topic Re: Hesitating between 2 cards - credit reporting in General Credit Topics

Hesitating between 2 cards - credit reporting

Anonymous — Thu, 31 Oct 2019 19:08:28 GMT

I am in the process of applying to a third CC. That would be the last one before gardening for 6months+ before applying probably to the CSP/CSR, assuming I will match their known requirements by that time.

I have a thin file :

BoA CR - 7mo - 800$ CL

Amex BCP - 3mo - 6k$ CL

I was therefore looking at some of my local Credit Unions, which tend to be more generous with CL, and help me have a stronger file when applying later down the road.

I have done some research and narrowed it down to 2 CU. But one of them only reports to Experian, and although their card would be slightly better for me, I was wondering to what extend that could be detrimental when applying to any of the Chase card that one of my three cards would only report to one bureau?

Re: Hesitating between 2 cards - credit reporting

Anonymous — Thu, 31 Oct 2019 19:48:38 GMT

if you think that card is good then go and get it, experian is the agency that gets pulled the most. you'll have enough stuff on all 3 reports eventually. if you think you might want to do a mortgage soon then it might be better to have history on all 3.

Re: Hesitating between 2 cards - credit reporting

FinStar — Thu, 31 Oct 2019 21:31:14 GMT

@Anonymous wrote:
if you think that card is good then go and get it, experian is the agency that gets pulled the most. you'll have enough stuff on all 3 reports eventually. if you think you might want to do a mortgage soon then it might be better to have history on all 3.

Link or source of such data?

Re: Hesitating between 2 cards - credit reporting

Anonymous — Thu, 31 Oct 2019 22:27:24 GMT

I would not mind about this reporting "issue" if I already had a well established credit history. If this card, due to the only to Experian reporting, is not going to help me a stronger file when applying with Chase later on, I do not want to use a 5/24 slot and get a HP for it. Chase will likely pull Experian+another bureau, I do not know if having a third card on only one of the credit reports they will pull be helpful or not.

Re: Hesitating between 2 cards - credit reporting

AllZero — Fri, 01 Nov 2019 01:27:14 GMT

^ Your logic is sound. Get a card that reports to all 3 bureaus.

Re: Hesitating between 2 cards - credit reporting

Anonymous — Fri, 01 Nov 2019 15:15:22 GMT

It’s not going to be detrimental that it only reports to one agency. But the question is whether or not it will be helpful. Obviously it can be helpful at Experian.

If Chase is counting it towards the 5/24 rule, they’re counting it towards your number of accounts. As you said, they will probably double pull you as well, considering you have a thin file. If the card only reports to Experian, then it’s not gonna help your scores at the other two agencies.

Your biggest problem as I see it, is your short account history. Chase likes to see a little track history. And you don’t have a lot to show and only time and potentially another card is going to improve those chances.

Six months from now I assume the age of your oldest account is only going to be 13 months. I would be very surprised if you are approved with a 13 month history only. And then having two accounts under 12 months? Doesn’t seem likely to me.

I think you should wait longer. But then again you haven’t given us a lot of information. What are your FICO scores? I assume your file is clean. Do you have any closed accounts on your credit report? Any loans?

Re: Hesitating between 2 cards - credit reporting

Anonymous — Fri, 01 Nov 2019 17:25:17 GMT

@Anonymous wrote:
It’s not going to be detrimental that it only reports to one agency. But the question is whether or not it will be helpful. Obviously it can be helpful at Experian.

If Chase is counting it towards the 5/24 rule, they’re counting it towards your number of accounts. As you said, they will probably double pull you as well, considering you have a thin file. If the card only reports to Experian, then it’s not gonna help your scores at the other two agencies.

Your biggest problem as I see it, is your short account history. Chase likes to see a little track history. And you don’t have a lot to show and only time and potentially another card is going to improve those chances.

Six months from now I assume the age of your oldest account is only going to be 13 months. I would be very surprised if you are approved with a 13 month history only. And then having two accounts under 12 months? Doesn’t seem likely to me.

I think you should wait longer. But then again you haven’t given us a lot of information. What are your FICO scores? I assume your file is clean. Do you have any closed accounts on your credit report? Any loans?

My scores are (FICO8) :
Exp : 719
Eq : 710

TU : 706

Util<1%, no late payments at all

No loans (at least not with any US financial institution), and no closed accounts.

Have been banking with chase for more than a year

Do you think that a third card with a decent limit could improve my chances ? The main reason for it was that BoA won't grant me any CLI before at least my accounts hits a year old

Re: Hesitating between 2 cards - credit reporting

Anonymous — Sun, 03 Nov 2019 03:44:38 GMT

Well the fact that you have a depository relationship with Chase may may the difference. You can check for in-branch pre-approvals, i believe....more familiar members help me out here.

Yeah, a 3rd card with a decent limit would help, but NOT if its brand new!! Do you have anyone with an older clean low utilization card that would allow you to become a joint owner? (keep in mind only some FIs allow joint.)

And you are talking about acquiring top-tier Chase cards, not the regular ones...IMHO, you need to wait and have more history, but you may wanna check for in-branch pre-approvals.

Note: Chase auto-CLIs are rare., so it would be nice to have a couple higher limit cards before the Chase, so you have a better chance of obtaining a higher SL and lower APR with Chase.

Also remember you will get a score boost when your youngest revolver turns a year old. May wanna time your app with that in mind.

Re: Hesitating between 2 cards - credit reporting

MrCreditInternational — Mon, 04 Nov 2019 09:30:04 GMT

All I know is that they won't approve you for CSR without having another card with a limit higher than 10k, so probably you'll be good with the CSP.

Regardless, I would strongly recommend that you go with the card that reports to all 3 CRA. Unless you've had a monthly direct deposit, I'd strongly recommend waiting 6 months after getting your last card.

Also since you bank with them already, why don't you check if you're pre-qualified online or in branch?

Re: Hesitating between 2 cards - credit reporting

Anonymous — Mon, 04 Nov 2019 18:50:15 GMT

@ Birdman7 : Thanks! I looked at the prequals but I do not have any yet, probably because my credit history is less than a year! Will probably be hard for me to be an AU, but will look into that

@ MrCreditInternational : My direct deposit is with Chase. I checked prequals online but do not have any so far. As I don't have a year long credit history I am for now on

just waiting anyway to have better odds later.

Regarding the 10K limit, I am counting on the x3 CLI with Amex that I will be able to request within the next few months.

As of the 6 month safety wait after getting my last card, were you talking about Chase or was it regarding the card I want apply to right now?

Re: Hesitating between 2 cards - credit reporting

MrCreditInternational — Mon, 04 Nov 2019 19:01:20 GMT

@Anonymous wrote:
@ Birdman7 : Thanks! I looked at the prequals but I do not have any yet, probably because my credit history is less than a year! Will probably be hard for me to be an AU, but will look into that

@ MrCreditInternational : My direct deposit is with Chase. I checked prequals online but do not have any so far. As I don't have a year long credit history I am for now on
just waiting anyway to have better odds later.

Regarding the 10K limit, I am counting on the x3 CLI with Amex that I will be able to request within the next few months.

As of the 6 month safety wait after getting my last card, were you talking about Chase or was it regarding the card I want apply to right now?

In that case, I would say apply in branch. The reason is if you get denied then your banker can call them and tell them that you have a healthy checking account and all, and might be able to get you recon without you calling.

I recommend waiting until your youngest card is 6 months old before getting a chase card. Also assuming you get that Amex 3x CLI, make sure you wait until it's reported on all your reports (it doesn't update instantaneously)

Finally, I would recommend applying for the freedom or the freedom unlimited now since you're more likely to get approved for those, especially that you have a checking account with them with direct deposit.

Re: Hesitating between 2 cards - credit reporting

Anonymous — Mon, 04 Nov 2019 20:19:39 GMT

Thanks for your answer! I would definitely prefer getting the FU as a third card now. My only concern was the fact that my oldest account is only 7 m.o. But I can try applying in a branch, or at least check if I have any prequal in branch.

Re: Hesitating between 2 cards - credit reporting

Anonymous — Tue, 05 Nov 2019 21:16:36 GMT

Went to a branch today, no prequals so far. I decided not to apply as the banker also advised me to wait for my oldest account to hit the 1 year mark.

I am just puzzled now : will a third card from another institution that I would get now be useful 6 months from now with Chase

Re: Hesitating between 2 cards - credit reporting

MrCreditInternational — Wed, 06 Nov 2019 06:27:17 GMT

3 (or 5) cards give you a boost for FICO and it shows banks that you can manage debt better than people with one or two cards. I think it's the threshold to be considered to have a thick file.

Also applying now for a 3rd card will help your AAoA later when you apply for chase in 6-12 months

Re: Hesitating between 2 cards - credit reporting

Anonymous — Wed, 06 Nov 2019 16:22:22 GMT

Respectfully disagree. How would it help his AAOA in 6 to 12 months when he applies for a Chase card?

It’s an average, every time you add a new card it gets lower. Consider this, if his average age now were seven months and he got another and it brought him down to five months, then six months from now his average age would be 11 months versus the 13 months it would be if he did not.

So adding a third card now would LOWER his AAOA, both now and later. As a matter fact, anytime you add a new card, it lowers AAOA.

However, with that said, I am a proponent of getting multiple cards early because it gives you more weight at the beginning of your credit file to counterbalance the cards you may get MANY years down the line.

Getting several cards early on in my opinion is a great idea. 10 years from now they will be very helpful because any new cards will not affect his AAOA as much as they otherwise would.

But in the short term it’s only going to hurt him by lowering his AAOA, and more importantly it’s going to reset his AOYA, which will then require him to wait another 12 months optimally before he gets his score boost for the youngest account turning 12 months old so he has the best chance with his app for the chase card.

In sum, applying for a third and/or subsequent cards now or in the near future will help his AAOA years down the line when it will cause newer cards to have less effect lowering his AAOA, but not in 6 to 12 months down the line when may attempt a Chase.

Besides, AAOA is a small factor overall. IMHO, Chase is going to care more about the age of your youngest account then they will your average age accounts on your young file.

I would wait 12 months just like the banker said from the age of your youngest account. If you open another one now, you’ve got to wait another 12 months to give yourself the best chance. You’re better off to just wait till your youngest account is 12 months old and get your Chase and another card or two if you like. But no more than that or you risk AA from Chase.

Re: Hesitating between 2 cards - credit reporting

MrCreditInternational — Wed, 06 Nov 2019 19:27:15 GMT

@Anonymous wrote:
Respectfully disagree. How would it help his AAOA in 6 to 12 months when he applies for a Chase card?

It’s an average, every time you add a new card it gets lower. Consider this, if his average age now were seven months and he got another and it brought him down to five months, then six months from now his average age would be 11 months versus the 13 months it would be if he did not.

So adding a third card now would LOWER his AAOA, both now and later. As a matter fact, anytime you add a new card, it lowers AAOA.

However, with that said, I am a proponent of getting multiple cards early because it gives you more weight at the beginning of your credit file to counterbalance the cards you may get MANY years down the line.

Getting several cards early on in my opinion is a great idea. 10 years from now they will be very helpful because any new cards will not affect his AAOA as much as they otherwise would.

But in the short term it’s only going to hurt him by lowering his AAOA, and more importantly it’s going to reset his AOYA, which will then require him to wait another 12 months optimally before he gets his score boost for the youngest account turning 12 months old so he has the best chance with his app for the chase card.

In sum, applying for a third and/or subsequent cards now or in the near future will help his AAOA years down the line when it will cause newer cards to have less effect lowering his AAOA, but not in 6 to 12 months down the line when may attempt a Chase.

Besides, AAOA is a small factor overall. IMHO, Chase is going to care more about the age of your youngest account then they will your average age accounts on your young file.

I would wait 12 months just like the banker said from the age of your youngest account. If you open another one now, you’ve got to wait another 12 months to give yourself the best chance. You’re better off to just wait till your youngest account is 12 months old and get your Chase and another card or two if you like. But no more than that or you risk AA from Chase.

Completely agree with you

I guess I wasn't clear enough

Thanks for the thorough explanation!