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How long should I wait before applying for additional credit cards?

Sparon
Valued Member

How long should I wait before applying for additional credit cards?

I have been an authorized user on a Citi Dividends World Elite MasterCard for about 1 year, and I have been the only one using or making payments on that account for the full year. The account has a $38,000 credit limit, and has always had low utilization (less than 10%, usually closer to 3%.), is always paid in full each month (except for a short period in January - March where I took advantage of a 0% APR promo, and drove it up to a little over $3,000), and has been open for about a decade. This account is currently sitting with a $0 balance, and the statement has been cut at that amount. I have no intention of ever using this card again.

 

On June 26th of this year, I was approved for an American Express Cash Magnet (1.5% cash back on everything) with a $15,000 credit limit. The first statement has not yet been cut, but I have already made one payment on it (~$1300), and it is currently sitting with a balance just under $500, which I intend to pay in full before the statement cuts to keep my utililization low. This is abnormally high spending for me, as I am usually under $1000 total each month.

 

On July 4th of this year, I realized that I would have rather applied for the Citi Double Cash Card (2% cash back on everything), and—testing my luck—decided to apply anyway. I was approved on July 18th with a $500 credit limit. Not much, but I'll take it. I'll just have to use the Cash Magnet for the occasional larger purchases.

 

Shortly afterward, I tried to pre-qualify for the Discover It Cash Back card to take advantage of the rotating categories. I was denied due to too many recent inquiries. This was a soft pull, though.

 

I have no other current credit accounts of any form.

 

My credit scores are as follows: 706 EX, 727 EQ, 738 TU

Inquiries (1 Month): 2 EX, 0 EQ, 0 TU

Inquries (12 Month): 4 EX, 0 EQ, 1 TU

Inquiries (24 Month): 5 EX, 0 EQ, 1 TU

 

1 Open account (the Citi Dividends) is currently showing on my reports, with a current balance of $0.

 

There are no negative factors on my credit reports other than the aforementioned inquiries.

 

Annual Income: ~$67,000 (~$35,000 personal)

Rent: $150/month (Single room renting from my parents)

Assets: ~$130,000 (~$25,000 in cash savings)

 

My goal is to apply (and get approved) for the following 3 cards (in priority order):

1. Discover It Cash Back (for rotating categories and first year cashback match)

2. Something with no foreign transaction fee for when I am travelling abroad (was thinking Capital One Quicksilver, as I prefer straight cash back over travel rewards.) I understand the Discover card has no foreign transaction fee, either, but acceptance abroad is spotty at best.

3. Something from the Visa network, just so I can have a card from each of the 4 major networks. (maybe the Best Buy Visa, as I do shop at Best Buy a lot)

 

I am afraid to start applying for these immediately, as I will probaby get denied, but I do want to get all of these as quickly as possible. I know I will never spend beyond my means, and will always make each payment on time, but I get that the creditors do not know this.

 

The conventional wisdom is to wait 6 months between applications, but I really want to knock at least one of these out of the way well before that.

 

Would it make sense to try after my first American Express statement reports to the credit bureaus to show that I'm not racking up huge amounts of debt right now? What are some strategies that might help me get through my list quicker?

   06/26/2020       07/18/2020       07/23/2020       11/18/2020

       $1,000                $1,000                  $500                  $16,000


   11/21/2020

       $1,000


FICO8 Scores:


HARD INQUIRIES:
3 Month:
6 Month:
12 Month:
24 Month:

AU Accounts:
Capital One, $15,500, 12/22/1999
Discover, $24,000, 01/25/2000
Citi, $40,000, 10/23/2002

Message 1 of 9
8 REPLIES 8
Brian_Earl_Spilner
Community Leader
Mega Contributor

Re: How long should I wait before applying for additional credit cards?

Amex won't report for a couple of months, so unless the Citi is reporting, it looks like you only have the AU card. You could apply now. The 6 month rule is more for lenders that don't like new apps like Chase, Barclay, and US Bank.




Message 2 of 9
M_Smart007
Epic Contributor

Re: How long should I wait before applying for additional credit cards?


@Sparon wrote:

I have been an authorized user on a Citi Dividends World Elite MasterCard for about 1 year, and I have been the only one using or making payments on that account for the full year. The account has a $38,000 credit limit, and has always had low utilization (less than 10%, usually closer to 3%.), is always paid in full each month (except for a short period in January - March where I took advantage of a 0% APR promo, and drove it up to a little over $3,000), and has been open for about a decade. This account is currently sitting with a $0 balance, and the statement has been cut at that amount. I have no intention of ever using this card again.

 

On June 26th of this year, I was approved for an American Express Cash Magnet (1.5% cash back on everything) with a $15,000 credit limit. The first statement has not yet been cut, but I have already made one payment on it (~$1300), and it is currently sitting with a balance just under $500, which I intend to pay in full before the statement cuts to keep my utililization low. This is abnormally high spending for me, as I am usually under $1000 total each month.

 

On July 4th of this year, I realized that I would have rather applied for the Citi Double Cash Card (2% cash back on everything), and—testing my luck—decided to apply anyway. I was approved on July 18th with a $500 credit limit. Not much, but I'll take it. I'll just have to use the Cash Magnet for the occasional larger purchases.

 

Shortly afterward, I tried to pre-qualify for the Discover It Cash Back card to take advantage of the rotating categories. I was denied due to too many recent inquiries. This was a soft pull, though.

 

I have no other current credit accounts of any form.

 

My credit scores are as follows: 706 EX, 727 EQ, 738 TU

Inquiries (1 Month): 2 EX, 0 EQ, 0 TU

Inquries (12 Month): 4 EX, 0 EQ, 1 TU

Inquiries (24 Month): 5 EX, 0 EQ, 1 TU

 

1 Open account (the Citi Dividends) is currently showing on my reports, with a current balance of $0.

 

There are no negative factors on my credit reports other than the aforementioned inquiries.

 

Annual Income: ~$67,000 (~$35,000 personal)

Rent: $150/month (Single room renting from my parents)

Assets: ~$130,000 (~$25,000 in cash savings)

 

My goal is to apply (and get approved) for the following 3 cards (in priority order):

1. Discover It Cash Back (for rotating categories and first year cashback match)

2. Something with no foreign transaction fee for when I am travelling abroad (was thinking Capital One Quicksilver, as I prefer straight cash back over travel rewards.) I understand the Discover card has no foreign transaction fee, either, but acceptance abroad is spotty at best.

3. Something from the Visa network, just so I can have a card from each of the 4 major networks. (maybe the Best Buy Visa, as I do shop at Best Buy a lot)

 

I am afraid to start applying for these immediately, as I will probaby get denied, but I do want to get all of these as quickly as possible. I know I will never spend beyond my means, and will always make each payment on time, but I get that the creditors do not know this.

 

The conventional wisdom is to wait 6 months between applications, but I really want to knock at least one of these out of the way well before that.

 

Would it make sense to try after my first American Express statement reports to the credit bureaus to show that I'm not racking up huge amounts of debt right now? What are some strategies that might help me get through my list quicker?


Since you have opened a few accounts already, I would probably hold off in this environment. JMO

Message 3 of 9
Birdman7
Super Contributor

Re: How long should I wait before applying for additional credit cards?

I think you can squeeze in another, but it’s gotta be somebody that pulls Equifax or transunion. Can’t be the best buy because that’s from Citibank. Can’t be capital one because they pull all three bureaus.

Go consult the thread which banks pull which bureaus. Pick out one or two that pull out equifax or transunion. Then check back with us 1st to make sure it’s not someone who is too conservative.
-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 4 of 9
Birdman7
Super Contributor

Re: How long should I wait before applying for additional credit cards?

Oh and in answer to your question, you do it in 12 months cycles for best results in my opinion. 

-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 5 of 9
Sparon
Valued Member

Re: How long should I wait before applying for additional credit cards?

YOLO'd it and got denied for the Discover It Student Cash Back. Called the backdoor recon line, and got approved. $500 credit limit again, but I'll take it.

 

Oddly enough, no Hard Inquiry is showing up on my credit reports. Maybe it will later, but right now, there is nothing...

   06/26/2020       07/18/2020       07/23/2020       11/18/2020

       $1,000                $1,000                  $500                  $16,000


   11/21/2020

       $1,000


FICO8 Scores:


HARD INQUIRIES:
3 Month:
6 Month:
12 Month:
24 Month:

AU Accounts:
Capital One, $15,500, 12/22/1999
Discover, $24,000, 01/25/2000
Citi, $40,000, 10/23/2002

Message 6 of 9
Birdman7
Super Contributor

Re: How long should I wait before applying for additional credit cards?

Well done congratulations!
-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 7 of 9
AllZero
Super Contributor

Re: How long should I wait before applying for additional credit cards?


@Sparon wrote:

YOLO'd it and got denied for the Discover It Student Cash Back. Called the backdoor recon line, and got approved. $500 credit limit again, but I'll take it.

 

Oddly enough, no Hard Inquiry is showing up on my credit reports. Maybe it will later, but right now, there is nothing...


Congratulations on your approval!

Message 8 of 9
Remedios
Moderator

Re: How long should I wait before applying for additional credit cards?

Congrats!

As OP already started an approval thread, this one is now closed for further messages.

Message 9 of 9
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