CC Application Strategy

[Roisin]

I’d like to be approved for two CCs this spring, then eventually, more down the road. I’m seeking advice regarding the best way to meet my goals, specifically, CC suggestions and a well-considered application order to give myself the best chances for approvals (and no wasted HPs), highest SLs, and potential for CL growth and lowest possible APRs for the long haul. I’m aware that my best move creditwise would be to garden. However, there are other considerations for me now that outweigh gardening. If I can add a card or two without crashing and burning, I want to do it.

My husband and I are planning some home renovations, and I want to have more credit at my disposal later this year. Also, we might increase our HELOC, and I want to add CCs before that happens, and far enough in advance so as not to adversely impact any approval decisions.

Cash back works best for me, but is not essential; 0% APR for 15 months, or more, is preferred; and SUB would be lovely, but it’s not a deal breaker. I care more about the long-term benefits of each card than short-term perks. To be honest, if there’s a choice between two similar cards, the integrity of the institution behind a card can matter. I’m over 5/24, so Chase is out (FWIW, I’m delighted with my CFF). 

My long-term goal is to have perhaps a dozen, or so, cards with lowest APRs possible, and let them grow. Right now, because I have a relatively short credit history. I’m in the middle APR tier, and I expect to be there for some time. Part of my reasoning for wanting a number of cards is that I want to keep my UTL in check. As it is, I try to never spend more than 30%. I shop at Sams and Costco, and I’d like at least one more Visa for Costco.

My scores are in the mid 700s. TU and EX are consistently higher than EQ. I apply for CCs using just my teacher’s salary, and don’t include my husband’s income (which is far greater than mine) or any other income that I may earn. The bad news is that I have a relatively short credit history, with seven CCs; four of those were added January through October ‘22 (so, my most recent CC was new 5 months ago).

CCs I’m considering:

BCE: I want this card, it’s solid. 3% CB online retail is right up my alley. Don’t know SL or APR.

WF AC: Mailing me offers, VISA Signature. Don’t have WF CC. Not necessarily a WF fan. APR 24.24%

FNBO Evergreen: Visa Signature. SL is known (meh) via their online pre-approval. APR 24.24%

Ally Unlimited Cash Back MC for Educators: Mailing me offers LIKE CRAZY. APR 20.99%

PenFed Gold or PenFed PCR: Visa or Visa Signature. Maybe apply for PenFed CC next year (I’m new to CU). 15.49 - 17.99% APR.

Of course, I’m open to other CC suggestions/ideas, and I realize there are no hard answers or guarantees. Thank you for your patience with my long post. I look forward to your insights and advice.

[MySunrise271]

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@Roisin wrote:

I’d like to be approved for two CCs this spring, then eventually, more down the road. I’m seeking advice regarding the best way to meet my goals, specifically, CC suggestions and a well-considered application order to give myself the best chances for approvals (and no wasted HPs), highest SLs, and potential for CL growth and lowest possible APRs for the long haul. I’m aware that my best move creditwise would be to garden. However, there are other considerations for me now that outweigh gardening. If I can add a card or two without crashing and burning, I want to do it.

My husband and I are planning some home renovations, and I want to have more credit at my disposal later this year. Also, we might increase our HELOC, and I want to add CCs before that happens, and far enough in advance so as not to adversely impact any approval decisions.

Cash back works best for me, but is not essential; 0% APR for 15 months, or more, is preferred; and SUB would be lovely, but it’s not a deal breaker. I care more about the long-term benefits of each card than short-term perks. To be honest, if there’s a choice between two similar cards, the integrity of the institution behind a card can matter. I’m over 5/24, so Chase is out (FWIW, I’m delighted with my CFF). 

My long-term goal is to have perhaps a dozen, or so, cards with lowest APRs possible, and let them grow. Right now, because I have a relatively short credit history. I’m in the middle APR tier, and I expect to be there for some time. Part of my reasoning for wanting a number of cards is that I want to keep my UTL in check. As it is, I try to never spend more than 30%. I shop at Sams and Costco, and I’d like at least one more Visa for Costco.

My scores are in the mid 700s. TU and EX are consistently higher than EQ. I apply for CCs using just my teacher’s salary, and don’t include my husband’s income (which is far greater than mine) or any other income that I may earn. The bad news is that I have a relatively short credit history, with seven CCs; four of those were added January through October ‘22 (so, my most recent CC was new 5 months ago).

CCs I’m considering:

BCE: I want this card, it’s solid. 3% CB online retail is right up my alley. Don’t know SL or APR.

WF AC: Mailing me offers, VISA Signature. Don’t have WF CC. Not necessarily a WF fan. APR 24.24%

FNBO Evergreen: Visa Signature. SL is known (meh) via their online pre-approval. APR 24.24%

Ally Unlimited Cash Back MC for Educators: Mailing me offers LIKE CRAZY. APR 20.99%

PenFed Gold or PenFed PCR: Visa or Visa Signature. Maybe apply for PenFed CC next year (I’m new to CU). 15.49 - 17.99% APR.

Of course, I’m open to other CC suggestions/ideas, and I realize there are no hard answers or guarantees. Thank you for your patience with my long post. I look forward to your insights and advice.

---

Welcome to MyFico Forum😀

Congratulations on a well-thought-out strategy.  

1. I have had tremendous success with the Lowes Advantage credit card for 60-80 percent of my home improvement needs. They have been very generous with SL and CLIs. I've made  major purchases (e.g. Replaced all windows, doors, and more recently a new water heater, central AC, and above-the-stove microwave) using their 0% financing options. What a life line this card has been. This would be a good long-term keeper card.

2. I am a member of both PenFed and Navy Fed which have excellent products. As credit unions generally have those low-interest credit cards, good SL, no fees (and other products) you can hold onto, I would look at credit unions, maybe some local to you as a start. While you are waiting to apply for any credit or loan products, you could begin relationship building (ie opening a checking or savings account, utilizing bill pay, etc)

3. Time is the only thing that will give your AAoA a boost, so maybe let a couple of current cards hit the 12-month mark before you begin applying for your next two cards. Also be mindful of your inquiries on each CR, and try to evenly distribute which credit card lender will pull from which CR.

4. FNBO has also been a great ‘everyday’ card, with generous SL and CLIs. This could be a good card to help with overall utilization and another long-term keeper.

HTH🙃

[Anonymalous]

I agree that credit unions may be a good choice. They typically have much lower APRs than banks. The downside is they tend to be conservative when it comes to underwriting, and often won't approve people who show signs of credit seeking, like many inquiries, new tradelines, or a big jump in overall CL. The larger national CUs may be the best compromise, because they're often less concerned about credit seeking, and also tend to give bigger CLs. They're also more likely to be amenable to APR reductions, though that's very dependent on the institution.

And if you are concerned about utilization, getting tons of cards isn't the best option, because each new card will have a lower and lower SL. The other young files who have gone on app spree after app spree tend to end up with lots of cards with $500 CLs. My approach was to apply for a much more modest number of cards, but to target institutions known for generous CLs. I think I was fairly successful: My first card had a CL of $300, but my second card had a SL of over $8000, and grew to more than $24,000 over the next 9 months (it's from NFCU). I currently have less than 2 years of credit history, but my total limit across 5 cards is north of $45,000. There are a few new files on the board with a higher total limit and more cards, but not by much. There does seem to be a sweet spot, for those who want to maximize their CLs and keep utilization low.

And if you don't want to add your husband's income to the credit card application, that's fine. But if he has a longer credit history, you might consider having him add you an authorized user on one of his oldest cards (as long as it has no negatives, like lates). A single AU card that's been open for a long time can give someone with a short credit history a nice boost to their scores. Though it's not a panaea -- many lenders ignore AUs. And don't try it with Amex, because Amex sets the age of AU cards to 0.

Amex is known to be fairly generous with CLs, often tripling the SL after a few months. Ally is a big unknown -- I think we've only had two approvals on the board, so we don't have enough DPs (though I believe they were both in the $2.5K range). PenFed tends to be generous.

[Roisin]

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@MySunrise271 wrote:

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@Roisin wrote:

I’d like to be approved for two CCs this spring, then eventually, more down the road. I’m seeking advice regarding the best way to meet my goals, specifically, CC suggestions and a well-considered application order to give myself the best chances for approvals (and no wasted HPs), highest SLs, and potential for CL growth and lowest possible APRs for the long haul. I’m aware that my best move creditwise would be to garden. However, there are other considerations for me now that outweigh gardening. If I can add a card or two without crashing and burning, I want to do it.

My husband and I are planning some home renovations, and I want to have more credit at my disposal later this year. Also, we might increase our HELOC, and I want to add CCs before that happens, and far enough in advance so as not to adversely impact any approval decisions.

Cash back works best for me, but is not essential; 0% APR for 15 months, or more, is preferred; and SUB would be lovely, but it’s not a deal breaker. I care more about the long-term benefits of each card than short-term perks. To be honest, if there’s a choice between two similar cards, the integrity of the institution behind a card can matter. I’m over 5/24, so Chase is out (FWIW, I’m delighted with my CFF). 

My long-term goal is to have perhaps a dozen, or so, cards with lowest APRs possible, and let them grow. Right now, because I have a relatively short credit history. I’m in the middle APR tier, and I expect to be there for some time. Part of my reasoning for wanting a number of cards is that I want to keep my UTL in check. As it is, I try to never spend more than 30%. I shop at Sams and Costco, and I’d like at least one more Visa for Costco.

My scores are in the mid 700s. TU and EX are consistently higher than EQ. I apply for CCs using just my teacher’s salary, and don’t include my husband’s income (which is far greater than mine) or any other income that I may earn. The bad news is that I have a relatively short credit history, with seven CCs; four of those were added January through October ‘22 (so, my most recent CC was new 5 months ago).

CCs I’m considering:

BCE: I want this card, it’s solid. 3% CB online retail is right up my alley. Don’t know SL or APR.

WF AC: Mailing me offers, VISA Signature. Don’t have WF CC. Not necessarily a WF fan. APR 24.24%

FNBO Evergreen: Visa Signature. SL is known (meh) via their online pre-approval. APR 24.24%

Ally Unlimited Cash Back MC for Educators: Mailing me offers LIKE CRAZY. APR 20.99%

PenFed Gold or PenFed PCR: Visa or Visa Signature. Maybe apply for PenFed CC next year (I’m new to CU). 15.49 - 17.99% APR.

Of course, I’m open to other CC suggestions/ideas, and I realize there are no hard answers or guarantees. Thank you for your patience with my long post. I look forward to your insights and advice.

---

Welcome to MyFico Forum😀

Congratulations on a well-thought-out strategy.  

1. I have had tremendous success with the Lowes Advantage credit card for 60-80 percent of my home improvement needs. They have been very generous with SL and CLIs. I've made  major purchases (e.g. Replaced all windows, doors, and more recently a new water heater, central AC, and above-the-stove microwave) using their 0% financing options. What a life line this card has been. This would be a good long-term keeper card.

2. I am a member of both PenFed and Navy Fed which have excellent products. As credit unions generally have those low-interest credit cards, good SL, no fees (and other products) you can hold onto, I would look at credit unions, maybe some local to you as a start. While you are waiting to apply for any credit or loan products, you could begin relationship building (ie opening a checking or savings account, utilizing bill pay, etc)

3. Time is the only thing that will give your AAoA a boost, so maybe let a couple of current cards hit the 12-month mark before you begin applying for your next two cards. Also be mindful of your inquiries on each CR, and try to evenly distribute which credit card lender will pull from which CR.

4. FNBO has also been a great ‘everyday’ card, with generous SL and CLIs. This could be a good card to help with overall utilization and another long-term keeper.

HTH🙃

---

Thanks so much for your thoughts. I appreciate the time you took to give me advice. Responding to each of your points:

1. We're on the same page regarding Lowes. Already, I have a Lowes card -- in fact it's my only retailer's card, and probably will remain so. I've used it for several big purchases, and SL and CLI were both generous. 

2. I have a Penfed savings account (mentioned on another thread somewhere) and plan to feed it until next year. Happy to hear that you're pleased with your membership, and your advice jives with my long-term plan.

3. I hear you regarding AAoA. However, after determing that my best overall long-term plan requires me to shoot myself in the foot at some point, I'd prefer to do it now, rather than later. With that in mind, the inquiries on each CR, "to evenly distribute which credit card lender will pull from which CR" is what I need most help with, I think. I've scanned the forums, however, I'm still not sure that I'm figuring correctly. I can say that TU likes me best, followed by EX, then EQ, and this has been consistent. Also, Lowes Sync, CFF, and Disco have all quickly given me generous CLIs, and one was early, one mid, and one late in my acquisitions lineup. If there's any insight out there regarding which CCs might give me the best chances for approval based on this info, I'd really appreciate a heads up, or knowing where to look.

4. It's reassuring to hear you're pleased with FNBO. Trusting their pre-qual app, and already knowing their proposed SL and APR for me, puts this CC near or at the top of my list.

Thanks again!

[Roisin]

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@Anonymalous wrote:

I agree that credit unions may be a good choice. They typically have much lower APRs than banks. The downside is they tend to be conservative when it comes to underwriting, and often won't approve people who show signs of credit seeking, like many inquiries, new tradelines, or a big jump in overall CL. The larger national CUs may be the best compromise, because they're often less concerned about credit seeking, and also tend to give bigger CLs. They're also more likely to be amenable to APR reductions, though that's very dependent on the institution.

And if you are concerned about utilization, getting tons of cards isn't the best option, because each new card will have a lower and lower SL. The other young files who have gone on app spree after app spree tend to end up with lots of cards with $500 CLs. My approach was to apply for a much more modest number of cards, but to target institutions known for generous CLs. I think I was fairly successful: My first card had a CL of $300, but my second card had a SL of over $8000, and grew to more than $24,000 over the next 9 months (it's from NFCU). I currently have less than 2 years of credit history, but my total limit across 5 cards is north of $45,000. There are a few new files on the board with a higher total limit and more cards, but not by much. There does seem to be a sweet spot, for those who want to maximize their CLs and keep utilization low.

And if you don't want to add your husband's income to the credit card application, that's fine. But if he has a longer credit history, you might consider having him add you an authorized user on one of his oldest cards (as long as it has no negatives, like lates). A single AU card that's been open for a long time can give someone with a short credit history a nice boost to their scores. Though it's not a panaea -- many lenders ignore AUs. And don't try it with Amex, because Amex sets the age of AU cards to 0.

Amex is known to be fairly generous with CLs, often tripling the SL after a few months. Ally is a big unknown -- I think we've only had two approvals on the board, so we don't have enough DPs (though I believe they were both in the $2.5K range). PenFed tends to be generous.

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Much gratitude for your kind advice. I concur with your thoughts regarding CUs. Already, I have a savings account with PenFed that I plan to feed until next year. At that time, I plan to apply for one of their CCs. I'm in no hurry on this one.

Congratulations on your successes with SLs and CLIs! As it turns out, my app spree last year didn't land me with any $500 SLs, nor any close to that. I spent quite some time researching, calculating, and timing apps to the best of my abilities (then, crossed my fingers) so chances of that happening would be slim. In fact, today it looks like my combined UTL would qualify me for the "new files" group you mention. Regardless, I'm reaching out here today because I realize that I'm pushing the envelope by stepping out of the garden earlier than I should as I seek out more CCs. 

Regarding "tons" of CCs being a no-no, perhaps I’m off here, but I don't consider a dozen or so CCs to be over-the-top. Am I wrong on this? I'm guessing that my first, recently unsecured card, and possibly my second card are bucketed, and I want a solid group of quality CCs to grow with me over the years.

Also, my reasoning for not wanting to use our combined household income for my CC apps, or to be an authorized user on my husband's accounts are many, and I won't go on about all of them here. Still, one reason that I’ll share is this: I've been widowed, and at that time not having my own credit, being responsible for debt that I didn't incur -- debt that was way more than I could comfortably manage on my own -- was a situation in which I don't ever want to find myself again. I feel much more secure with a number of smaller CLs, based solely on my most verifiable income, that I can comfortably manage before, during, and after any sort of financial change or crisis. If it takes a couple of more cards in order to obtain a solid combined CL and overall UTL, then that's what I feel works best for me at this time.

Thank you for your input regarding AMEX, Ally, and PenFed. You're confirming what I've gleaned about each from my research here. Although, I don’t know if confirming all this makes my decisions any easier!

Again, thanks for taking time to respond. Your input is very helpful.

[805orbust]

You've mapped out some pretty decent choices @Roisin .  Big fan of FNBO here, and Amex as well.  I'd most likely start with Penfed, however I'd caution that all 3 are a "bit" inquiry sensitive and you've got quite a number of new accounts in the last year.  Personally I'd wait until the youngest of those is at 1 year and then go forward, however, I'm cautious as all getout when it comes to planning out apps and tend to space them out by a year.

[Roisin]

@805orbust thanks for sharing your take on my choices. The facts as I understand them -- combined with my short history -- that all three are decent, and each is, as you write, a "bit" inquiry sensitive, smack right at the crux of the matter! Argh.

Regarding PenFed, I might've considered starting there, however, my membership with them is very new and I've read conflicting accounts regarding success applying for their CCs with a brand-new membership. I'm not sure what to think. I'd decided that I'd wait until I build a relationship, then go for it next year. Am I misinformed on this? They've sent me an email invitation to apply for a CC; I just assumed that it was a matter of course for new memers to receive such an email. 

I'm impressed with your mindfulness and prudence (and your TCL!). Along with patience, these are qualities that don't come naturally to me. Thank you for your advice and spending time with me on this.

[805orbust]

@Roisin  it's all good. They didn't come naturally to me either a decade ago when I embarked on this journey, but brick by brick it was built. Ironically,  Penfed was pretty early in my rebuild, I had 5 or 6 recent (within 1 year, I was going crazy) inquiries and the same amount of new accounts.  I apped a month after gaining membership and they gave me my first 5-figure limit ($16,000)  by far.  It still remains to this day.  And at the time Penfed didn't have a reputation for being kind to rebuilders like, say Navy.  So you never know.

I apped way too much early on, and have about 11 or so accounts that I got rid of from back then. However I was always calculating (even when knowledge was limited) about how and what I apped for. In the long run it turned out, despite some bumps.   I can confirm, however, that the patience of Buddha will serve you well my friend. Err on the side of caution... when possible 🤣🤣🤣

[805orbust]

You'll be fine tho, there are some SMART people here and I continue to rely on their wisdom.  😉

[Roisin]

@805orbust if we believe Buddah, then patience is motivated by acceptance and compassion for suffering, rather than a desire to eradicate it. *sigh* I'm not sure I'm enlightened enough ... for me, patience in this game IS suffering, I'm sure of it!