Need some input please!

[Anonymous]

Hello everyone! I am 20 years old and am currently in college. My yearly income is approximately 20k. I have 3 credit cards and an auto loan. I charge less than 20% of my total credit limit each month (less then 10% utilization of each card). I am interested in getting another card; either the AMEX Blue Cash Everyday, or some store card. I want one of these to diversify my cards a little more, as well as increase my overall credit limit, which is currently $5,700. My Capital One card offers a credit tracker (powered by TransUnion) and it shows I have 16 hard inquiries. I know I know, 16 is a lot...but only 1 is a denial for a credit card from over a year ago, and all the others came from “rate shopping” for my auto loan. My Discover card is the oldest credit line (1 year 8 months) and my Chase card is the youngest (4 months). My average credit line, according to CreditKarma, is 8 months. I have 100% on time payments and nothing negative on my credit reports. I don’t want to apply for another card and wind up getting denied which would just add another hard inquiry on my report. I was planning on waiting another 3 or 4 months to apply…thoughts/suggestions?

Loan:

Balance – $9,988

Cards:

Capital One Visa Platinum - $2,500 CL

Discover It - $2,000 CL

Chase Freedom – $1,200 CL

Scores:

FICO Score – 719

Capital One Credit Tracker (TransUnion) – 673

CreditKarma - 673

[FocusedAndDetermined]

With your present lineup of cards,, many will advise you not to bother with a store card.  Store cards are not considered by some lenders, however they can be beneficial if it is a store that you frequent.  The discount rewards on some store cards far outweigh the rewards on any other card even if you shop through a card portal.  My advice is choose wisely.  Do not get a store card if it's merely to add a TL.

Have you tried for a CLI on any of your existing cards, especially the Discover (since it's the oldest)?  By the time you're ready to apply you should be in good position to try for AMEX.  Who knows by then you may have received a pre-approval from a lender.

[Creditaddict]

1. I don't know what lender doesn't consider a store card.. it's a revolving credit line that is very much calculated into your credit accounts and score.

however, unless you shop at one place a bunch or are looking at a gas card that gets you better rewards than say your discover and chase rotating 5% i don't know that you need one.

2. I would apply for the amex now!

[TRC_WA]

I don't bother with toy limit store cards... I have a Best Buy and Nordstrom... both of which have nice limits and can be upgraded to MC/VISA which I'm expecting later in 2015.

IMHO store cards are good if you frequently shop there and they have a nice limit AND they are upgradeable.  

I have no use for a $200 Target card just to hurt *cough* help? my credit.

[Anonymous]

Thank you everyone for the timely responses! I'm going to hold off on getting a store card since I don't frequently shop at one store. I'll stick to my original plan and wait a couple months to apply for the AMEX just to play it safe. Thanks for the help!

[Creditaddict]

I'd do it now since its jan.

[Themanwhocan]

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@Anonymous wrote:

Thank you everyone for the timely responses! I'm going to hold off on getting a store card since I don't frequently shop at one store. I'll stick to my original plan and wait a couple months to apply for the AMEX just to play it safe. Thanks for the help!

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Wait until your most recent card is at least 6 months old, so your credit lines and inquiries are at least that old. Use that time to optimize your FICO score using the information in this post:  http://ficoforums.myfico.com/t5/General-Credit-Topics/How-do-I-play-the-1-9-Utilization-Game-Please-Help/m-p/2471257#M199479

I assume you want the Amex Blue Cash Everyday inm order to get a high credit limit card. It isn't the best for earning the most cash back, but it is good for a no annual fee American Express card that can eventually obtain a high credit limit.

[Anonymous]

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@Themanwhocan wrote:

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@Anonymous wrote:

Thank you everyone for the timely responses! I'm going to hold off on getting a store card since I don't frequently shop at one store. I'll stick to my original plan and wait a couple months to apply for the AMEX just to play it safe. Thanks for the help!

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Wait until your most recent card is at least 6 months old, so your credit lines and inquiries are at least that old. Use that time to optimize your FICO score using the information in this post:  http://ficoforums.myfico.com/t5/General-Credit-Topics/How-do-I-play-the-1-9-Utilization-Game-Please-Help/m-p/2471257#M199479

I assume you want the Amex Blue Cash Everyday inm order to get a high credit limit card. It isn't the best for earning the most cash back, but it is good for a no annual fee American Express card that can eventually obtain a high credit limit.

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I agree with the waiting idea so it doesn't add to my clump of inquiries. I read the post you suggested and I'll definetly try to do that

[Anonymous]

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@Creditaddict wrote:
I'd do it now since its jan.

This may be a dumb question, but does it being January make a difference? Do they approve more cards in the beginning of the year or something?

[FocusedAndDetermined]

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@Anonymous wrote:

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@Creditaddict wrote:
I'd do it now since its jan.

This may be a dumb question, but does it being January make a difference? Do they approve more cards in the beginning of the year or something?

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Not really, you get the benefit of the TL for the entire year.  Once people have an AMEX, the tendency is to apply in January for maximum backdating benefit.  Say you got your first AMEX in  Nov. '09.  If you're approved for a new one today, then the member since date for the new card will be 01/09.