Advice for a newbie

Anonymous · ‎01-25-2015

Hi everybody,

I've been lurking around the forums for a while and decided it was time to ask for some advice!

My background:

College student

Total credit history- 6mo

AAoA- 5mo

Discover it chrome: 2% gas/restaurants July '14 CL$650 (started 500, autoCLI to 650 after 4mos)

Chase freedom: 5% revolving Oct '14 CL$500

12K annual income

All clean report.

FICOs

EQ 684 no inqs

TU 656 w/ 1 inq

EX 691 w/ 1 inq

I always PIF but I just zeroed out my chase balance early (I believe they will report that now, correct?) & discover posts on Feb4th and I'm gonna leave it at ~1% util. MyFICO estimates scores to all go 720+ with this (previous reported util at ~50%).

I have two short term goals. 1) Get in with AMEX. 2) Add another good rewards card. --> the two need not neccesarily go hand in hand.

So... what I am thinking is to apply for the AMEX ED as soon as I have a reasonable chance of acceptance. I'm leaning towards the ED versus the BCE because having only cashback cards right now I feel pretty good about the immediate rewards I'm getting, thus the AMEX would mainly be for reaping the AMZN Prime & 10Kpts bonuses and then I would probably not use it too much until the future when I hope to travel more. That said, I want to get it sooner rather than later for backdating purposes.

Then if it seems reasonable I'm looking for another cashback rewards card to round out my arsenal. Based on what I already have, I'm trying to choose between these cards:

Sallie Mae for the Amazon & gas (I hardly spend anything on groceries)

Citi Double Cash

BoA Better Balance (**seems like easy money & I am a low spender... so perhaps the best option??)

Could PC my discover to the standard version w/ the revolving 5% cats... but I like the 2% on restauarnts b/c this is my largest spend area outside of Amazon stuff.

Lastly... thoughts on asking for CLIs on my current cards? I tried the online CLI for discover but they wanted a HP so I cancelled the request for now.

Sorry for the long post. Thanks in advance for your feedback!

kdong1996 · ‎01-25-2015

I know this might go against what other people might recommend, but I'd just apply for the Amex ED right after your Discover reports the lower balance. Amex seems to like young and clean files. Even if you get denied you'd still have 11 months to apply for it to get a 2015 MSD. You don't have many inquiries and only a handful of Banks pull EX (Chase, Amex, Capital One and sometimes Citi). Your TU is a bit low compared to your other scores so I'd wait a while for the Sallie Mae since Barclays pulls TU. As for Citi, they pulled EX and EQ for me, but they might not like your thin file. No experience with BoA so I can't comment on that....

As for CLI, for Discover some people had luck with trying the automated phone CLI and then hanging up when it denies you and transfers to a specialist. As for Chase I wouldn't do it. Unless you get a targeted offer it's always a HP and they usually don't give big increases. However they tend to give higher limits on new cards once you get in with them.

CarbonCard · ‎01-25-2015

@Anonymous wrote:
Hi everybody,

I've been lurking around the forums for a while and decided it was time to ask for some advice!

My background:
College student
Total credit history- 6mo
AAoA- 5mo
Discover it chrome: 2% gas/restaurants July '14 CL$650 (started 500, autoCLI to 650 after 4mos)
Chase freedom: 5% revolving Oct '14 CL$500
12K annual income

All clean report.
FICOs
EQ 684 no inqs
TU 656 w/ 1 inq
EX 691 w/ 1 inq
I always PIF but I just zeroed out my chase balance early (I believe they will report that now, correct?) & discover posts on Feb4th and I'm gonna leave it at ~1% util. MyFICO estimates scores to all go 720+ with this (previous reported util at ~50%).

I have two short term goals. 1) Get in with AMEX. 2) Add another good rewards card. --> the two need not neccesarily go hand in hand.

So... what I am thinking is to apply for the AMEX ED as soon as I have a reasonable chance of acceptance. I'm leaning towards the ED versus the BCE because having only cashback cards right now I feel pretty good about the immediate rewards I'm getting, thus the AMEX would mainly be for reaping the AMZN Prime & 10Kpts bonuses and then I would probably not use it too much until the future when I hope to travel more. That said, I want to get it sooner rather than later for backdating purposes.

Then if it seems reasonable I'm looking for another cashback rewards card to round out my arsenal. Based on what I already have, I'm trying to choose between these cards:
Sallie Mae for the Amazon & gas (I hardly spend anything on groceries)
Citi Double Cash
BoA Better Balance (**seems like easy money & I am a low spender... so perhaps the best option??)

Could PC my discover to the standard version w/ the revolving 5% cats... but I like the 2% on restauarnts b/c this is my largest spend area outside of Amazon stuff.

Lastly... thoughts on asking for CLIs on my current cards? I tried the online CLI for discover but they wanted a HP so I cancelled the request for now.

Sorry for the long post. Thanks in advance for your feedback!

I applied for the BoA Better Balance twice, and I got denied. But then really, YMMV.

As for Amex, I agree with kdong. SM card is pretty good, just PIF cos they tend to give a high APR

I can't speak for City double cash for I still haven't used it

Starting Score: (1/15)TU: 690 EX: 690 EQ: 711
Current Score: (10/18) TU-8: 813 EX-8: 808 EQ: 797
Goal Score: (7/20) 800+ for all three bureaus
Take the myFICO Fitness Challenge

Anonymous · ‎01-25-2015

I would apply for a BoA student card, especially if you bank with them. They gave me a card with an empty file (no credit). Either BBR or Travel rewards are good.

Chris679 · ‎01-25-2015

@kdong1996 wrote:
I know this might go against what other people might recommend, but I'd just apply for the Amex ED right after your Discover reports the lower balance. Amex seems to like young and clean files. Even if you get denied you'd still have 11 months to apply for it to get a 2015 MSD. You don't have many inquiries and only a handful of Banks pull EX (Chase, Amex, Capital One and sometimes Citi). Your TU is a bit low compared to your other scores so I'd wait a while for the Sallie Mae since Barclays pulls TU. As for Citi, they pulled EX and EQ for me, but they might not like your thin file. No experience with BoA so I can't comment on that....

As for CLI, for Discover some people had luck with trying the automated phone CLI and then hanging up when it denies you and transfers to a specialist. As for Chase I wouldn't do it. Unless you get a targeted offer it's always a HP and they usually don't give big increases. However they tend to give higher limits on new cards once you get in with them.

I agree with everything in this post. 691 and only 1 inq I would give it a shot. if they give you the 7-10 message that does not mean you are denied just call in and think you'll be ok. Double Cash is my favorite card but you don't want to go too crazy too soon.

heyarrnold · ‎01-25-2015

Also, just to cover all bases, make sure to stay on top of their pre qualified offers! As far as approval odds go, I got my Amex approved when my scores were in the 670-680's range.

vygotsky · ‎01-25-2015

@Anonymous wrote:
Hi everybody,

My background:
College student
Total credit history- 6mo
AAoA- 5mo
Discover it chrome: 2% gas/restaurants July '14 CL$650 (started 500, autoCLI to 650 after 4mos)
Chase freedom: 5% revolving Oct '14 CL$500
12K annual income

BoA Better Balance (**seems like easy money & I am a low spender... so perhaps the best option??)

Could PC my discover to the standard version w/ the revolving 5% cats... but I like the 2% on restauarnts b/c this is my largest spend area outside of Amazon stuff.

Lastly... thoughts on asking for CLIs on my current cards? I tried the online CLI for discover but they wanted a HP so I cancelled the request for now.

Sorry for the long post. Thanks in advance for your feedback!

Hey I am a college student and have a profile similar to yours. IMO, your scores are good, INQs are good but your AAoA is low, I would let the Freedom age atleast 6 months before applying for an Amex, (AAoA of 1 years would be a plus). This will improve your changes of getting approved and your inital CL will be higher! Had a discover student card for 6 months, 1st card (500$ CL) then apped for Amex BCE 61 days 3x CLI to ~15k.

I have only tried the BBR and recommend it if you have a checking or savings account with BoA, easy 120$/year

Those CLI are not worth the HP and drop in your score till AFTER you get your Amex! Good Luck!

FICO 733 (Discover)

takeshi74 · ‎01-26-2015

@Anonymous wrote:
So... what I am thinking is to apply for the AMEX ED as soon as I have a reasonable chance of acceptance. I'm leaning towards the ED versus the BCE because having only cashback cards right now I feel pretty good about the immediate rewards I'm getting

Don't rely on feel. Run the numbers for your specific situation to aid you in your decision making.

@Anonymous wrote:
Then if it seems reasonable I'm looking for another cashback rewards card to round out my arsenal. Based on what I already have, I'm trying to choose between these cards:
Sallie Mae for the Amazon & gas (I hardly spend anything on groceries)
Citi Double Cash
BoA Better Balance (**seems like easy money & I am a low spender... so perhaps the best option??)

Again, you have to run the numbers and compare. List out your major spend categories and how much you run through them.

@Anonymous wrote:
Lastly... thoughts on asking for CLIs on my current cards? I tried the online CLI for discover but they wanted a HP so I cancelled the request for now.

Chase would be a hard pull as well.