Preparing to apply for CSP...what do you think?

[MrPSS]

Hey everyone, this is one of my favorite places to get advice on credit topics so thank you all for being so great! I'm hoping that some of the top contributors that I enjoy following will chime in here, but would be great to get multiple opinions. 

My goal: Approval for the CSP (Chase Sapphire Preferred) credit card with $5K SL.

Reasoning: Travel rewards and redemptions are much better than my freedom unlimited. (+25% redemption on points, 1:1 exchange for other programs, etc) In addition, I eat out a lot and the 2X points on travel and dining would be huge. I plan to use both my freedom unlimited and the CSP cards to make my earning potential the greatest. ie. CSP for ALL travel and dining, freedom unlimited for everything else and then combine points to redeem for travel at the rate of +25%.

Can you help me shed some light on my approval odds and/or and red flags, and make suggestions? I'd like to apply for the card exactly one month from now since all of my accounts new statements come out around the 19th, 20, 21 of the month.

My current credit profile:

Experian FICO 8 Score: 619

Most recent missed payment: 3 months ago

Most recent collection account: 3 months ago (resolving to get removed this week)

+ 1 collection account for $139 from cable provider (getting it deleted this week)

+ 1 collection account for $324 from verizon (also going to try and get it deleted this week)

Total revolving credit lines: $3800

+ Chase freedom unlimited $1K limit, 12% utilization (will hit 2yrs old on May 1 2018, never late)

+ Target Red card $300 limit, 25% utilization (will hit 2yrs Sep 2018, 1-30 day late in Dec 2017)

+ Credit One Bank Visa $1700 limit, 63% ultilization (will be 4yrs old on May 1 2018, never late)

+ Credit One Bank Mastercard $800 limit, 61% ultilization (will be 2yrs old on May 1 2018, never late)

Total credit currently available: $2,036 (46.42% total utilization)

2 installment accounts:

 + 1 Chase auto lease account for my vehicle (only $1,051 left on it and never late)

 + 1 santander joint auto loan account (2yrs 3 mo old, was 60 days late in Jan 2018, $12,345 left on it)

3 hard inquiries in the last 2 years, one falling off May 8, 2018

Income: ~$45K/yr give or take 3-4 or $87K/yr if I include my partners income

What do you think my chances are of getting approved for the CSP in about a month from now, once the two collection accounts are gone and I pay down the two credit one accounts to around 45% each? Also, should I ask for a CLI on my freedom unlimited before trying to get the CSP or after?

Thank you!!

[FinStar]

Based on the information you provided, I would gauge how your overall CR profile looks once any potential negative items are removed. Some of the other recently reported lates (i.e. Santander loan) may also hinder any approval odds. Any CLIs with Chase are HP with no guarantee you'd receive the expected bump.

The other item that may hinder your chances for next month is that there doesn't appear to be any revolving tradelines at (or above) $5K. Typically Chase is not known to handout a $5K SL if there isn't any history that shows you've managed cards at that similar level.

[UncleB]

Hi @MrPSS, I've restored your thread to the forum.  The multiple edits caused it to get flagged by the filter.

--UB

[Anonymous]

Honestly...you chances are close to nil.

Its already been pointed out that you don't currently have any credit lines greater than the mininum $5,000 and Chase usually requires you to demonstrate your management of a similarly sized tradeline before they extend credit.

But more importantly, even if you manage to get the three collections removed from your credit report you will still have a recent major derogatory (missed payment 3 months ago) on your report.  Since payment history is the largest component of FICO score calculation, a missed payment severely hurts your scores and it takes considerable time for your score to recover although the effect of the missed payment will fade with time.  Right now your score is firmly planted in "sub prime" territory and the CSP is a premium card.  Perhaps you can write a goodwill letter to the creditor requesting removal of the reported missed payment but I don't see how you'd be approved with such a major derogatory.

Also, you'd be in a better position if you reduce the utilization on the two Capital One cards to below 28.9%.

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@MrPSS wrote:

Hey everyone, this is one of my favorite places to get advice on credit topics so thank you all for being so great! I'm hoping that some of the top contributors that I enjoy following will chime in here, but would be great to get multiple opinions. 

My goal: Approval for the CSP (Chase Sapphire Preferred) credit card with $5K SL.

Reasoning: Travel rewards and redemptions are much better than my freedom unlimited. (+25% redemption on points, 1:1 exchange for other programs, etc) In addition, I eat out a lot and the 2X points on travel and dining would be huge. I plan to use both my freedom unlimited and the CSP cards to make my earning potential the greatest. ie. CSP for ALL travel and dining, freedom unlimited for everything else and then combine points to redeem for travel at the rate of +25%.

Can you help me shed some light on my approval odds and/or and red flags, and make suggestions? I'd like to apply for the card exactly one month from now since all of my accounts new statements come out around the 19th, 20, 21 of the month.

My current credit profile:

Experian FICO 8 Score: 619

Most recent missed payment: 3 months ago

Most recent collection account: 3 months ago (resolving to get removed this week)

+ 1 collection account for $139 from cable provider (getting it deleted this week)

+ 1 collection account for $324 from verizon (also going to try and get it deleted this week)

Total revolving credit lines: $3800

+ Chase freedom unlimited $1K limit, 12% utilization (will hit 2yrs old on May 1 2018, never late)

+ Target Red card $300 limit, 25% utilization (will hit 2yrs Sep 2018, 1-30 day late in Dec 2017)

+ Credit One Bank Visa $1700 limit, 63% ultilization (will be 4yrs old on May 1 2018, never late)

+ Credit One Bank Mastercard $800 limit, 61% ultilization (will be 2yrs old on May 1 2018, never late)

Total credit currently available: $2,036 (46.42% total utilization)

2 installment accounts:

 + 1 Chase auto lease account for my vehicle (only $1,051 left on it and never late)

 + 1 santander joint auto loan account (2yrs 3 mo old, was 60 days late in Jan 2018, $12,345 left on it)

3 hard inquiries in the last 2 years, one falling off May 8, 2018

Income: ~$45K/yr give or take 3-4 or $87K/yr if I include my partners income

What do you think my chances are of getting approved for the CSP in about a month from now, once the two collection accounts are gone and I pay down the two credit one accounts to around 45% each? Also, should I ask for a CLI on my freedom unlimited before trying to get the CSP or after?

Thank you!!

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[Anonymous]

Considering your very low total revolving credit line. I would suggest appling with Amex, they have the fastest way to $5K CL that I know of.

By giving a possible 3X CLI in 61 days, and again in 181 days. So even if they start you out low at $1K, 61 days later could see a CL of $3K. Then possibly $6K in another 181 days. Work that card well, and it could lead to a CSP by years end. You're definitely under the 5/24, so that's good. But your score seems low as well. So if Amex goes well and no bad things happen, your score could increase by the time you app with Chase. That said, even with all that who's to say. You might need to work on your profile a littel more to get the CSP. IDK