topic Re: Scared to apply in Credit Cards

Scared to apply

Anonymous — Tue, 17 Jun 2008 04:16:29 GMT

I want a new credit card and am still contemplating what to do. I am subscribed to score watch and my EQ score is currently 728. One of the things going positive in my power report is: You're not actively looking for credit. Your applications for credit in the past year 0 inquiries. I really want to improve my FICO score to reach at least 760 and be in the upper bracket.

Since my last power report when it reported 718, my score has went up to 728 due to paying off some debt on my other credit card. The CL is 11k and I currently owe roughly $2,400. Under the FICO score simulator, I did a test of what would happen if I applied for and received a new card with a CL of 10k and it said my score would raise. I do not necessarily need the card, I am fine getting by day to day on one card. I see a lot of rules that say "Apply for and open new credit accounts only as needed" ; "Don't open new credit cards that you don't need. Unless you are establishing a credit history, don't apply for credit cards you don't need just to increase your available credit. This approach could backfire and actually lower your score." So right now I am not sure what I should do.

If I did apply for a new card I kind of wanted an AMEX but with all these threads about how stingy and uptight they can be, it is shying me away. I then looked at the BoA AMEX card. Another thing I am weary on is what my APR would be. It says the card will offer either 9.99% or 15.99%. I'm not sure if I should apply or not for any card in general and if I do, if my score would result in a 9.99% or 15.99%. Not sure if I do apply, should I wait till I get my util down some more to improve my score and it looks better in general? All opinions are appreciated and thanks in advance.

Message Edited by Nmbr1ballr on 06-17-2008 12:16 AM

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Anonymous — Wed, 01 May 2013 03:51:13 GMT

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 04:59:38 GMT

Well I'm kind of a really picky person I don't know why but I really wanted a BoA or AMEX card. Thanks for your help though. I do appreciate all imput. Anyone else care to give me their opinion?

Re: Scared to apply

aftermath — Tue, 17 Jun 2008 05:17:06 GMT

@Anonymous wrote:
Consider Penfed w/that EQ score and no inquiries.

What he said. Penfed is a guaranteed EQ pull. Everyone else is pretty much random, except Amex and Boa which are like 90% guaranteed EX pulls.

Congrats on a high EQ score, but the 2 cards you want most are known for pulling EX.

Don't let your pickiness get the best of you. What can BOA or Amex offer you that Penfed can't? In actuality, Penfed can offer you everything they can plus more. And in most cases, higher credit lines and hassle free CLIs.

Just because the card looks shiny and has a known name on it doesn't necessarily mean it's a better choice. Just imagine that all credit cards were just blank white with no names on it or any flashy designs. The deciding factor would be customer service and perks would it not? Would you still want an Amex or BOA or would you go with something that offers you so much more in so many ways.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 05:39:46 GMT

Well my main issue at hand isn't really what card to get. Its more of the principle of what will happen if I get a new card to my current score and what kind of apr do you guys think I would receive when a card does offer to apr's depending on credit history. I'm not real worried about getting a particular card but more so if FICO says don't open credit unless you need it etc and the simulator says if you do your score will increase, I'm hesitant on opening any card in general. They are contradicting themselves. And by opening a new card, it will take away from one of the positive things helping my score which is not actively seeking credit.

Message Edited by Nmbr1ballr on 06-17-2008 01:39 AM

Re: Scared to apply

aftermath — Tue, 17 Jun 2008 05:43:17 GMT

Penfed will work with you according to your needs. They don't just throw rules at you like other CCC do.

And besides, you want to utilize your EQ correct? Like I stated earlier, Penfed is a guaranteed EQ pull.

But it's purely up to you on which route you want to go.

Penfed gave me a $30k credit limit while BoA and Amex gave me $5k.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 05:46:06 GMT

I don't think your quite understanding my question. I don't care what company pulls what. Won't opening a new card in general hurt my credit score or help because it is a new account, I am going to receive an inquiry, and I will lose one of the positive things helping my score.

Re: Scared to apply

aftermath — Tue, 17 Jun 2008 05:54:28 GMT

@Anonymous wrote:
I don't think your quite understanding my question. I don't care what company pulls what. Won't opening a new card in general hurt my credit score or help because it is a new account, I am going to receive an inquiry, and I will lose one of the positive things helping my score.

Sorry, yes I misunderstood your question.

Yes, obtaining a new account will initially hurt your score, but after a few months of good payment and low utilization, your score will only improve. If you've done everything you can at this point with your credit and haven't noticed an increase, then you are at your current bucket cap. Your credit report is hungry for new activity.

You're can't baby your inquiries forever.

Re: Scared to apply

haulingthescoreup — Tue, 17 Jun 2008 11:05:23 GMT

What aftermath said. If you don't go ape-wild, your scores might well be back where they started as early as the second or third month. If you get an AmEx, they frequently don't even show up on your reports for several months, showing the opening date, so you might not see a dip at all. Some people's scores grow from the get-go, because their particular credit profiles "needed" another revolving account.

With the cards you're looking at, it's worth paying to pull your EX FICO score. (First Google fico discount code coupon to get a code for at least 15%.) Probably it's within 15 points or so of your EQ, but you never know. Some are way different.

As long as your EX is 710-720 or above, and you have no collections, BK's, unpaid charge-offs, or baddies within the last two years, you should be fine. I wouldn't worry about land mines. If you want an AmEx credit card (the Blues, HHonors, etc.), do a lot of research to decide the best deal. For instance, Blue Cash can be great if you run a huge amount of money through it every year; otherwise it's pretty eh.

If you'd rather the inq be pulled from your EQ report (for whatever reason), take a look at Citi or Chase, although both of them are pretty variable as to which CRA they pull. The reason that you got so much feedback about PenFed is that they're an EQ puller, and that's the one you listed.

And finally, if you're working your credit right, you won't care about the APR, because you won't be carrying balances anyway! The only balance I carry on a card is a 0% BT card, and I'm paying it down $250 every two weeks. CCC's don't get a penny of my money.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 12:35:35 GMT

BofA has a preapproval site. Check out what they will offer you without actually applying.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 12:42:54 GMT

@Anonymous wrote:
Well I'm kind of a really picky person I don't know why but I really wanted a BoA or AMEX card. Thanks for your help though. I do appreciate all imput. Anyone else care to give me their opinion?

Both BOA and Amex are pretty generous with the initial CLs and CLIs. Before I had any prime cards at all, Amex approved me for $8900.

I ended up financing a new car through BOA. They called a couple days later and said my inquiry was also good what turned out to be a $20,000 CL in a month or so.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 15:39:03 GMT

So I just went to BoA website and clicked the pre-approval button. It came up with 3 cards, one of them being the American Express card I was talking about. Do you think with my EQ score and my EX score SHOULD be around that as I have no lates or anything, I will get the 9.99% or 15.99% apr. And as you said, I don't plan on carrying a balance anyway but you never know what might come up where you may need to.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 15:42:27 GMT

Nmbr1ballr wrote:
So I just went to BoA website and clicked the pre-approval button. It came up with 3 cards, one of them being the American Express card I was talking about. Do you think with my EQ score and my EX score SHOULD be around that as I have no lates or anything, I will get the 9.99% or 15.99% apr. And as you said, I don't plan on carrying a balance anyway but you never know what might come up where you may need to.

Yep, it's not that difficult to qualify for the 9.99% rate on that card. That's the rate I got, and my EX was around 730-ish when I applied.

Good luck, and let us know what you decide.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 15:44:44 GMT

@Anonymous wrote:

@Anonymous wrote:
So I just went to BoA website and clicked the pre-approval button. It came up with 3 cards, one of them being the American Express card I was talking about. Do you think with my EQ score and my EX score SHOULD be around that as I have no lates or anything, I will get the 9.99% or 15.99% apr. And as you said, I don't plan on carrying a balance anyway but you never know what might come up where you may need to.

Yep, it's not that difficult to qualify for the 9.99% rate on that card. That's the rate I got, and my EX was around 730-ish when I applied.

Good luck, and let us know what you decide.

I qualified for the preferred rate on the World Points MC with a 680-ish EX.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 16:43:52 GMT

Awww, so I bit the bullet and hit the accept button. It then took me to another page where I had to fill out income, housing etc. I was worried that after filling that out that I might not receive the credit line the pre-approval said I would. I continued, sent the application. Next thing it says is

"Thank you for submitting a credit card application.

Your business is appreciated and careful consideration is being given to your request, but an instant decision cannot be provided at this time.

You will receive a written response within the next 30 days."

Now I'm worried. How can I be pre-approved but at the same time not get an immediate response?

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 16:47:30 GMT

When I go to the get a credit card section of MyFICO, you know how it says what cards fall under what category of FICO score. The card I applied for is under excellent with a score of 740+ which is lower than my score. Now I'm going to be paranoid for the next 30 days.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 16:57:18 GMT

Nmbr1ballr wrote:
Awww, so I bit the bullet and hit the accept button. It then took me to another page where I had to fill out income, housing etc. I was worried that after filling that out that I might not receive the credit line the pre-approval said I would. I continued, sent the application. Next thing it says is

"Thank you for submitting a credit card application.

Your business is appreciated and careful consideration is being given to your request, but an instant decision cannot be provided at this time.

You will receive a written response within the next 30 days."

Now I'm worried. How can I be pre-approved but at the same time not get an immediate response?

This is a standard response for BofA. Call a credit analyst this afternoon, and you'll likely get an instant decision after speeaking to them. You can find the number in the Backdoor Numbers thread stickied at the top of the forum.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 17:08:31 GMT

@Anonymous wrote:

@Anonymous wrote:
Awww, so I bit the bullet and hit the accept button. It then took me to another page where I had to fill out income, housing etc. I was worried that after filling that out that I might not receive the credit line the pre-approval said I would. I continued, sent the application. Next thing it says is

"Thank you for submitting a credit card application.

Your business is appreciated and careful consideration is being given to your request, but an instant decision cannot be provided at this time.

You will receive a written response within the next 30 days."

Now I'm worried. How can I be pre-approved but at the same time not get an immediate response?
This is a standard response for BofA. Call a credit analyst this afternoon, and you'll likely get an instant decision after speeaking to them. You can find the number in the Backdoor Numbers thread stickied at the top of the forum.

I called the number and spoke to a woman who approved me. The card will be received in the mail in 5-7 days. So I'm happy I was approved, the only thing is the credit line wasn't as high as in the pre-approval page. It said I would be approved for $7,500 but was approved for $5,000 after calling in. Overall I am happy, waiting to see how this affects my score in the short term as well as to increase my limit on both cards in the long term. Thanks to everyone who posted here to give me confidence lol.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 17:27:41 GMT

Congratulations! I'm glad it worked out for you in the end.

BofA is very generous with CLI, btw. I would wait about 3 months and then call a credit analyst again and ask for the $7500 you were preapproved for.

Re: Scared to apply

Anonymous — Tue, 17 Jun 2008 17:30:42 GMT

Awesome, thanks. I forgot to ask what APR I was going to be receiving so I guess I'll have to wait and see.