Question about AAOA and Chase

[Anonymous]

I started my credit rebuild last year and my Capital One Secured card will become a year on September 2020. I have also got rid of all my derogatory marks on my credit report and am waiting for the PIF LVNV to get removed shortly. All of my scores were in the 630-660 range but once I paid the LVNV debt, everything except for my FICO 8 (FICO 2,4,5 mortgage/bankcard/auto) shot up to mid 700's about a day later. I'm sure it wasn't deleted off my report yet. 

The question I have is, I had a car lease in 2008 - 2010 that was paid on time everytime. Does this go into account for my AAOA or is it just credit cards?  Do I have to wait until the secured card becomes a year old?

I am planning on applying for the CSP and Chase Business Ink (in that order) but I don't want to get denied.  I am at 3/24 and am saving these 2 spots for these 2 cards.

I have a Capital One Secured 9/2019- $500 

Capital One QS1 3/2020- $500

Capital one Spark Business 5/2020 - $500

Utilization when applying will be 1%-5% 

Experian Hard Inquiries : 9 (This year - SBA Loan, 2 capone, Stupid BMW Finance Credit check which was denied early in the year before I found this forum)

Income: $96000 

Personal Checking and Savings Accounts with Chase with a few thousand in savings.

2 Business Checking Accounts with Chase opened in 4/2020 with about 25k in the accounts.

Does anyone have any advice on how to proceed? 

[Remedios]

All accounts are included in AAOA calculation, but Chase is going to primarily look at the length of revolving history. 

Based on your approval for their business card, I'd say you need to wait as long as possible if you're hoping for non toy limit. 

As far as having banking "relationship",  I got a denial long time ago for short history, while CPC, with two paid off mortgages with them, and a few paid off auto loans. 

They came around later, and at the time, gave me my highest SLs.

When it comes to Chase, you have to either be patient, or build your credit now, worry about Chase later. 

[Anonymous]

Thanks for your input. My business is going to have large spends in the next couple months with the bills being paid in full every month (around 50k) in the next 6 months. I am just trying to find the right cards to maximize value in points. I don't know how good BB&T pre qualify is but I got pre approved on their portal for 3 of their cards for personal cards that have nothign to do with the business side. 17.24% for the rewards and 15.24% for the bright. I'm not sure what limits I'm looking at but do you think this is worth taking a shot on? I wanna do this correctly. I was trying to save the next 2 spots for 2 chase cards but I guess I should really garden other cards first? I would have to wait another year to open a chase card then.

[Remedios]

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@Anonymous wrote:

Thanks for your input. My business is going to have large spends in the next couple months with the bills being paid in full every month (around 50k) in the next 6 months. I am just trying to find the right cards to maximize value in points. I don't know how good BB&T pre qualify is but I got pre approved on their portal for 3 of their cards for personal cards that have nothign to do with the business side. 17.24% for the rewards and 15.24% for the bright. I'm not sure what limits I'm looking at but do you think this is worth taking a shot on? I wanna do this correctly. I was trying to save the next 2 spots for 2 chase cards but I guess I should really garden other cards first? I would have to wait another year to open a chase card then.

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I dont think your Chase limits are going to be sufficient for your needs, at least not now. 

I dont think you should base your strategy around Chase for one simple reason, they arent very friendly to young and thin files. If it was just one, maybe, but both are a receipe for Chase going "Get more experience".

If you need cards for business,  focus on lenders that dont report to your personal CR. That way, Chase cannot count them later.

I'd get another card when your oldest card reaches a year, then wait 6 months, and go for the Chase card. 

That way,  you'll be under 5/24 in mere six months, and able to apply for additional Chase cards, with longer history and thicker file. 

[Anonymous]

@Remedios , thank you. Due to your advice I will hold off on Chase. 

I am finding so much value in this forum due to people like you.

[Anonymous]

@Anonymous

Chase does like some long revolving history so I would agree with waiting. The other issue is if you are going for the CSP they do like to see an equivalent high credit amount especially on thin files since the CSP has a minimum sl of $5k. There have been success stories on people getting approved for the card with only low limit cards and good scores. However, the majority find chase to be a lender that does not want to be the first to give you a high limit card especially 10x your current high limit. 

I would wait a little bit maybe try for some cap one increases and then see what happens if you get these up a bit. Though Capone isn't known to give big increases to bucketed cards. 

another option straying away from your initial post a little bit is applying for a card like discover that is known to grow pretty quickly, get it up higher and then app the csp 6 months after that then waiting for the ink card until your cards age a bit more. If this is not for you then maybe wait 5-6 months and app for the CSP and if they say no try to recon and explain your situation I have found chase to be pretty recon friendly. Maybe just something like I have really cleaned up my credit since I got these cards initially and my score has increased significantly leading me to my dream card... something like that. However, hopefully in 5/6 months you can just get an instant approval! 

I have heard bb&t does offer pretty solid pre quals and some solid card offerings so that is definitely something to look into in lieu of my discover advice above. I agree with the above post as well on holding off a bit and letting things age, possibly getting a hidden TL card and go from there. 

also, this is a big stab in the dark but depending on what industry you are in John Deere offers a card for their respective industries that is a hidden tl and definitely gives out some massive limits. Some cards that are hit or miss on limits that may also be hidden tradelines are Wells business cards and citi though I'm not sure, I am 95% certain that the business Costco card or Sams card does not report which could be a good option if that is what your spend is in. Just some guesses and maybe someone else can chime in on some good hidden tradelines here. 

[Anonymous]

@Anonymous  Thanks for your input. I got prequalified for a 17% apr BB&T and they're known to do much bigger limits. I think I may get this card when the prequalify page responds again. I let the first one time out because I wasn't so sure but now I am.

Thanks

[Anonymous]

@Anonymous @Sorry I just edited my post when I saw the bb&t information. I have heard they give good limits and if you see an apr on your orequalification I would say that is pretty solid in terms of your odds of approval. I missed that when I posted about discover, sorry about that!