@Anonymous wrote:Got the Chase F and the Chase FU cards to round out my Chase SR
Awesome! Congrats on the Trifecta!
It's a great combo!
Well-played!
Congrats on the tri-fecta!
I can't see myself ever getting the Freedom except for util padding, but the CFU is next on my list.
I can't see myself ever getting the Freedom except for util padding, but the CFU is next on my list.
@Anonymous wrote:Got the Chase F and the Chase FU cards to round out my Chase SR
6.8 K for the F and FU cards
23.3K for the CSR
And no more concerns about the 5/24 rule!
Congratulations.
You may have no more concerns about the 5/24 rule, but remember this other rule:
if you get a credit card from Chase, and then get a bunch of other cards from other lenders afterwards, Chase might shut down all your cards
@SouthJamaica wrote:You may have no more concerns about the 5/24 rule,
but remember this other rule:
if you get a credit card from Chase, and then get a bunch
of other cards from other lenders afterwards,
Chase might shut down all your cards
True that Chase is more conservative and I've heard that they are more known for AA than some lenders.
But excessive credit-seeking behavior and app sprees can have a risk with any lender.
I see this advice repeated often on My Fico but it always seems a generalized threat.
That's a fair warning to OP but let's put that risk into more clear context.
Whether a lender decides to pursue adverse action or not against a cardholder is much more complicated than whether they app'd for new cards after being approved. Exactly where they draw the line depends. Here are some other considerations:
* If a consumer has a thicker file, he can get away with more credit-seeking. With thinner files, be more cautious. (Thicker files have more demonstrated behavioral history behind them.)
* If a consumer has other bank accounts and/or credit accounts with a lender that are in good standing, he is less likely to face adverse action than a consumer who only has one new credit account and no other history with that lender. If this is a new relationship, be more cautious. (Once again, more behavioral history.)
* If a consumer has good payment history on his card and always pays-in-full with the bank in question, he are less likely to face shutdown. If there are missed payments or balances have increased as only the minimum payments are made, be more careful. The lender may think you are being irresponsible or getting in over your head.
* If a consumer has low utilization on (ALL) his cards (not just the one with the bank in question), he can get away with more credit-seeking behavior. It's when it appears overall UTI is getting out-of-control that banks become more alarmed. If your UTI is high, be careful.
* If a consumer was marginally approved for a card with lower scores, higher Debt-to-income, or other factors, he is at higher risk of AA for excessive credit-seeking than someone who was approved with safer margins of underwriting criteria. Consequently, if you were approved with lower limits and/or higher APR for the advertised range for that card, be more careful.
* If you show SUB-chasing behavior compulsively applying for new cards, spending to meet the SUB, and then closing or SDing them, you are probably at higher risk of AA than someone who exhibits more mainstream credit-seeking behavior. Banks know what we're doing when we chase SUBs and it's pretty obvious when someone sees your credit file. They don't like it. Don't piss them off. (Getting SUBs is fine. Just be reasonable and don't get greedy or frenetic about chasing them.)
* Every lender has their cut-off on where you get into their yellow or red zones for "excessive credit-seeking." But that point is typically different (more conservatively) for getting approved for a new card than for what it takes to generate adverse action. For example, Bank A might approve you for a new card as long as you don't exceed 4 new cards in the past 12 months, but they might not cut credit lines or close accounts until you exceed perhaps 6 new cards in 12 months. In other words, if your past behavior was satisfactory to them, you can probably continue doing something similar without risk of AA. As pointed out above, that point will be different for different consumers and situations.
* If someone were to encounter AA, unless the circumstances are extreme, it might start out with simply reducing a credit line first, or closing one of several accounts if there are more than one. Both of that reduces the risk to the lender somewhat. Lenders generally don't look forward to closing down accounts and losing customers if they can avoid it. So it would only be in the more extreme cases where they would shutdown all the accounts.
* Adverse Action can be generated by many other things on a credit file besides new card approvals. In particular, any collections, liens, bankruptcies, or even a history of late payments on other accounts can cause lenders to review and take action on your cards. So while limiting new applications within reason is good advice, it's not the only thing that needs to be done to avoid AA.
* If you did get a card for a SUB and don't plan to keep it open (or care if it's closed), you may not care if it's shutdown. So then the threat of AA is somewhat moot ... unless you never plan to reapply to that bank for another card. They will know your history and many keep records separately from your credit file, so even if a shutdown happened more than 10 years ago, they may still have a record of it.
* A generally-accepted rule of thumb is that applying for one new credit card no sooner than every 3-6 months is a safe pace that most lenders will not find excessive. So be thoughtful and selective about new applications, and watch the calendar. Avoid app-sprees. Credit is a marathon, not a sprint.
@Citylights18 wrote:I'm amazed at the number of people on here who are 19, 20, 21 reading these forums and already understand 5/24.
I didn't have my first cc until I was 31 and that was just a Macy's store card.
I would be wary of chasing every big point offer to end up paying 1,000 to 2,000 in annual fees for cards you don't use.
If you can get quality entry level cards without annual fees that is the way to go.
There is nothing wrong with being in both (UR & MR) since you can transfer the points into your airline account from 2 sources.
Welcome to My Fico Forums! 
I agree that it's surprising to see people so young already so heavily into cards. It concerns me for most of them. When I graduated college in the 80's, 'student' cards were not even available yet and it was much more difficult to get a major credit card, even after you had a college degree and a good regular income. I had to start with gas station and retail cards to build history, but I don't see many doing that today. Of course, back then, there weren't the huge SUBs or rewards available either so having one or two cards was more than enough for almost everybody.
I do wonder sometimes when I see profiles and siggy's on My Fico how much our younger members are trying to emulate older members who carry AF cards but are a better match for them with income and spending and lifestyle. Premium AF cards are not for everybody. (I only added a CSR to my wallet last year after very careful consideration and I still cannot justify an AMEX Platinum even though I make well into six figures and could easily qualify for it. It just doesn't make sense for my spending.) So yes, entry-level cards are the way for most people to get started.
Being in two or more "eco-systems" (whether MR or UR or TY or others) can be a murky position. It's certainly not for everybody. It depends on your lifestyle and spend, and it very much depends on your travel partners because points cannot always be combined and travel parters can and do change over time. (Some people forget that not everyone myself included even HAS "preferred travel partners" due to lack of or manner of business travel.) Spreading out points can dilute value for redemption if your spend level is not high enough to sustain it. For all but the heaviest travelers, I still think concentrating points in only one or maybe two systems is probably more than enough.