Approval Odds?

[Anonymous]

Hi everyone!

This is my first time ever posting on a forum! So if I miss any information, please do not hesitate to ask.

Background Information:

Recent College Graduate (MIS degree)

Annual Income: $75k

Two Credit Cards both done on 1/28 [first credit cards ever]

Chase Freedom Unlimited: SL of $500

Merrick DYL: SL of $700

Any charges have been PIF

Scores

655 EQ 630 TU Vantage 3.0 (credit karma) 750 EX (from their site)

100% excellent payment history/no late payments

6 collections [All Medical Bills]

 - thinking about sending DV to the CA

AAoA: 2 years 11 months (oldest: 5 years 5 months)

Inquires: 1 EQ 3 TU 

My questions are:

1. How long should I wait to apply for another card (targeting late-March or April)?

2. I would ideally like to apply for AMEX BCE/ED (which I have been pre-qualified for)? Preferably would like to get the Blue Cash Preferred.

3. Would I then be able to apply for the Chase Sapphire Preferred in late-June or July?

After those cards, I would head to the garden. My fiance is waiting to August to apply for the Sapphire Reserve so we can combine points and take a nice trip. Everyone has great points, so I would like to hear some feedback on a timeline I should follow and the likelihood of approval for both cards listed above. 

Thank you for taking time to respond to my post. All advice is appreciated, even if it's not what I want to hear. 

[toadsworth]

How old are the collections?

My rebuild was a little different in that I didn't have any derogatories showing on my reports, but I did two cards the first month, then waited 6 months before going on a spree of 6 cards (and a savings secured loan as I had no installment accounts). Among those approvals were an Amex Blue Cash Everyday with $5000SL and the Amex Everyday which they gave me a $10,000SL. I was in disbelief, 6 months into having any revolving credit and Amex gives me that. My income at the time was a good bit lower than yours, too. So I say, give it 6 months. Maybe let a very small balance report on a card though, I know all reporting at zero isn't "optimal", but its also not possible to make it optimal without 3 revolvers (someone who knows more about this will probably have some input). FWIW, I always let a small balance report on one of my cards for those 6 months. Under 9% util. is key.

[Anonymous]

Thank you for sharing your experience with me. 

I would really like for the derogatory remarks to be removed because I know my score would improve greatly. I do think it is in my best interest to wait a little longer than expected (end of July), but will pay off in the long-run. I really wanted to space out so I could hit my minimum spends to collect all bonuses. I'm just very tired of cycling my CFU since the SL is very small. However, I am aware that the CFU will increase in 5 months with "good behavior", as well as my Merrick to $1400. 

Again, thank you for your input. 

[Anonymous]

Sorry, I missed the question about the collections' dates:

They were reported in groups of two:

1st three: 1 yr and 9 months

2nd three: 2 years and 3 months

[Anonymous]

---

wrote:

Hi everyone!

This is my first time ever posting on a forum! So if I miss any information, please do not hesitate to ask.

Background Information:

Recent College Graduate (MIS degree)

Annual Income: $75k

Two Credit Cards both done on 1/28 [first credit cards ever]

Chase Freedom Unlimited: SL of $500

Merrick DYL: SL of $700

Any charges have been PIF

Scores

655 EQ 630 TU Vantage 3.0

100% excellent payment history/no late payments

6 collections [All Medical Bills]

 - thinking about sending DV to the CA

AAoA: 2 years 11 months (oldest: 5 years 5 months)

Inquires: 1 EQ 3 TU 

My questions are:

1. How long should I wait to apply for another card (targeting late-March or April)?

2. I would ideally like to apply for AMEX BCE/ED (which I have been pre-qualified for)? Preferably would like to get the Blue Cash Preferred.

3. Would I then be able to apply for the Chase Sapphire Preferred in late-June or July?

After those cards, I would head to the garden. My fiance is waiting to August to apply for the Sapphire Reserve so we can combine points and take a nice trip. Everyone has great points, so I would like to hear some feedback on a timeline I should follow and the likelihood of approval for both cards listed above. 

Thank you for taking time to respond to my post. All advice is appreciated, even if it's not what I want to hear. 

---

I have 26 medical bill collections on TU, 17 on EX and 7 on EQ. Most are from 2012-2013 but the most recent one was 2016. I got my first secured card around 2015 and since then I've managed to get 12 more various cards, so I have no doubt that you will be able to get some more cards with only 6 collections. Since your collections won't fall off of your reports for awhile, I'd say just cross your fingers lol and apply to the cards that you get preapprovals for when you check the prequals, lol.

As far as a timeline to apply, I'd personally say you're safe to apply to one more card now or in the next few months since having 3 cards is what maximizes your score. Then after that, just garden for awhile, 6 months to a year and go from there. I'd suggest Discover. Check their prequals and see what they show. Do you know your EX score? Amex would be good to get in with also, especially if they're showing preapprovals for you.

[Anonymous]

Well, thank you for your input. Discover is only showing Pre-Qualified for their Secured Card, while AMEX Pre-Qualified shows the Everyday and the Blue Cash card. I am really interested in AMEX and Chase's ecosystems. I have pretty good history with Chase, as I have had a High School and College account with no bad history. This is partially why I had a little confidence when applying the Freedom Unlimited. 

The reason I did Merrick Bank was because I got pre-approved and all I had to do was accept. Plus, at $700 SL and increasing to $1400 after 7 months wasn't too bad. However, that card has negative value in my rotation, as it has no cashback or rewards. It also has an annual fee. I am not sure they have an products I can do a product change with, so I don't hurt my AAoA. Any advice moving forward?

As mentioned before, I think I'll wait a month or two to apply with AMEX and see if that improves my chances with Chase. By that time, I am scheduled to receive an CLI after 5 months. Around July with Chase and August with Merrick. Hopefully, that'll show how responsible and credit worthy I am. 

I will only use these cards as debit cards. No big purchases down the pipeline, yet. Any other advice would be greatly appreciated.

Thank you

[Anonymous]

I recently submitted an update to the post. I just checked my Experian Score (FICO 8) and it is 750! Does this improve my odds at landing an AMEX since that's what they pull? I really set on the BCP card. 

Feedback needed! Thank you.

[Remedios]

I think you should not apply for anything right now. Let your accounts age.

Even if you get approved, you may get stuck with a toy limit that will not grow as fast as it could if you wait a bit longer, not to mention lowering your AAoA.  Also, with all your derogatories, you really want to show a good payment history before applying for anything. 

As far as CSP goes, if Chase gave you a 500 CL on FU, I really do not see them going for $5000.00 in just a few months

I suggest you work on building savings and emergency funds. Planning for the future is by far more rewarding in the long term compared to app planning.  

Somehow tho, I have a feeling you already made up your mind lol 

[Anonymous]

Thank you for your contribution.

My baddies on show up on TU only, not EX which is what AMEX pulls. You're totally correct about waiting. To be fair, Chase was my first app. I have no other history of revolving credit, as I was a big proponent of using cash or debit. 

I have definitely put off the CSP for at least, 6 months to a year. However, my train of thought is if AMEX increases my line generously, then Chase will graciously qualify for the CSP.