Go For It or Wait? Bank of America Premium Rewards

[Jazee]

I did an app spree about 3 weeks ago.  Got 1 out of 4 (NFCU Visa).  EX FICO is 728.  I'm in WA State.  I have 5 EX pulls in 2 years, 3 in the past 21 days.  The first statement on my NFCU Visa is going to cut on the 10th or 11th I think so it isn't on my report yet ($3K limit, which will take my total credit limit on 3 cards to $15K).  I was going to wait for another 5 months before coming out of the garden and probably just go NFCU AMEX or Flagship as I'll have 6 months history with them.  Discover pulled EX and letter said too many recent inquiries if I recall.  Wells denied based on settlement I did with them 7 years go.  Chase, I suspect also same as Wells, have some late payment history with them from 5 years ago. B of A I have no negative history with them but also no current account relationship.

But I really wanted a card with good travel benefits (insurance etc) and decent reward structure.  I've found several posts that seem to elude to this card being one of the harder ones to get.

My main question is, is my chance going to be better to apply on this before the new NFCU Visa is reported so causing my average account age to go down and probably have a hit to my score.  Or would it be better to wait at least another couple months before trying for BofA?  I know I have a high chance of getting a second card with NFCU later if BofA denies.  I just have no idea it the brand new account is going to take my chances lower, than they will be in a couple months or more, with BofA?  Should I open a checking account first if now's the time to try?  I'm applying for a Mortgage in a couple years when I move so this will be my last new account.

[Loquat]

You can always try but if you recent spree only yield 1 out of 4, that's maybe a sign that you might want to slow things down a bit. Just remember that these cards (or variations) aren't going away so there's no need to rush.

[Jazee]

I culled through more posts from the past 18 months, there's not a ton out there on this card.  It's a bit of a mystery.  There does seem to be a pattern of people with banking relationships a bit more successful but no one has a clue if you need any account with like $5 in it or $500K in a Merril Lynch account for the relationship to make a difference.

The big mystery to me is still how is the new NFCU Visa going to affect my EX score for the next three months?  Maybe the increase it total credit will offset the hit due to lower average account age?

One of my 5 EX pulls is going to fall off in June. The app spree pulls will be over 3 months old then too.  I wonder if they like at least 30-60 days to pass after pulls as then they know any new approved accounts would be showing up on the report by then?

Seems like the best strategy would be to open a BofA checking now, put some money in it, and go for the app in June when I have no pulls in over 90 days and only 4 pulls in 2 years on my account. 

But then you read something like this and realize it's a bit of a crap shoot despite this card having a reputation for difficult approvals.

https://ficoforums.myfico.com/t5/Credit-Card-Approvals/Bank-of-America-Premium-Rewards-Approval/m-p/...

(EX 700)

[Anonymous]

Dunno about BoA, but Chase and Citi like 6+ months minimum to avoid inquiry denials (typically)

I know deposits/investments (3-5 digit thresholds) with Chase can lax UW, probably same for BoA. The PR seems to be relationship based, so it may be unlikely to be approved for.

[Anonymous]

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@Jazee wrote:

I did an app spree about 3 weeks ago.  Got 1 out of 4 (NFCU Visa).  EX FICO is 728.  I'm in WA State.  I have 5 EX pulls in 2 years, 3 in the past 21 days.  The first statement on my NFCU Visa is going to cut on the 10th or 11th I think so it isn't on my report yet ($3K limit, which will take my total credit limit on 3 cards to $15K).  I was going to wait for another 5 months before coming out of the garden and probably just go NFCU AMEX or Flagship as I'll have 6 months history with them.  Discover pulled EX and letter said too many recent inquiries if I recall.  Wells denied based on settlement I did with them 7 years go.  Chase, I suspect also same as Wells, have some late payment history with them from 5 years ago. B of A I have no negative history with them but also no current account relationship.

But I really wanted a card with good travel benefits (insurance etc) and decent reward structure.  I've found several posts that seem to elude to this card being one of the harder ones to get.

My main question is, is my chance going to be better to apply on this before the new NFCU Visa is reported so causing my average account age to go down and probably have a hit to my score.  Or would it be better to wait at least another couple months before trying for BofA?  I know I have a high chance of getting a second card with NFCU later if BofA denies.  I just have no idea it the brand new account is going to take my chances lower, than they will be in a couple months or more, with BofA?  Should I open a checking account first if now's the time to try?  I'm applying for a Mortgage in a couple years when I move so this will be my last new account.

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I also believe if you do not have an account with them that they have a not set in stone 3/12 rule for new accounts, but will definitely use that if they feel like you have had too many new accounts. Apparently their premium rewards card is their most difficult to obtain card, so if you are getting denials for other, easier cards to get, I would hold off and let things cool down. If you have a relationship with BoA, they have a not set in stone 7/12 rule for new accounts. I know you said you only got 1 of 4 cards recently, but just in case you have other new revolvers in the past 12 months, it is something good to know.

[coldfusion]

You have a thin profile and you just went through an app spree where your success rate was 1 approval out of 4 applications, with a $3K limit. That in itself is an indicator that you need to hold off from applying for more cards for at least another 4-6 months.

As has been pointed out BoA uses a higher standard to approve this card than for their other core cards;  applicants with scores in the 730 range can and do get approvals but across the history of the card there have also been a lot of denials to applicants with 800+ scores.   Emperically odds of approval with BoA appear to be better if the applicant currently has other accounts with them but I can't quantify that.

I don't know where waiting a couple of months would materially impact your odds of approval.

[Aim_High]

Definitely definitely wait. 

With help of the community, I strategically planned for this card and was approved. I hedged my bets ... despite being a 20+ year credit customer and former primary banking customer for over a decade.  As a bare minimum, a checking account seems to really help but I wouldn't bother with a $5 deposit only.  What really helps even more is to deposit at least $20K and start building a Preferred Rewards relationship. I moved deposits into Merrill Edge and waited for them to age 90 days (to qualify for Preferred Rewards) before applying.  Not saying that is necessary, but if you can do it, it definitely helps.  That shows long term commitment much more than a $5 deposit. The Premium Rewards card works best when combined with the Preferred Rewards bonuses, where you can earn 25%, 50%, or 75% above the base rewards structure. 

The 3/12 new accounts (account holders) and 7/12 (non-account holders) rules may be imposed, so look back at your past activity. Right now, you aren't even close. This is a card you usually need to plan for in the mid to long term.  Good luck!

[Jazee]

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@Aim_High wrote:

This is a card you usually need to plan for in the mid to long term.  Good luck!

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Well, I now have no plans to apply for any credit products from anyone that pulls from Experian for the next year, so I waited for my UTI to go from 8% to 3%, opened a checking account at BofA and an investment account at Merril realizing this was a total Hail Mary, and these approvals in the low 700's are typically from people with a large, long banking relationship with BofA and Merril.  

My guess was right, but you never know until you try.  Instant denial.  726 EX FICO 8.  $105K income.  7% DTI (29% including rent).  3% UTI.  No banking history or sizeable deposits with BofA or Merril.  I will keep the account open with them and maybe start doing direct deposit and maybe move an IRA to Merril.  

Like you said, this is a mid to long-term card to plan for, so that's what I'll do. If you get a sizeable account with them, the bonus reward structure looks quite attractive, but let's be honest, that's because they are making more money off you to compensate from your large investment account balances, etc.  For the short-term for building credit I'll stick with NFCU products, relatively easier approvals and better terms, and only hits TU with HPs while most the other major banks pull from EX and EQ.  So I'll let my EX file cool down for at least a year now that Discover, Chase, Wells, and BofA have put HPs on EX in the past two months.  I wonder what it is about EX being so popular with the banks?  Maybe something to do with the EQ hack a few years ago?

[Anonymous]

Sorry about the denial. I wish lenders would leave EX alone too. It's my worst. This doesn't have anything to do with EQ. I had a mini spree back in 2014 when Amex, Chase(chase only did one pull then for me), USAA, and Capital one. All Ex pulls including Capital one triple pull. I wish I had this thread below. 

https://ficoforums.myfico.com/t5/General-Credit-Topics/The-quot-Which-Banks-Pull-Which-Report-For-Ap...

it's very helpful.  I plan to get a boa card later this year after 4 EX inquiries fall off, and 3 will turn 1 so I'm left with only 3 scoreable inquiries and I'll be 2/12.

[FinStar]

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@Jazee wrote:

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@Aim_High wrote:

This is a card you usually need to plan for in the mid to long term.  Good luck!

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Well, I now have no plans to apply for any credit products from anyone that pulls from Experian for the next year, so I waited for my UTI to go from 8% to 3%, opened a checking account at BofA and an investment account at Merril realizing this was a total Hail Mary, and these approvals in the low 700's are typically from people with a large, long banking relationship with BofA and Merril.  

My guess was right, but you never know until you try.  Instant denial.  726 EX FICO 8.  $105K income.  7% DTI (29% including rent).  3% UTI.  No banking history or sizeable deposits with BofA or Merril.  I will keep the account open with them and maybe start doing direct deposit and maybe move an IRA to Merril.  

Like you said, this is a mid to long-term card to plan for, so that's what I'll do. If you get a sizeable account with them, the bonus reward structure looks quite attractive, but let's be honest, that's because they are making more money off you to compensate from your large investment account balances, etc.  For the short-term for building credit I'll stick with NFCU products, relatively easier approvals and better terms, and only hits TU with HPs while most the other major banks pull from EX and EQ.  So I'll let my EX file cool down for at least a year now that Discover, Chase, Wells, and BofA have put HPs on EX in the past two months.  I wonder what it is about EX being so popular with the banks?  Maybe something to do with the EQ hack a few years ago?

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Well, it goes to show that plenty of individuals with experience had already provided great advice, but at least now you know for the long term.

Also, BoA isn't exclusive to EX.  They're known to pull TU (SP but used to be HP) for CLI requests and also used for biz applications + the rare instance when EX isn't available.  So, it may seem from your perspective that EX is popular with lots of banks when in reality they have access to all 3 depending on their CRA contracts and the lender itself.  Also, a variety of CRA accessibility may be based upon your geographical area so lots of variables at play.