Citi DC and Macy's Back to Back Apps

VintageMel · ‎06-27-2020

I just got approved for a Citi DC, and am deciding on a second card to apply for as part of a mini spree. Unless I am mistaken, Macys credit cards are issued by Citi. Does this mean I wouldn't be approved for a Macys card right away?

AllZero · ‎06-27-2020

Maybe @M_Smart007 or @Anonymous has an answer?

M_Smart007 · ‎06-27-2020

@VintageMel wrote:
I just got approved for a Citi DC, and am deciding on a second card to apply for as part of a mini spree. Unless I am mistaken, Macys credit cards are issued by Citi. Does this mean I wouldn't be approved for a Macys card right away?

@VintageMel I think because it is not a Citi core card "DSNB" You should be fine, although I cannot confirm 100%.

Anonymous · ‎06-27-2020

They’re issued by DSNB (department store national bank) which is a subsidiary of Citibank to issue retail cards. No, that does not mean that you would not be approved for that card, although they may pull the same bureau and see that they had recently pulled you. I don’t know how that would factor into the decision.

Anonymous · ‎06-27-2020

Also be aware they have a regular version and an American Express version. High APR on both.

Anonymous · ‎06-27-2020

Worst case scenario, they will just give you a smaller starting limit, but who cares? they both grow fast! both versions of the Macy’s I mean.

but it is good to diversify, so for the next card make sure to get something that's not Citibank. 😉

VintageMel · ‎06-27-2020

@Anonymous wrote:
Worst case scenario, they will just give you a smaller starting limit, but who cares? they both grow fast! both versions of the Macy’s I mean.

but it is good to diversify, so for the next card make sure to get something that's not Citibank. 😉

I'll keep that in mind someday when I'm ready for another one. As it is I'm unsure how much I'd actually use this second one I'm applying for. That's why I'm thinking something with a SUB, an attractive APR, or other perks like the Macys card has. I do know their rate is as far from attractive as you can get. The other top contender is Discover which says I'm pre approved and showed an 11.9% rate after the intro period.

Anonymous · ‎06-27-2020

@VintageMel I’ve got to admit Discover is a great pick. I would definitely commend you for a wise choice there, as is American Express and they typically have a sub.

And it’s really not about whether you’re going to use it so much it’s about the fact that if you ever need a mortgage, you want 5 revolvers, so that you can maximize that metric to get the best score.

That’s the only reason I recommend 5 revolvers. All you need to do is put 1 charge every 12 months on these cards and your fine. That’s all you got to do to keep them alive, so really you can just use the ones that benefit you and the rest can go in the sock drawer.

But the longer you wait, the more they hurt your overall age, so it’s better to get them now and then just stop getting cards. If you have no need for any more, there’s no need to get any more after that period.

And after 2 years, all the inquiries will be gone from your record and your insurance rates could potentially decrease because your CBIS (credit based insurance score) will go up because your newest accounts will have aged and your inquiries will have disappeared. (Does not apply in 4 states.)

But, if you wait a year or two and get another account then all that has to go on the waiting list again. New accounts are anathema and inquiries are penalizing. So it’s better to get your whipping done and then stay away from it. Do you understand?

Please do what you feel is best but I just want you to understand why I gave you those recommendations and how it all works so you make the most informed decision.

BTW, if you'd like, read the thread at the top of my signature that thread will give you a lot of general information.

VintageMel · ‎06-27-2020

@Anonymous wrote:
@VintageMel I’ve got to admit Discover is a great pick. I would definitely commend you for a wise choice there, as is American Express and they typically have a sub.

And it’s really not about whether you’re going to use it so much it’s about the fact that if you ever need a mortgage, you want 5 revolvers, so that you can maximize that metric to get the best score.

That’s the only reason I recommend 5 revolvers. All you need to do is put 1 charge every 12 months on these cards and your fine. That’s all you got to do to keep them alive, so really you can just use the ones that benefit you and the rest can go in the sock drawer.

But the longer you wait, the more they hurt your overall age, so it’s better to get them now and then just stop getting cards. If you have no need for any more, there’s no need to get any more after that period.

And after 2 years, all the inquiries will be gone from your record and your insurance rates could potentially decrease because your CBIS (credit based insurance score) will go up because your newest accounts will have aged and your inquiries will have disappeared. (Does not apply in 4 states.)

But, if you wait a year or two and get another account then all that has to go on the waiting list again. New accounts are anathema and inquiries are penalizing. So it’s better to get your whipping done and then stay away from it. Do you understand?

Please do what you feel is best but I just want you to understand why I gave you those recommendations and how it all works so you make the most informed decision.

BTW, if you'd like, read the thread at the top of my signature that thread will give you a lot of general information.

Thank you. Yes, that all makes perfect sense. Take the punch now and get it over with instead of taking a punch now and then another one a year from now with a sting that will linger longer than necessary.

We're pretty happy with our mortgage as it is, although that's not to say we'll never want to refinance. I also have the advantage of being married to a man with a long history of excellent credit, which I'm sure helped secure the great rate we have.

That said, I do think your advice here is sound. And your scoring summary thread is incredibly useful.

AllZero · ‎06-27-2020

Excellent advice from @Anonymous

In addition, it's good to diversify your lenders as well as your credit products. A suggestion would be to join a credit union such as NFCU (military restriction), PenFed, BECU, DCU, etc.

Look into a Platinum type of card. Not only is it good for utilization padding, those type of cards may offer no rewards, but offer low APR, intro 0% APR for purchases or intro or annual 0% BT offers, 0% cash advance fee, etc.

It's best to forecast your future and get the products that you may have a need for. Better to have, than not have when one's credit profile might not be the strongest.