@Anonymous
Hello, credit_economist. I hope you have been enjoying myFICO so far! 
I will be addressing your first question.
RE: "Does APR matter if I PIF?"
Most would say that it does not because paying in full allows you not to worry (and I agree!). Doing so is also a GREAT credit-managing habit! But I would say that it does matter to a degree because you may find yourself needing to carry a balance and having a really high APR may make it hard for you to pay it down, even if it's just temporary. 
@Anonymous wrote:Hi everyone,
Credit building newbie here (using this term as I can't find a more fitting one under forum common abbreviations), with a few classic yet important questions that I couldn't fully figure out from older posts on the forum in one place:
1) Does APR matter if I PIF?
I started in December 2017 with no credit history. I had a bank account with TD Bank, so I opened a secured credit card with them - TD Cash Credit Card $1,500 CL, issued by Visa, $29 AF. As per TD's standard policy 8 months later it's graduating to the same, but non-secured CC, with $0 AF, and possibility to apply for CLI, which is great news! However, also per TD's standard policy, there is no possibility to lower the APR - apparently, unlike many other banks, TD doesn't allow individual applications, but rather just systematically lowers APRs over time. I usually always PIF, so I don't care about APR that much. That said, should I care about APR? Does it impact my credit scores in any way?
You should care about APR enough to know what it is (at least you know which card has the lowest APR or 0% promotional IN CASE you need to carry a balance. However, this is obviously highly discouraged, and the APR on your cards do not affect your credit scores in any way at all.
My current credit scores are as follows:
- 750 Experian FICO 8 (through creditscore.com) Aug 21, 2018
- 739 Equifax VantageScore 3.0 (through CreditKarma) Aug 19, 2018
- 739 TransUnion VantageScore 3.0 (through CreditKarma) Aug 19, 2018
Vantage 3.0 scores from CK will not be used by actual credit bureaus. You can check your real FICO 8 scores for $1 on websites like creditchecktotal.com.
2) How should I choose my 2nd+ CC(s)? Especially looking at 0 AF cash-back CCs issued by banks, CUs and CC companies working with 3 different credit bureaus?
I know from older forum posts that
- CCs issued by banks & credit card companies are better than CCs issues by stores, because the former have higher standards for their users,
- it's a good practice to get 3-5 CCs, then not apply, i.e. garden for at least 1 year, because you want to increase the number of CCs but then you also want to increase your AAoA,
- it's good to get 3 CCs from 3 institutions that work with 3 different credit bureaus, because you want to maximize your pre-application score in each of the 3 cases.
Bearing all this in mind can you recommend any specific CCs that match this criteria from your own credit building experience? As a credit building newbie should I avoid certain banks, or prioritize applying to others? I heard some people hate BoA and say great things about Cap1. Both banks sound more open to negotiating CLI and APR than my current bank (TD Bank), so I'm definitely looking to get my new 1-3 CCs from outside my current bank.
Just for example, these are some recommendations for me from different automated sources (CreditKarma, myFICO, creditscore.com), comments more than welcome:
- American Express Cash Magnet Card (no AF, get $250 cash back after spending $1,000 in 3 months)
- Bank of America Cash Rewards credit card (no AF, 1% - 3% cash back, get $200 cash back after spending $500 in 3 months)
- Discover it Cash Back (no AF, get 5% cash back rotating categories, 1% cash back everything else, APR 0% for 14 months)
- HSBC Cash Rewards Mastercard credit card (no AF, get $150 cash back after spending $500 in 3 months, 1.5% cash back in general)
- Chase Freedom Unlimited (no AF, 1.5% cash back, get $150 cash back after spedning $500 in 3 months)
The first thing I would do is to check different banks for prequalifications. Amex, Discover, Capital 1, Chase, and Citibank are all typically reliable with their prequals, with C1 often credited as the most accurate. C1, Discover, and Amex are also known for being more lenient towards thin files, so I would consider starting with those. Just be aware, C1 will HP from all 3 bureaus. I personally like to recommend people start with Chase because of their 5/24 rule, but it's hard to give any more advice without seeing your true FICO's. IF they are actually as high as CK indicates, it could be worth looking into Chase's Freedom Unlimited card. It's an extremely versatile card you could use as just an okay cashback card, but can be very helpful if you're looking into the points game. 1.5% cashback is typical, while there are quite a few that offer 2%. Decide if you want points or cashback first, then decide if you want to go through the effort of dealing with revolving categories or not. Then check your prequals and see if any cards match your goals. Remember also, BoA prequals are not typically true prequals. Look for a set APR (21.49%) instead of APR ranges (14.49%-21.49%) to make sure it's a true prequal.
Sorry for the lengthy first post on the forum, and thank you in advance for all recommendations & questions! ;-)
[2/2019]
@Anonymous wrote:
@AnonymousHello, credit_economist. I hope you have been enjoying myFICO so far!
I will be addressing your first question.
RE: "Does APR matter if I PIF?"
Most would say that it does doesn't because paying in full allows you not to worry (and I agree!). Doing so is also a GREAT credit-managing habit!
Thank you @disstreetcoolkid200, I am quite enjoying myFICO so far! :-)
Re: APR being important if I ever need to carry a balance, point taken. But most of my target CCs have 0% APR for 12-15 months, allowing me to garden for that period, and then apply for a new card with new 0% APR if I really need it, no?
@Anonymous wrote:
@Anonymous wrote:
@AnonymousHello, credit_economist. I hope you have been enjoying myFICO so far!
I will be addressing your first question.
RE: "Does APR matter if I PIF?"
Most would say that it does doesn't because paying in full allows you not to worry (and I agree!). Doing so is also a GREAT credit-managing habit!
Thank you @disstreetcoolkid200, I am quite enjoying myFICO so far! :-)
Re: APR being important if I ever need to carry a balance, point taken. But most of my target CCs have 0% APR for 12-15 months, allowing me to garden for that period, and then apply for a new card with new 0% APR if I really need it, no?
That's a good point -- you would be fine.
@Anonymous wrote:Thank you @jdbkiang - I immediately checked my remaining FICO scores, and great news: 750 EX, 767 TU, 768 EQ! :-)
Registered HPs: 3 on EX, 0 on TU, EQ.
As stated in OP, I am targeting no AF cash back CCs.
I also checked my prequals using Doctor Credit's list - and got the following results:
- Chase: no offers (I opted out of "pre-screened" offers some time last year),
- BoA: prequal'ed for my target, Bank of America Cash Rewards ($0 AF, 0% APR for 12 months, bonus $200 if spend $500 in 3 months), although as you said, I'm not sure if with BoA this is a "real" prequal (later APR is quoted at 14.99-24.99%),
- Cap1: no offers matching my criteria, suggested 2 cards (both at 24.99% APR),
- Amex: no offers matching my criteria, suggested 3 cards at different APRs (18.74%, 22.49%),
- Discover: 2 offers matching my criteria (both at 24.74% APR).
It seems that I'm getting prequal'ed for very high APRs, and really basic CCs, which leads me to believe most banks don't have my most recent FICO scores (which is fair, considering I've only had my current secured-but-graduating CC for 8 months).
This could just be a result of you having a thin file. Often times, with more age/accounts, banks will give you lower APR's, but with just one card, it's quite possible that they just aren't too sure about you yet, so they give you a higher APR.
1. I would opt back in, or you can possibly use the CardMatch tool. Of course, you can still apply for it either way, but sometimes it's just nice to have the prequal.
2. This is not a true prequal.
3+4. I'd just skip these for now.
5. Since you have a prequal here, it could make sense to go ahead and apply for one of these cards.
Essentially, Discover is your only prequal for now, so it's the safest app to go with for now. Alternatively, if you wanted to give it a shot, I know Amex has a couple 0% APR card that you could try to use as well. Of course, YMMV, and you can always be approved for cards even if you're not prequalified.
So I am thinking the following:
- Apply for Chase Freedom Unlimited (no AF, $150 bonus after $500, 1.5% cash back), because I already have those 3 old HPs on Experian and want to satisfy Chase's 5/24 rule.
- Then apply for Bank of America Cash Rewards (no AF, $200 bonus after $500, 1-3% cash back), because I really want that card.
- Then apply for HSBC Cash Rewards Mastercard credit card (no AF, $150 bonus after $500, 1.5% cash back)
- Then if rejected by any top 3, apply for either American Express Cash Magnet Card (no AF, $250 bonus after $1,000, no other cash back), or Discover it Cash Back ($0 AF, 5% cash back rotating, 1% cash back rest).
- Then if still looking for card 3, maybe apply for a Cap1 card. I put this last because I really want to avoid pulling all 3 credit bureaus if it's not necessary, I don't see any special benefit to Cap 1.
So to ask you follow up questions (and anyone else who wants to chime in):
3. Does the above app spree strategy make sense?
I'm not sure if you know how the 5/24 rule works, but basically you can only open 5 personal cards in the last 24 months. The # of HP's doesn't matter. That being said, if you like Chase's UR program, I would start applying for their cards first, then go to other banks after. If cash back is your priority, Chase really isn't that great at cashback, so you could go for the Discover card first. HSBC doesn't have a lot of DP's, and you're not prequalified for either BoA or Amex, so I'd apply for the Discover card first, then go from there. If C1 doesn't have you prequalified either, it could be a sign to wait before applying as well.
4. Should I first establish a banking relationship with Chase, BoA, etc. or does that not matter for my CC apps at this early state in my credit building?
It depends on your relationship with Chase. If you don't have a lot of money in your accounts, I've seen people denied for premium cards because their deposits with Chase have been too small. On the other hand, if you have sufficient funds in your account, that's obviously not a bad thing either.
Thank you again very much - one step closer to the apps! :-)
@Anonymous wrote:Update:
I just applied for Chase Freedom Unlimited CC, got rejected, waiting for explanation to come in the mail in 7-10 days before I call their reconsideration department.
I then applied for Discover it CC, and got approved with $1,750 CL, which is a big increase for me, as I previously only had $1,500 CL on my secured-but-graduating TD Bank Cash Rewards CC.
So my overall CL just increased by 210% (from $1,500 to $3,250)!
I also just received 2 alerts from Experian telling me that my EX score has been promptly updated already.
So new question:
5. Should I apply for another CC today, this week, in 3 months, or in 6 months?
You could just call recon now or tomorrow instead of waiting.