Pre-approved for offers, should I get a 3rd credit card?

[Anonymous]

Hi everyone, I started my credit journey last November, and now I'm considering what next steps I should be taking to further improve my credit score. I just got preapproved for a few credit cards, and I am wondering whether I should accept the offer at this time. 

The cards I got preapproved for are:

Discover it® Student Cash Back

Bank of America® Customized Cash Rewards credit card, Bank of America® Premium Rewards® credit card, etc (have had them reject me before, so I'm not that sure)
American Express Blue Cash Everyday® Card, Cash Magnet® Card, Amex EveryDay® Credit Card

I got a secured credit card with a $400 credit line at Capital One in Nov 2020. I don't really need to use credit but make one small purchase every two months with the credit card just to keep the account active. I applied for an Apple Card this April and got a $1,500 credit line. I use the card for cashback but pay the balance so that I have a $0 statement. Capital One just increased my credit line to $700, so my total credit line is $2,100.

My total credit utilization ranges from 0-3%. My FICO score from Experian is 716, my Experian VantageScore 3.0 is 722 from credit.com, and my creditwise score (TransUnion) is 708.

I currently have five inquiries in the last 2 years:

Oct ’19 - Verizon run a credit check when I opened my account

Nov’ 20 - BofA when they did not approve me for a credit card

Nov’ 20 - Capital One for the Secured card,

April ’21 - Golden Sachs for the Apple Card,

April ’21 - Discover when I tried applying for the same student card and got denied

Only the Discover inquiry shows on my Experian report and the Discover inquiry doesn’t show on my TransUnion report.

I have no intention of buying anything with installments in the near future (so I’ll have very low credit utilization), and my goal is to have a great score that I will use to rent a place in two years or more. In terms of my credit score and my long-term goal, would it be better for me to get another credit card and increase my credit line, or stay with two cards? Would having three accounts now instead of in 6 months help so that my average account age doesn’t drop again?

[Anonymous]

Hi everyone, I started my credit journey last November, and now I'm considering what next steps I should be taking to further improve my credit score. I just got preapproved for a few credit cards, and I am wondering whether I should accept the offer at this time. 

The cards I got preapproved for are:

Discover it® Student Cash Back

Bank of America® Customized Cash Rewards credit card, Bank of America® Premium Rewards® credit card, etc (have had them reject me before, so I'm not that sure)
American Express Blue Cash Everyday® Card, Cash Magnet® Card, Amex EveryDay® Credit Card

I got a secured credit card with a $400 credit line at Capital One in Nov 2020. I don't really need to use credit but make one small purchase every two months with the credit card just to keep the account active. I applied for an Apple Card this April and got a $1,500 credit line. I use the card for cashback but pay the balance so that I have a $0 statement. Capital One just increased my credit line to $700, so my total credit line is $2,100.

My total credit utilization ranges from 0-3%. My FICO score from Experian is 716, my Experian VantageScore 3.0 is 722 from credit.com, and my creditwise score (TransUnion) is 708.

I currently have five inquiries in the last 2 years:

Oct ’19 - Verizon run a credit check when I opened my account

Nov’ 20 - BofA when they did not approve me for a credit card

Nov’ 20 - Capital One for the Secured card,

April ’21 - Golden Sachs for the Apple Card,

April ’21 - Discover when I tried applying for the same student card and got denied

Only the Discover inquiry shows on my Experian report and the Discover inquiry doesn’t show on my TransUnion report.

I have no intention of buying anything with installments in the near future (so I’ll have very low credit utilization), and my goal is to have a great score that I will use to rent a place in two years or more. In terms of my credit score and my long-term goal, would it be better for me to get another credit card and increase my credit line, or stay with two cards? Would having three accounts now instead of in 6 months help so that my average account age doesn’t drop again?

[SouthJamaica]

In my opinion, no. You should wait a while. Just keep doing what you're doing with your present cards. Your 6 month idea sounds perfect.

[Openwater]

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@Anonymous wrote:

Hi everyone, I started my credit journey last November, and now I'm considering what next steps I should be taking to further improve my credit score. I just got preapproved for a few credit cards, and I am wondering whether I should accept the offer at this time. 

The cards I got preapproved for are:

Discover it® Student Cash Back

Bank of America® Customized Cash Rewards credit card, Bank of America® Premium Rewards® credit card, etc (have had them reject me before, so I'm not that sure)
American Express Blue Cash Everyday® Card, Cash Magnet® Card, Amex EveryDay® Credit Card

I got a secured credit card with a $400 credit line at Capital One in Nov 2020. I don't really need to use credit but make one small purchase every two months with the credit card just to keep the account active. I applied for an Apple Card this April and got a $1,500 credit line. I use the card for cashback but pay the balance so that I have a $0 statement. Capital One just increased my credit line to $700, so my total credit line is $2,100.

My total credit utilization ranges from 0-3%. My FICO score from Experian is 716, my Experian VantageScore 3.0 is 722 from credit.com, and my creditwise score (TransUnion) is 708.

I currently have five inquiries in the last 2 years:

Oct ’19 - Verizon run a credit check when I opened my account

Nov’ 20 - BofA when they did not approve me for a credit card

Nov’ 20 - Capital One for the Secured card,

April ’21 - Golden Sachs for the Apple Card,

April ’21 - Discover when I tried applying for the same student card and got denied

Only the Discover inquiry shows on my Experian report and the Discover inquiry doesn’t show on my TransUnion report.

I have no intention of buying anything with installments in the near future (so I’ll have very low credit utilization), and my goal is to have a great score that I will use to rent a place in two years or more. In terms of my credit score and my long-term goal, would it be better for me to get another credit card and increase my credit line, or stay with two cards? Would having three accounts now instead of in 6 months help so that my average account age doesn’t drop again?

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agreed with @SouthJamaica , garden for a bit. Your profile is still thin and needs some time to mature. Grow what you have and re-evaluate in 6 months. If you don't need a card, don't get it. Wait until you need and use SUBs to your advantage. 

[Openwater]

Hi everyone, I started my credit journey last November, and now I'm considering what next steps I should be taking to further improve my credit score. I just got preapproved for a few credit cards, and I am wondering whether I should accept the offer at this time. 

The cards I got preapproved for are:

Discover it® Student Cash Back

Bank of America® Customized Cash Rewards credit card, Bank of America® Premium Rewards® credit card, etc (have had them reject me before, so I'm not that sure)
American Express Blue Cash Everyday® Card, Cash Magnet® Card, Amex EveryDay® Credit Card

I got a secured credit card with a $400 credit line at Capital One in Nov 2020. I don't really need to use credit but make one small purchase every two months with the credit card just to keep the account active. I applied for an Apple Card this April and got a $1,500 credit line. I use the card for cashback but pay the balance so that I have a $0 statement. Capital One just increased my credit line to $700, so my total credit line is $2,100.

My total credit utilization ranges from 0-3%. My FICO score from Experian is 716, my Experian VantageScore 3.0 is 722 from credit.com, and my creditwise score (TransUnion) is 708.

I currently have five inquiries in the last 2 years:

Oct ’19 - Verizon run a credit check when I opened my account

Nov’ 20 - BofA when they did not approve me for a credit card

Nov’ 20 - Capital One for the Secured card,

April ’21 - Golden Sachs for the Apple Card,

April ’21 - Discover when I tried applying for the same student card and got denied

Only the Discover inquiry shows on my Experian report and the Discover inquiry doesn’t show on my TransUnion report.

I have no intention of buying anything with installments in the near future (so I’ll have very low credit utilization), and my goal is to have a great score that I will use to rent a place in two years or more. In terms of my credit score and my long-term goal, would it be better for me to get another credit card and increase my credit line, or stay with two cards? Would having three accounts now instead of in 6 months help so that my average account age doesn’t drop again?

[GrandBay]

@Anonymous  I would add that maybe you should add some diversity to your profile. You did not mention student loans and/or car note. I am assuming you are in undergrad? I would recommend adding a credit builder loan or SSL for 12 months. Credit Mix is a small part of your overall score (10%) but most folks report experiencing huge gains (35 - 45 pts). This can be done with a SP. During that 12 month period you will garden and watch your profile mature and the CapOne graduate. At the end of 12 months you should then apply for a Chase card while you are under their 5/24 rule. After being approved by Chase you should then pre qualify for AMX & then garden again for 6 months and you will be ready for anything.