how long should I wait on each of them? I do not mind making calls for reconsideration. Also, I do not have a banking relationship with any of these companies. Remember that my goal is to obtain each of them as quickly as possible, even with $500 limits.

I am tempted to apply for the Chase Freedom at 6 months, but reports are mixed. I have gathered that around 2012, 12 months of history was the minimum with no (or few) exceptions. Since then, it seems Chase has loosened the requirements but reports are still mixed. I am again open to advice. I do not mind making several reconsideration calls, but are my ultimate chances of approval reasonable?

I like your plan and then:

Skip Citi as the rewards are really not good on trade (value.

usbank is pretty conservative... if you bank with them then maybe put back in or else I would wait till a year.

bofa I like but not really all that much the one you picked.

I think Sallie mae is great rewards put to use I just don't like Barclay but for some they are good to so go ahead and hit them after your first list.

throw barclay and usbank at the bottom if you want if you get approved or can recon fab if not wait till year.

Re: 6 months history - need help with my plan

coldnmn — Sat, 15 Mar 2014 14:46:23 GMT

@Creditaddict wrote:
@Anonymous wrote:
I am 18. In a little over a month, I will have 6 months of history with a Capital One Journey card. I currently have a $500 limit but it is due to increase to $750 as part of Credit Steps. I have also seen several recent reports of the promised $250 increases turning into $2000+ increases, which I am hoping for.

My income is $30,000 per year and I am not a student.

I have identified several cards that I wish to obtain:

Discover it (5% rotating categories)
Chase Freedom (5% rotating categories)
Citi Dividend (5% rotating categories)
Amex BCE (Signup bonus, Shoprunner and Prime, Costco use)
Amex PRG (Signup bonus)
Bank of America Better Balance (Easy money)
Sallie Mae (Good 5% categories)
Any US Bank card, with the intent of changing it to a Cash+ once it reaches a $5K limit
Capital One Quicksilver (1.5% on all. I am aware I can change my Journey into this, but I would be losing out on the signup bonus. I currently earn 1.25% with the Journey, which will remain my all-purpose card for spending that doesn't fit in the special categories of other cards. Even if I have to wait 2 years to qualify for this, I have determined that the $100 bonus is more than the extra 0.25% for my anticipated spending in those 2 years.)
My goal is to obtain these cards as quickly as possible. I understand the limits will be low. My thinking is that I can always obtain increases later, with the cost being at most a hard pull that will be off my report in 2 years and not used in FICO scoring in 1 year, but if I wait to apply in the hopes of receiving a higher limit, the time I've waited is lost forever.

The concrete part of my plan so far is:

Wait until the 6th statement reports to all 3 CRAs. I will ensure my utilization is under 10% for this statement.
I will apply for Discover first. I have seen many reports here that with a profile such as mine, Discover is almost a guaranteed approval.
I will then apply for an Amex PRG. I have read that with 6 months of history, this is also nearly a guaranteed approval. My intent for this is to get in the door with Amex and also to receive the signup bonus. I do not intend to keep this card past the first year.
Following the approval of the PRG, I will apply for the BCE. I expect this to be denied for not enough history, but I have read that it will be a single pull for both cards. This means there is no downside to trying and only the possibility (however slight) of an upside. If this results in a denial, I will monitor my reports and apply after each Amex soft pull as I understand Amex will only hard pull if approved.
I believe this part of the plan is solid and likely to result in approvals, but I am open to advice.

I am also looking for advice on what to do next. Are any other cards I listed possible to obtain with only 6 months of history? If not, how long should I wait on each of them? I do not mind making calls for reconsideration. Also, I do not have a banking relationship with any of these companies. Remember that my goal is to obtain each of them as quickly as possible, even with $500 limits.

I am tempted to apply for the Chase Freedom at 6 months, but reports are mixed. I have gathered that around 2012, 12 months of history was the minimum with no (or few) exceptions. Since then, it seems Chase has loosened the requirements but reports are still mixed. I am again open to advice. I do not mind making several reconsideration calls, but are my ultimate chances of approval reasonable?
I like your plan and then:
Skip Citi as the rewards are really not good on trade (value.
usbank is pretty conservative... if you bank with them then maybe put back in or else I would wait till a year.
bofa I like but not really all that much the one you picked.
I think Sallie mae is great rewards put to use I just don't like Barclay but for some they are good to so go ahead and hit them after your first list.
throw barclay and usbank at the bottom if you want if you get approved or can recon fab if not wait till year.

I agree about US Bank put it way to the bottom. If they give you a card you will have a very hard time increasing your credit limit for a very long time. I would say wait at least a year after having cards with fairly good credit limits before applying. Welcome to the forum and thanks for sharing your plan.

Re: 6 months history - need help with my plan

Anonymous — Sat, 15 Mar 2014 15:46:33 GMT

Thanks. This input is great.

What is the issue with the Dividend's redemption value? The only downside I see is the increments.

I will wait on US Bank for sure, as I have seen the reports of them being conservative. Are there any other cards on my list that I would be likely to get at 6 months? Any advice on the Chase Freedom? Would I be likely to get the Sallie Mae Barclays card at that time? I have heard Barclays is sensitive to new accounts and inquiries and I would be opening at least 2 accounts (Discover and Amex), so wouldn't it be better to wait until around a year for them?

Re: 6 months history - need help with my plan

Anonymous — Sat, 15 Mar 2014 15:55:58 GMT

@Anonymous wrote:
Thanks. This input is great.

What is the issue with the Dividend's redemption value? The only downside I see is the increments.

I will wait on US Bank for sure, as I have seen the reports of them being conservative. Are there any other cards on my list that I would be likely to get at 6 months? Any advice on the Chase Freedom? Would I be likely to get the Sallie Mae Barclays card at that time? I have heard Barclays is sensitive to new accounts and inquiries and I would be opening at least 2 accounts (Discover and Amex), so wouldn't it be better to wait until around a year for them?

I would definitely get in with Discover. They were the first to give me a shot and have been great to work with. The Chase Freedom is a great card as well. a lot like the Discover It card. Barclay does seem to be sensitive to new accounts, but I have opened 3 cards in 3 weeks before I applied for the Sallie Mae card, and I was instantly approved, so it has a lot to do with your profile as well. I know you mentioned AMEX too. I would definitely get in with them with either a charge card or a revolving card. Charge are sometimes easier to get approved for with a short history. Good luck with everything! And welcome aboard!

Re: 6 months history - need help with my plan

coldnmn — Sat, 15 Mar 2014 16:01:07 GMT

@Anonymous wrote:
Thanks. This input is great.

What is the issue with the Dividend's redemption value? The only downside I see is the increments.

I will wait on US Bank for sure, as I have seen the reports of them being conservative. Are there any other cards on my list that I would be likely to get at 6 months? Any advice on the Chase Freedom? Would I be likely to get the Sallie Mae Barclays card at that time? I have heard Barclays is sensitive to new accounts and inquiries and I would be opening at least 2 accounts (Discover and Amex), so wouldn't it be better to wait until around a year for them?

In my opinion go for two cards Chase Freedom and Discover. I would garden them at least 6 months if approved. Your credit file is thin and your age is working against you. You will have to gain trust through a credit journey not a race to get credit. Good Luck!

Re: 6 months history - need help with my plan

celluloid17 — Sat, 15 Mar 2014 17:50:26 GMT

I wish I had such a clear and focused credit plan when I was 18!

I would make Amex your first priority for backdating purposes and then maybe try for the Quicksilver because you already have an established relationship with Capital One that might make for an easier approval. Chase Freedom and Discover It have very similar rotating categories, so in a way, they can be kind of redundant. Check out the rotating categories calendar for any rotating 5% card to make sure it's something you can get use out of all year round, otherwise what you essentially have is a 1% card. Discover has AMAZING customer service, but Chase might be a bit more versatile in that the UR points you earn are transferable to other cards like CSP. When you're sure you can get approved, go for the Sallie Mae Barclaycard. Hands down, it's a terrific value for buying essentials like gas and groceries and you don't have to deal with quarterly sign-ups or limitations and no annual fee (unlike the Amex BCP, which is otherwise a great option in its own right)!

Just a word of caution, if you have to spend more than you normally would just to meet a spending limit, then it may not be the best card for your needs no matter how enticing the spending bonus is!

Re: 6 months history - need help with my plan

Anonymous — Sat, 15 Mar 2014 18:26:32 GMT

Thanks.

My current plan for the 6 month mark is, in this order: Discover it, Amex PRG (followed by an attempt at a BCE which I expect to be denied), Chase Freedom.

I might think about trying for Sallie Mae after those 3. Sallie Mae does student loans so you would think their credit card would be designed for limited history, with a low limit.

Other than this, any other suggestions on anything I should go for at the same time? For the rest of the cards, I expect to wait 3-6 months (I will do more research on each card and determine the likelihood of approval for a certain time, before applying).

Also, I don't think Capital One really takes relationships into account, at least not anywhere I've read. They consider the Quicksilver to be an "excellent credit" card and their criteria for that is 3 years of credit history. Supposedly 3 years isn't concrete and others have gotten it with less. I am thinking waiting for 1 year of history is probably best for that. The logic is, they will only provide a CLI every 6 months, and I assume the CLI they give me next month will be the maximum credit they are willing to extend at that time. 6 months after that CLI, they may be willing to extend more, at which point I would have a chance for the Quicksilver. Any flaws in this logic?

Re: 6 months history - need help with my plan

Crisis — Sat, 15 Mar 2014 18:29:43 GMT

@Anonymous wrote:
Thanks.

My current plan for the 6 month mark is, in this order: Discover it, Amex PRG (followed by an attempt at a BCE which I expect to be denied), Chase Freedom.

I might think about trying for Sallie Mae after those 3. Sallie Mae does student loans so you would think their credit card would be designed for limited history, with a low limit.

Other than this, any other suggestions on anything I should go for at the same time? For the rest of the cards, I expect to wait 3-6 months (I will do more research on each card and determine the likelihood of approval for a certain time, before applying).

Also, I don't think Capital One really takes relationships into account, at least not anywhere I've read. They consider the Quicksilver to be an "excellent credit" card and their criteria for that is 3 years of credit history. Supposedly 3 years isn't concrete and others have gotten it with less. I am thinking waiting for 1 year of history is probably best for that. The logic is, they will only provide a CLI every 6 months, and I assume the CLI they give me next month will be the maximum credit they are willing to extend at that time. 6 months after that CLI, they may be willing to extend more, at which point I would have a chance for the Quicksilver. Any flaws in this logic?

Good luck on your apps. I'm sorry, I'm not well versed in card app strategy, so I'm not of use beside well wishes.

Re: 6 months history - need help with my plan

celluloid17 — Sat, 15 Mar 2014 18:50:01 GMT

@Anonymous wrote:

Also, I don't think Capital One really takes relationships into account, at least not anywhere I've read. They consider the Quicksilver to be an "excellent credit" card and their criteria for that is 3 years of credit history. Supposedly 3 years isn't concrete and others have gotten it with less. I am thinking waiting for 1 year of history is probably best for that. The logic is, they will only provide a CLI every 6 months, and I assume the CLI they give me next month will be the maximum credit they are willing to extend at that time. 6 months after that CLI, they may be willing to extend more, at which point I would have a chance for the Quicksilver. Any flaws in this logic?

Sorry, I'm not especially versed on Capital One's approval criteria. I know they have two versions of the Quicksilver, one with an annual fee for those with "average" credit and one with no AF for excellent credit. Best of luck on your credit journey!

Re: 6 months history - need help with my plan

Anonymous — Sat, 15 Mar 2014 19:09:04 GMT

A lot of great advice given already. I think you would have a pretty good shot at getting the Freedom and would be a really good starting card for you along with a Discover IT. Now don't be afraid to app for the Freedom, usually Chase is really great with recons and if you explain your situation you have a really good chance at getting approved.

I only have 6 months of credit history and have gotten all the cards in my signature.

Re: 6 months history - need help with my plan

Anonymous — Sat, 15 Mar 2014 19:35:39 GMT

Thanks. You only have 6 months of history with all those? That gives me hope my BCE application could be approved.

Re: 6 months history - need help with my plan

Anonymous — Sat, 15 Mar 2014 19:47:40 GMT

@Anonymous wrote:
Thanks. You only have 6 months of history with all those? That gives me hope my BCE application could be approved.

Yes, BCE is not as hard to get as people make it out to be. If your EX score is north of 690 you have a really good chance of getting it. You may not get as high a limit, but I think approval odds are in your favor.

I had a EX score of 720 and applied for the BCE the exact day I hit my 6 month credit mark and was instantly approved for it and the PRG.

PM if you would like help with your credit strategy. I would be more than happy to help you.

Re: 6 months history - need help with my plan

jesseh — Sun, 16 Mar 2014 01:20:24 GMT

Twas' situation is similar to yours, it's great to see how well it's goin for him!

http://ficoforums.myfico.com/t5/Credit-Cards/Credit-Suggestions/m-p/2817071

Re: 6 months history - need help with my plan

Anonymous — Sun, 16 Mar 2014 12:23:44 GMT

Thanks, everyone. I've got a better idea of what to do now and I will post the results next month.