When to Come Out of the Garden

Marmot · ‎02-07-2022

In early August 2021, I did an app spree and was aprroved for three CCs with $20,000 each. I planned to stay in the garden for 12 months until my next app spree.

I'm about start a new job in March with about the same income. The conumdrum is should I apply for two to three CCs after 7 months in the garden? I understand that different issuers have different take on AoYA, AAoA, HP count, etc. Or should I wait 12 months in the garden to let my AAoA mature and let the HPs fall off to increase my chances for approval even with a new job? What do you think?

The two to three CCs are the remaining ones I'd like to have and these will complete my CC need/want. One CC is AOD, which I understand is not easy to get approved recently. I've been reading that AOD is sensitive to DTI, AoYA, and HPs.

DPs

-FICO 8 EX/EQ/TU all hovering around 810

-HP: EX 1/12, 6/24; EQ 2/12, 5/24; TU 1/12, 3/24

-AoOA 31 years, AAoA 3 yrs 10 m

-AEZO, PIF, UTIL 0%, DTI 29%

-10 CCs from major banks to well known CUs; TCL $140,000

-Been building relationships with the CUs with savings, checking, DDs, Money Market account.

SouthernCredit · ‎02-07-2022

What are the other two cards you want o apply for besides AOD?

My Credit Journey

Marmot · ‎02-07-2022

Navy Fed Flagship (1st card from NFCU) and Northrup Grumman FCU. I've been building banking relationships with both CUs and AOD. Navy Fed to raise my internal score. A couple of NGFCU cust. reps mentioned that they've seen underwriters overturn a denial if the applicant has a decent banking relationship with the CU. No guarantee, of course.

The questions is 7 months of gardening good enough for these three CUs. The job change derailed my 12 month gardening plan. Not sure if the job change makes a difference from an underwriting perspective.

Your insight about my conumdrum will be helpful to make the decision. Thank you !!!

FinStar · ‎02-07-2022

IMO, 7 months might be too soon based on your last credit activities and none of the cards you have aspirational goals to obtain are going anywhere.

Conventional wisdom would hinge on the longer, the better. When you optimize things, especially on a longer time scale, tends to yield better results in a variety of cases. But, this is your profile + your goals and it's your decision. Otherwise, it sounds like you're attempting to rationalize 7 months as a timeframe to scratch the itch 😂

Marmot · ‎02-07-2022

@FinStar You are spot on. The three new cards are a "want" and not a "need." As mentioned, the original plan was to stay in the garden at least for 12 months since my last app spree. The prospect of the job change clouded my decision making. I'll in in the garden as planned.

Of the many factors that the underwiters or algorithm take into account to make a decision, do you think that the short emploment history would be a small or noteworthy factor? 12 months in the garden equates to 6 months on the new job. Thank you !

FinStar · ‎02-07-2022

@Marmot wrote:
@FinStar You are spot on. The three new cards are a "want" and not a "need." As mentioned, the original plan was to stay in the garden at least for 12 months since my last app spree. The prospect of the job change clouded my decision making. I'll in in the garden as planned.

Of the many factors that the underwiters or algorithm take into account to make a decision, do you think that the short emploment history would be a small or noteworthy factor? 12 months in the garden equates to 6 months on the new job. Thank you !

NFCU may not be much of an issue, but then again since you're going for the Flagship CC, it could, but we don't know. The ones that could likely scrutinize or may give pause to a short employment history [upon manual review] may be AOD and NGFCU. It just depends what other internal factors they'll be considering besides DTI, recent new accounts/inquiries, profile depth, etc.

800wannabe420 · ‎02-07-2022

@Marmot

I cannot think of any circumstance where extending a stay in the garden would not be beneficial to a future request for credit. The longer the better 🙌.

NFCU is a very relationship oriented lender. Increasing the length of time of your membership is a positive, but depositary accounts are separate from their lending department and have not in the past been a tremendous influence in their granting of credit. Debt to income (DTI) and utilization appear to more important.

I carry both the Navy Flagship and More Rewards cards and while an approval for the Flagship as a first card from NFCU is not impossible by any means, it does not happen frequently regardless of how strong the credit profile.

If you want to optimize your chances of a successful application, I suggest you open a secured savings loan (SSL) in whatever amount you can currently afford for a period of at least 12 months (no HP involved).

As soon as the loan appears on your account, repay 92% of the loan amount and setup an automatic payment for the remaining balance over the length of the SSL.

This will establish a credit history with NFCU while you are gardening and should improve your odds of a successful request.

FinStar · ‎02-07-2022

@800wannabe420 wrote:
@Marmot

I cannot think of any circumstance where extending a stay in the garden would not be beneficial to a future request for credit. The longer the better 🙌.

NFCU is a very relationship oriented lender. Increasing the length of time of your membership is a positive, but depositary accounts are separate from their lending department and have not in the past been a tremendous influence in their granting of credit. Debt to income (DTI) and utilization appear to more important.

I carry both the Navy Flagship and More Rewards cards and while an approval for the Flagship as a first card from NFCU is not impossible by any means, it does not happen frequently regardless of how strong the credit profile.

If you want to optimize your chances of a successful application, I suggest you open a secured savings loan (SSL) in whatever amount you can currently afford for a period of at least 12 months (no HP involved).

As soon as the loan appears on your account, repay 92% of the loan amount and setup an automatic payment for the remaining balance over the length of the SSL.

This will establish a credit history with NFCU while you are gardening and should improve your odds of a successful request.

I would respectfully disagree on the last suggestion. If the OP has an established membership with NFCU, there is no need for the SSL. This isn't about missing a component or mixed element in the overall credit profile to optimize scores, opening up a SSL will lower AAoA. The component here is time relative to the OPs goal in applying for the 3 intended CCs. If anything, the OP could lengthen his gardening timeframe, but a SSL is not required.

Marmot · ‎02-08-2022

I am thankful for all the thoughts mentioned by each contributor. All of them were helpful looking at different aspects. Nobody knows what the future holds, but I'll wait for the 12 months mark in the garden. It's only 6 more months. AAoA will go up and a few HP past 12 months will be gone. As everyone agrees, longer in the garden is the better choice. The DTI cannot be lowered due to the mortgage and that is one impotant factor that may have a negative effect even with the 12 months gardening.

Thank you to all of you for sharing your thoughts !!!

bigseegar · ‎02-10-2022

You really need to stick to your original plan of a year in the garden as 6 months ( I know you said 7 but going in the garden in August and it's just now the first of Feb is only 6 months) is really nothing and those cards you got on the App Spree are also only 6 months old which will probably hurt some as they will still be considered "new accounts" by most lenders. I know you said you have a job change and "want" these two cards. But there's a big difference in want and need.