Should I get a new credit card, and how might it hurt or help my credit score?

[JNesbit89]

Hello! It's been about 12 months since I last got a credit card (it was the Citi Double Cash card)

Here's a quick rundown on my cards, credit, etc.:

• Citizens Bank Credit Card: $3600 limit, opened March 15, 2015 (6 years, 9 months)

• PayPal Credit (non-credit card): $10,000 limit, opened May 6, 2015 (6 years, 7 months)

• Best Buy Credit Card (non-Visa, store only): $6,000 limit, opened July 7, 2015 (6 years, 5 months)

• Citi Double Cash Card: $4,700 limit, opened December 25, 2020 (11 months)

My total credit limit: $24,300

My total income (pre-tax): $35,414 (not including overtime, bonuses, or holiday pay)

My total monthly utilization: About 0-2% utilization (I pay things off immediately)

My debt-to-income ratio: 9% (I'm unsure how this number is made lol)

My total debt: $2,781, which is the lease on my car (which is ending this summer)

My credit card status: I have an average monthly balance of $300, keeping it below 3% but above 0%

My average age of my credit accounts: 6.5 years

My Experian FICO Score: 749 as of December 23, 2021 (been this number since August 4, 2021)

My Equifax FICO Score: 759 as of November 23, 2021

My average monthly spendings and categories:

• Gas: $80

• Groceries: $300

• Phone Bill: $35

• Dining: $40

• Car Lease: $255

• Car Insurance: $90

• YouTube Premium: $12

• AppleCare: $10

• iCloud Storage: $1

• Other: $100

My total savings (in my checking and savings account): $39,705

My total net worth when you factor the products I'm selling: $44,205

My fidelity savings account: $3,200

Open to business cards: No

My hard inquiries:

• Mortgage applicate with Citi Bank: June 22, 2020 (will fall off this summer)

• Mortgage application with Bank of America: June 21, 2020 (will fall off this summer)

• Mortgage application with Priority Mortgage: June 19, 2020 (will fall off this summer)

• Mortgage application with Equifax Mortgage Solutions: May 20, 2020 (will fall of this summer)

• Citi Double Card credit card application: December 25, 2020.

• And finally, I accidentally ran my credit opening a Wings Financial savings account ugh, and that hit was 2-4 months ago)

Purpose of getting a new card:

1. Initially was looking at the AMEX Blue Cash Preferred card, but I will be held down by that annual fee and I don't spend over $350 on groceries per month. Someone pointed out the Citi Custom Cash card, which seems like a great way to get 5% on groceries, and even sneak in gift cards with the food purchases to max out the $500 limit per month.

2. I'd like to have a higher total credit limit, which makes it easier to keep the utilization down.

3. I'd like an addition account that will grow over time. This will lower my average credit age but will bounce back quickly (I think).

4. I made the decision that I will NOT be house hunting anytime soon, at least not for 6-12 months, so it's better to get a credit card now.

5. I just like having different accounts, juggling the payments, watching scores go up (almost like stats in an RPG lol). I also love credit scores and I imagine after the initial small hit my credit score will either go up or remain stable at 750.

I do not like category spending, which is why I am leaning towards cards that give cash back or great bonuses. I'm also trying to avoid any cards with annual fees!

Other random things:

• I live with my folks, and they no longer accept rent from me (which I appreciate). I moved back in right before the pandemic in order to save $40,000. At the time I was looking for a house to buy and planned to put down 20%. My max house price would've been $140,000.

• I am likely going back to a community college part time in the spring (haven't been to college since 2015). I have no idea if I qualify for any tuition assistance, but I can pay out of pocket if I must.

• I've had a job with Best Buy for almost 7 years but am thinking of changing jobs since I've hit the pay cap here and there is little room for growth.

• I might opt into searching for an apartment in the springtime, assuming I get a better paying job (and hopefully make a career out of it).

• I plan on building a new PC in the coming days/weeks. I am a gamer and have not built/updated my gaming PC since 2015 and 2017. The budget is $4,000 which is high, but I sell many things on Ebay to counter the costs.

And that's my situation. I dislike hard inquiries and I assume applying for most cards will be a hard hit to my credit, albeit a small hit.

What should I do?

To anyone who read the entire story - THANKS!!!

[Irv02]

Happy Holidays!!  Your background seems fine for another card.  Do you really need more credit at this time?  You should only apply for more credit if you need it.  

[JNesbit89]

Happy Holidays to you too! And I definitely don't -need- more credit. But I figured it's been a year and it would be a way to make more money in rewards and have a higher limit.

[Anonymalous]

---

@JNesbit89 wrote:

My total credit limit: $24,300

My total income (pre-tax): $35,414 (not including overtime, bonuses, or holiday pay)

My total monthly utilization: About 0-2% utilization (I pay things off immediately)

My debt-to-income ratio: 9% (I'm unsure how this number is made lol)

My total debt: $2,781, which is the lease on my car (which is ending this summer)

My credit card status: I have an average monthly balance of $300, keeping it below 3% but above 0%

---

That 9% is probably just your car payment $255 / ($35414 / 12 months) income = 8.6%. DTI = debt/income, or in your case (minimum payment on your credit cards + monthly rent/mortgage + monthly car payments) / monthly income. If you have a student or other type of loan, child support, etc. then throw that in the mix as well. Don't count utilities. You can include all your other sources of household income to increase the denominator, but you may need to provide proof.

Typically, a DTI of 36% or above makes lenders wary. Some lenders are more sensitive than others. Since you're not paying rent or mortgage, you're temporarily is very good shape.

[SouthJamaica]

---

@JNesbit89 wrote:

Hello! It's been about 12 months since I last got a credit card (it was the Citi Double Cash card)

Here's a quick rundown on my cards, credit, etc.:

• Citizens Bank Credit Card: $3600 limit, opened March 15, 2015 (6 years, 9 months)

• PayPal Credit (non-credit card): $10,000 limit, opened May 6, 2015 (6 years, 7 months)

• Best Buy Credit Card (non-Visa, store only): $6,000 limit, opened July 7, 2015 (6 years, 5 months)

• Citi Double Cash Card: $4,700 limit, opened December 25, 2020 (11 months)

My total credit limit: $24,300

My total income (pre-tax): $35,414 (not including overtime, bonuses, or holiday pay)

My total monthly utilization: About 0-2% utilization (I pay things off immediately)

My debt-to-income ratio: 9% (I'm unsure how this number is made lol)

My total debt: $2,781, which is the lease on my car (which is ending this summer)

My credit card status: I have an average monthly balance of $300, keeping it below 3% but above 0%

My average age of my credit accounts: 6.5 years

My Experian FICO Score: 749 as of December 23, 2021 (been this number since August 4, 2021)

My Equifax FICO Score: 759 as of November 23, 2021

My average monthly spendings and categories:

• Gas: $80

• Groceries: $300

• Phone Bill: $35

• Dining: $40

• Car Lease: $255

• Car Insurance: $90

• YouTube Premium: $12

• AppleCare: $10

• iCloud Storage: $1

• Other: $100

My total savings (in my checking and savings account): $39,705

My total net worth when you factor the products I'm selling: $44,205

My fidelity savings account: $3,200

Open to business cards: No

My hard inquiries:

• Mortgage applicate with Citi Bank: June 22, 2020 (will fall off this summer)

• Mortgage application with Bank of America: June 21, 2020 (will fall off this summer)

• Mortgage application with Priority Mortgage: June 19, 2020 (will fall off this summer)

• Mortgage application with Equifax Mortgage Solutions: May 20, 2020 (will fall of this summer)

• Citi Double Card credit card application: December 25, 2020.

• And finally, I accidentally ran my credit opening a Wings Financial savings account ugh, and that hit was 2-4 months ago)

Purpose of getting a new card:

1. Initially was looking at the AMEX Blue Cash Preferred card, but I will be held down by that annual fee and I don't spend over $350 on groceries per month. Someone pointed out the Citi Custom Cash card, which seems like a great way to get 5% on groceries, and even sneak in gift cards with the food purchases to max out the $500 limit per month.

2. I'd like to have a higher total credit limit, which makes it easier to keep the utilization down.

3. I'd like an addition account that will grow over time. This will lower my average credit age but will bounce back quickly (I think).

4. I made the decision that I will NOT be house hunting anytime soon, at least not for 6-12 months, so it's better to get a credit card now.

5. I just like having different accounts, juggling the payments, watching scores go up (almost like stats in an RPG lol). I also love credit scores and I imagine after the initial small hit my credit score will either go up or remain stable at 750.

I do not like category spending, which is why I am leaning towards cards that give cash back or great bonuses. I'm also trying to avoid any cards with annual fees!

Other random things:

• I live with my folks, and they no longer accept rent from me (which I appreciate). I moved back in right before the pandemic in order to save $40,000. At the time I was looking for a house to buy and planned to put down 20%. My max house price would've been $140,000.

• I am likely going back to a community college part time in the spring (haven't been to college since 2015). I have no idea if I qualify for any tuition assistance, but I can pay out of pocket if I must.

• I've had a job with Best Buy for almost 7 years but am thinking of changing jobs since I've hit the pay cap here and there is little room for growth.

• I might opt into searching for an apartment in the springtime, assuming I get a better paying job (and hopefully make a career out of it).

• I plan on building a new PC in the coming days/weeks. I am a gamer and have not built/updated my gaming PC since 2015 and 2017. The budget is $4,000 which is high, but I sell many things on Ebay to counter the costs.

And that's my situation. I dislike hard inquiries and I assume applying for most cards will be a hard hit to my credit, albeit a small hit.

What should I do?

To anyone who read the entire story - THANKS!!!

---

1.  Since you enjoy watching your scores go up, I should point out to you that if you let your age of newest account hit 12 months -- which is just around the corner for you --  you will probably get a nice score bonus in your FICO 8's and 9's as you move to a higher scorecard.  And as soon as you add an account you will lose those points.

2.  My impression is that you're pretty well covered in the cash back department.  But if you want to add another, and enjoy the process of monitoring your accounts, etc., then why not? 

[Anonymalous]

Your Citi Double Cash is a great anything else card. Generally your next card should target your highest spend categories, which for you are groceries followed distantly by gas, and get either 3% in several, or 5% in one. The Amex BCP is a good card, but as you note, it's better for people who spend more than you do on groceries, like families. Though Amex is known for tripling your SL, at the first CLI.

The Custom Cash is an excellent solution, and it can be repurposed if you get other cards. If you do go for the Custom Cash, try Credit Karma, which has been matching people with a $300 SUB.

Another option is the Chase Freedom Flex. It has 5% rotating categories, which fits well with the DC. And if you open the offer page in a private window enough times, you should be able to find a $200 SUB + 5% on groceries for the first year. So you'll have a year of a Custom Cash equivalent, on top of the rotating categories.

If you're interested in high credit limits and have a vet in your immediate family (a dead grandparent counts), the Navy Federal More Rewards is 3% at groceries and gas (and dining, too), has a $250 sign up bonus (if you can meet the 90 day/$3000 spend), and the CU is known for generous CLs. Plenty of other credit unions are known for high CLs, as well.

[Junejer]

I'll throw in the FNBO Evergreen Card with 2% across the board, since you don't like category chasing. I, too, hate chasing categories. Also, this card has a low $1,000 spend over three months to get your $200 SUB.

[AverageJoesCredit]

---

@JNesbit89 wrote:

Hello! It's been about 12 months since I last got a credit card (it was the Citi Double Cash card)

Here's a quick rundown on my cards, credit, etc.:

• Citizens Bank Credit Card: $3600 limit, opened March 15, 2015 (6 years, 9 months)

• PayPal Credit (non-credit card): $10,000 limit, opened May 6, 2015 (6 years, 7 months)

• Best Buy Credit Card (non-Visa, store only): $6,000 limit, opened July 7, 2015 (6 years, 5 months)

• Citi Double Cash Card: $4,700 limit, opened December 25, 2020 (11 months)

My total credit limit: $24,300

My total income (pre-tax): $35,414 (not including overtime, bonuses, or holiday pay)

My total monthly utilization: About 0-2% utilization (I pay things off immediately)

My debt-to-income ratio: 9% (I'm unsure how this number is made lol)

My total debt: $2,781, which is the lease on my car (which is ending this summer)

My credit card status: I have an average monthly balance of $300, keeping it below 3% but above 0%

My average age of my credit accounts: 6.5 years

My Experian FICO Score: 749 as of December 23, 2021 (been this number since August 4, 2021)

My Equifax FICO Score: 759 as of November 23, 2021

My average monthly spendings and categories:

• Gas: $80

• Groceries: $300

• Phone Bill: $35

• Dining: $40

• Car Lease: $255

• Car Insurance: $90

• YouTube Premium: $12

• AppleCare: $10

• iCloud Storage: $1

• Other: $100

My total savings (in my checking and savings account): $39,705

My total net worth when you factor the products I'm selling: $44,205

My fidelity savings account: $3,200

Open to business cards: No

My hard inquiries:

• Mortgage applicate with Citi Bank: June 22, 2020 (will fall off this summer)

• Mortgage application with Bank of America: June 21, 2020 (will fall off this summer)

• Mortgage application with Priority Mortgage: June 19, 2020 (will fall off this summer)

• Mortgage application with Equifax Mortgage Solutions: May 20, 2020 (will fall of this summer)

• Citi Double Card credit card application: December 25, 2020.

• And finally, I accidentally ran my credit opening a Wings Financial savings account ugh, and that hit was 2-4 months ago)

Purpose of getting a new card:

1. Initially was looking at the AMEX Blue Cash Preferred card, but I will be held down by that annual fee and I don't spend over $350 on groceries per month. Someone pointed out the Citi Custom Cash card, which seems like a great way to get 5% on groceries, and even sneak in gift cards with the food purchases to max out the $500 limit per month.

2. I'd like to have a higher total credit limit, which makes it easier to keep the utilization down.

3. I'd like an addition account that will grow over time. This will lower my average credit age but will bounce back quickly (I think).

4. I made the decision that I will NOT be house hunting anytime soon, at least not for 6-12 months, so it's better to get a credit card now.

5. I just like having different accounts, juggling the payments, watching scores go up (almost like stats in an RPG lol). I also love credit scores and I imagine after the initial small hit my credit score will either go up or remain stable at 750.

I do not like category spending, which is why I am leaning towards cards that give cash back or great bonuses. I'm also trying to avoid any cards with annual fees!

Other random things:

• I live with my folks, and they no longer accept rent from me (which I appreciate). I moved back in right before the pandemic in order to save $40,000. At the time I was looking for a house to buy and planned to put down 20%. My max house price would've been $140,000.

• I am likely going back to a community college part time in the spring (haven't been to college since 2015). I have no idea if I qualify for any tuition assistance, but I can pay out of pocket if I must.

• I've had a job with Best Buy for almost 7 years but am thinking of changing jobs since I've hit the pay cap here and there is little room for growth.

• I might opt into searching for an apartment in the springtime, assuming I get a better paying job (and hopefully make a career out of it).

• I plan on building a new PC in the coming days/weeks. I am a gamer and have not built/updated my gaming PC since 2015 and 2017. The budget is $4,000 which is high, but I sell many things on Ebay to counter the costs.

And that's my situation. I dislike hard inquiries and I assume applying for most cards will be a hard hit to my credit, albeit a small hit.

What should I do?

To anyone who read the entire story - THANKS!!!

---

Great write up. Dont want to recommend any ccs if you dont need them but i will say you can accomplish quite alot on your income /score/ profile if you wanted to. If anything i think you should consider joining a Credit Union or two as it will broaden you lending  experience and can really find some nice cards with great limits attainable. 

[NoMoreE46]

With your $300/month grocery spend, I would seriously consider the Custom Cash.

If you app, try via CK to get the $300 SUB.

You could also try a two

stage PC.  You would need to first PC your Double Cash to the Rewards +.  Then, PC the Rewards + to the CC.

[CCrew]

Keep in mind in calculating all this you saod you'll be done paying the car off soon. You'll hve to expect when that closes off your record your score will drop as you'll have nothing in that category. 

The rest I think others have covered well. Good Luck!