@orciaga wrote:As a thirty-something, my credit history and file are relatively short and thin. Over the past two years I’ve been responsible with both of my cards, always paid in full on time, kept utilization typically under 5%. In 2020 I started a legitimate LLC design business and have averaged $14,000 per year. In 2022 I expect to make less than $14k, likely around $7-$10k total. The business turns 2 years old in a few days.
Current Cards -
- Truist / $600 Secured - 07/20 ($19 AF, will close this in a year or two)
- Navy Federal Cash Rewards at 1.5% / $5,000 - 08/21 (just graduated from nRewards, will do CLI after new approvals)
Future cards - This is the ranked order I have in my head, but it might not be the best strategy.
- Chase Ink Business Cash (only for tv/internet/phone 5%)
- Chase Amazon Prime Rewards ($2k/yr avg spend)
- AMEX Blue Business Cash (2% for all other biz spend)
- Chase Freedom Flex
- Potentially one of either US Bank Cash+ Secured/NFCU More Rewards/AMEX Cash Magnet/Walmart Rewards Capitol One. If I went the AMEX Cash Magnet route, I would likely product change my NFCU Cash Rewards to More Rewards.
Oldest Acct - 1 yr 9 mos
Newest Acct - 9 mos
Average Age - 1 yr 3 mos
EX 8 - 728
EQ 9 - 767
TU 9 - 743 (via Apple Card $3k pre-approval)
5/24 Status - 2/24 now and will be 1/24 after July. Only the two hard inquries since 07/20.
$14,000 business income
$33,000 personal income
$47,000 total income
I have a 7 month old business checking acct with Chase, but no personal checking. No relationship with AMEX. Chase doesn’t give me any Star pre-approvals. Like many others, the Amazon pre-approval isn’t able to see my credit report. AMEX pre-approved for the BCE, BCP, and Gold a few weeks ago, but I’m not interested in those. I would be interested in opening a business checking account with them, especially if it would help with approvals.
Not a huge spender so low starting limits don’t necessarily scare me, and I would be able to meet all SUBs… perhaps minus Chase Ink. I can likely run $2k-$3 through a card for an auto-CLI if needed.
Time-wise, how should I space the applications out? Would you apply in a different order from what I've listed? Can I realistically get all of these in 2022 or should I plan on apps going into 2023 as well? It's ok if it takes longer, I'm just impatient. I want to do this as fast as possible, as smart as possible, but as slow as I need to. Ideally, I would like to get them all sooner rather than later and let them age together, but I don't want to freak the lenders out and have them cancel cards. Looking at me from a lender's perspective, I realize I probably still look like somewhat of a risk. After getting these cards there are no plans to add more in the future.
Thanks for taking the time to read this. I've read these forums for a few years and the knowledge shared on here has been incredibly helpful.
1. You should proceed slowly and gradually. Your plans may will change over time. The first card you apply for should be one that definitely fits your needs at this time.
2. From your post I cannot tell whether you need a personal card or a business card. You should keep business and personal spending separate.
3. Your business isn't big enough to earn the minimum spend on the Ink card, so for that and other reasons you should not be going for that at this time.
4. Once you tell us what you want to accomplish with your next card, we can advise you on which card would best fit your needs.
@orciaga wrote:Apologies if I was confusing or unclear. My plan is to apply for the 3 listed personal and 2 listed business cards over time. All personal and business spend are currently kept separate.
Primarily, I want to grow my thin and short personal file while concurrently establishing business credit. Secondarily, I want to earn cash back on the things I have to buy anyway. Low starting limits don’t necessarily scare me, not a huge spender ($2.5k personal avg/mo, $100.00 avg/mo business debit). SUBs are definitely nice, but I’m most interested in growing my sad little file over time.
In the next 1-3 months I’ll have roughly $20k in renovation costs. Making minor upgrades to the home office and covering the deck outside so I can work outdoors sometimes. While I view this as a valid business expense, will Chase?
It's not a question of what Chase will consider it @orciaga . Chase isn't going to look at it that closely. It's a question of what your bookkeeper or accountant will consider it. Using a business card to pay personal expenses causes tax, bookkeeping, accounting, and legal problems.
If yes, then I can meet the $7,500 spend. If no, then it will likely be a long time until I could meet the spend requirement again. Ink is my first targeted card because of this, and because I’ll spend about $300/mo on cable/internet/phone to earn 5% cash back. My business will never be a big spender, which is unfortunate in this case.
On the personal side, I want both the Amazon Prime Rewards and the Chase Freedom Flex because they fit with my spending habits. The order to apply here isn’t important to me (likely spend more on Amazon overall), but I’d like to apply first for whichever will give me the best chance to be approved.
Of the 3 Chase cards you're mentioning -- Ink, Amazon Prime, and Chase Freedom Flex -- the Amazon Prime is IMHO the easiest to get at the moment, and with pretty generous starting limits.
Is the underwriting more favorable with the Amazon card?
Presently, yes.
I honestly don’t know. If both cards are equal, then go with the higher SUB, right?
No.
After that, mid-to-long-term plans are for the AMEX Blue Business Cash
This card is an excellent card because all the non-bonus category stuff can still get you 2% cash. It's probably a better card for you than the Ink IMHO.
and one card TBD. The BBC would be used for everyday business spend, except for cable/internet/phone, which would be on the Ink.
If I can get all the approvals over time, I don’t have plans to apply for any more. I don’t want more than 4-6 personal and 2-3 business cards.
This is how and when I’d like to apply:
Chase Ink Business Cash – May
Amazon Prime Rewards or CFF – Mid June
CFF or Amazon Prime Rewards – Sept/October
AMEX Blue Business Cash – Sept/October
Card TBD – Late 2022 or Early 23?
Is this too fast?
IMHO no it's not too fast if you just apply for the Chase Amazon Prime and the Amex Business Cash. IMHO you could go out and apply for both of them this week. But I do think your game plan is over ambitious because you might not need that many cards so soon, and your card interests may change over time.
I have no understanding of how the business apps effect the approval odds of personal apps and vice versa.
The inquiries hurt you just like any other inquiries. Other than that, no effect.
I can begrudgingly space each card app out to 6 months if that’s the best strategy. If business apps have little bearing on personal apps then I can space them closer together?
I don't know how inquiries affect your scores. Every profile is different in this regard. In my profile they hardly ever have any apparent effect, because I always already have too many inquiries.
@orciaga wrote:After mulling it over today, I’m 90% leaning toward your suggestion of going for the Chase Amazon Prime and AE Blue Business Cash this week. As you said, the BBC likely is better for my overall needs. And if the Amazon card is easier to get then it makes sense to me to go for it over the Flex and get in the Chase ecosystem. Should I apply for the Chase or American Express first? And would it be best to space applications a day or two apart?
You can probably get a lot more cash back on the BBC, with 2% on everything across the board.
The Amazon Prime isn't really in the Chase ecosystem, since it doesn't have UR's, but it's an excellent card, giving you 5% on everything Amazon, and 2% on drug stores, gas, and dining. And it's got (a) car rental collision insurance and (b) no foreign transaction fees.
And both cards have no annual fee