App Spree post Mortgage funding - order of applications?

[Anonymous]

Hi, we're an active duty military family looking for some advice. My husband and I have been in the garden for around 3 years, he came out to apply for our 1st mortgage (VA Loan) which funded last week.

We think this is the moment to apply, hopefully before the mortgage reports. We are also about to start multiple home improvement projects.

General Details (both of us)

Excellent credit scores (these are the ones we can see through our credit cards)

Equifax FICO 9 is 848 (me); 828 (him)

Experian FICO 3 is 819 (me)

Experian FICO 8 is 830 (him)

TransUnion FICO 8 is 825 (me);  849 (him) 

Very low debt to credit ratio & utilization (assuming mortgage doesn't count here)

We pay current balances off every month

He just added the VA Loan with a 2.375% rate, I'm on the deed, not the loan.

Current cards (him)

NFCU Visa Signature CashRewards (24k) - with me as an AU

NFCU Checking LOC (15k)

USAA AmEx (17k) - doesn't really count as an AmEx for benefits. used to be a rewards card, now just cash for points

Discover It (11k) - he wants to restart CLI requests but doesn't know if that should wait until after this round of applications. I think yes.

Current Cards (me) - he's an AU on all my cards

USAA Rewards Signature Visa (19,800k) - from when I was working

BofA BankAmericard Rewards World Mastercard  (17,900k) - from when I was working

NFCU Visa Signature CashRewards (24k)

(opened in 2017 as a SAHM w/ a very low CL, added household income & reconned up to $24K) - check my old posts if interested).

NFCU Checking LOC (15k)

Current Needs

He's looking to apply for either a LightStream or SoFi home improvement personal loan (probably asking for around $75K)

We're both looking to apply for nicer/premiere credit cards to get some purchasing benefits. Our cards are pretty basic.

Cards everyone says to get - but don't make sense to us during Covid b/c no travel

AmEx Gold - of these we would consider this one because 4k of groceries & dining

AmEx Plat - we don't travel enough, his TDY days are limited plus we have a toddler, personal travel is at least 10 years away.

Chase Sapphire Unlimited -  

Cards that make sense for our immediate stock a new house & home improvement needs:

Chase Freedom Unlimited - for the 5% on groceries up to $12k for the first year AND the 0% APR on purchases for the first 15 months.

AmEx Blue Cash Preferred - for the ongoing 6% on groceries for 6k per year (for after we use up the Chase Freedom benefit) + 6% cashback on streaming and 3% cashback on gas. We also think we can waive the annual fee because we're military)

Lowe's Advantage Card - when it comes time to buy tools & appliances

We think today is the day to start applying as we're about 6 days past funding and time is ticking. We're expecting contractor numbers today. Do we apply for the personal loan before the credit cards? 

Are there other cards you think we should consider? Alliant? Ikea?

What about AmEx Gold vs AmEx Cash Preferred? - Also do these operate like credit cards or are they always pay it off every month like AmEx used to be?

We're not really credit chasers, just trying to make the best choices and expand our available credit so that the home improvement doesn't tank our scores. Thanks for any advice, just throwing this all out there to see what we missed. We appreciate your insight.

Currently thinking this order: Personal Loan, New Cards: Chase (him), one of the AmEx (maybe him Gold and me the Prefered Cash) then the Lowes & Home Depot (him), then massage existing cards (CLIs, etc).

[Anonymous]

Looked a little further into Alliant, as my husband has an account there that isn't really utilized as he missed that old loan trick you could do.

Would definitely consider the Visa Platnium since no fee, 2% cashback and potential 0% on purchases for 12 months.

I wonder can you apply for the Signature keep for a year, get eh 2.5% cashback and then downgrade to Platnium once the annual fee starts? Or is $99 worth it for the 2.5% - I suppose that answers comes in how much cash you're generating per billing cycle.

[sxa001]

I like to preface my thoughts with the fact that I am not as well versed in the credit card world as others here so my thoughts are personal opinions not scientific facts. 

In terms of order of applying, I would apply for what you want to get approved for most first (i.e. the home improvement loan) and then apply for the cards in order of your desire for them.  

For the AMEX cards, in the personal line only the Green, Gold and Platinum are "Charge Cards" that have to be paid in full every month.  They do offer Pay Overtime features now though so they can be used more like a credit card in some cases. 

The Blue Cash Preferred is a credit card, but of course we recommend paying in full anyways to maximize the rewards. 

Overall I think your proposed line-up is pretty solid for your needs.  It sounds like a lot of money will be spend on home improvement and groceries.  There are a lot of ways to crunch the numbers as you are looking for cards, personally I like to keep things simple.  You could seek out the AOD 3% card if you can get in with them, there is no telling how long they will keep that card as is.  I would avoid Alliant, I just don't see paying $99 for 2.5% when I can get 2% cards for free. 

Ikea or other store cards are good if you are planning to take advantage of special financing, otherwise I probably wouldn't bother with the HP.  

Congratulations on the new home and good luck with the renovations and pending app spree! 

[cashorcharge]

Congrats on your success and home loan closing!

A lot of good advice here.  

The only thing I'll add for you to consider...I tend to see a lot more and generous approvals for Lowe's (Synchrony) versus Home Depot (Citi Retail Services).  I don't have either card and know there's several opinions both ways with Sync.  Before you decide on Home Depot...perhaps explore Lowe's.  In the Approvals Threads you can see the difference from each card/bank.  

[Anonymous]

Thanks @sxa001!

We're excited and nervous. We think we're in a good position, but it's still nerve-wracking.

We do not qualify for the AOD 3%, and I also see we missed out on the USAA LImitless while we were in the garden.

Disappointing, but oh well, life happens.

[blindambition]

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@cashorcharge wrote:

Congrats on your success and home loan closing!

A lot of good advice here.  

The only thing I'll add for you to consider...I tend to see a lot more and generous approvals for Lowe's (Synchrony) versus Home Depot (Citi Retail Services).  I don't have either card and know there's several opinions both ways with Sync.  Before you decide on Home Depot...perhaps explore Lowe's.  In the Approvals Threads you can see the difference from each card/bank.  

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+1

Congrats OP!!

This is solid info. I'd personally go with HD. They have less decreases and closures compared to Lowe's cards. City doesn't usually play with store limits like Synch.

[Anonymous]

@cashorcharge  - yes, I just broke down the Home Depot vs Lowes on a spreadsheet, and Lowes is definitely the better card.

Maybe we try for both because I know there are times where Home Depot has more style options. We prefer Lowes because they have a generous military discount. Still good tip, I'll go look both cards up over here before we do anything. Thank you!

[Anonymous]

@blindambition 

You just triggered a distant memory with an Eddie Bauer card suddenly disappearing... I'll definitely dig into that a little bit re: Lowes. Thanks!

[Anonymous]

Well, after a full day of additional research things have ended up quite different than expected.

We decided to pass on all things American Express after noticing that the cash back was really just statement credits. With no major travel expected for 5-7 years it just didn't make sense.

Instead, he's decided on the new Chase Freedom Flex MstrCrd with 0%APR for the first 15 mos. If unexpected travel pops up there are some travel benefits here and the extended 1st year (5% up to $12k) grocery benefit will help us as we restock at the new house. And the 3% on takeout and delivery will help us through the next 3 mos as we're transitioning between locations, and we're not cooking at home as much as usual. Finally, if we continue to attempt to make it work on just one car because the pandemic has dropped our driving needs (ideal because I don't want to pay for renovations and a car at the same time) the Lyft bonus through 2022 will be nice if we're ever in a bind.  I would not have chosen this card because I don't want to think about credit cards once I have them, but he's already in the habit after having a Discover card.

Next, we're going to go for either the Alliant Signature Visa with no $95 fee for the first year and 2.5% cashback on everything. If it doesn't more than pay for itself (it should), then we'll downgrade to the Alliant Platinum Visa which is 2% cashback for everything.

Also in the running now is PenFed Power Cash Rewards Visa Signature which is also 2% cashback on everything. I discovered late last night that Active Duty military qualifies for 2% instead of the usual 1.5% plus they do not have to open banking accounts the way non-military does in order to qualify for the higher rate. He may just throw a 3rd app in for this one anyway just to increase his credit margin.

Lowe's - we discovered there's no point in apply because you cannot combine the 5% card discount with the 10% military discount. So this means he will go for Home Depot instead.

Okay so that's it for him. Now for me.

We decided to eventually add a Discover It card for me to take advantage of the 1st year cashback bonus. But we're putting it on the backburner for now. It makes sense to save that for a 2nd round of renovations if we get to stay in the house beyond this assignment, or if we have to PCS again.

I will be exiting the garden (after over 3 years!!) to apply for the Chase Amazon Prime Rewards Signature Visa - as much as it pains me to do so. We run a healthy chunk through Subscribe and Save and their toy & book departments, and I have the Prime Membership. I'll be using household income. I think this will be my first app, I think I only have a single inquiry right now, so my file is as clean as it will ever be.

Next, I'm doing the new Carter's card which runs through Comenity. I was trying the shopping cart trick, but nothing popped up. I actually was about to do the app when my gut said to do the Chase/Amazon app first. They offer 25% off the first purchase and having it gives you double store points to redeem for coupons and we have a growing kid. Recently noticed that their doorbusters and clearance racks are significantly cheaper than anything on Amazon. Kinda bummed I didn't notice that earlier.

Finally, vaguely considering West Elm (Comenity) or Wayfair (Citi) if we can't finagle our way into some tradeline discounts for furnishing, etc. But won't pull that trigger until the new year. Haven't really done the research to see if there's any benefit if we already have the cashback cards and Rakuten.

Anyway, just wanted to update. We don't' feel as panicked on rushing the apps since we read that mortgages don't usually start reporting for 1-2 mos after closing. Still, we obviously want to get to it sooner than later. We're working on the renovation budget next, then the Personal Loan app, then these card apps will start.

As always, any feedback is very helpful.

P.S.

I have a seeking suspicion that I've put this whole thread in the wrong sections, so if a moderator wants to move this all to the credit card discussion, I'd really appreciate that.

[800wannabe420]

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@Anonymous wrote:

@cashorcharge  - yes, I just broke down the Home Depot vs Lowes on a spreadsheet, and Lowes is definitely the better card.

Maybe we try for both because I know there are times where Home Depot has more style options. We prefer Lowes because they have a generous military discount. Still good tip, I'll go look both cards up over here before we do anything. Thank you!

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You know, Home Depot also gives the 10% discount. You have to ask at checkout every time and I think there is a max amount they discount but I have received it on purchases of $250+  Just make sure you have a military/veteran id with you.