Hi all, I'm currently new to the forum but have been resourcing the forum for the last year or so. At the moment, I am trying to figure out methods of boosting my scores and whether or not I should apply for more credit cards or pay down my 2 cards with high utilization. Here is some background info on what my profile looks like right now:
Credit cards:
Capital One QS: $500, 0% util
Capital One QS one: $500, 0% util
I have also had no luck with getting increases with these cards even when I've owned them for nearly two years. (Just upgraded the Platinum to the QS)
Military Star: $2,500, 0% util
USAA Platinum Visa: $4000, 94% util
NFCU cash rewards: $4300, 12% util (just asked for a Cli and got $400) unsure why that is.
NFCU go rewards: $9100, 94% util
NFCU more rewards Amex: $1000, 0% util (just got approved for this card yesterday)
Additional info:
1. Attempted to apply for discover, Amex, and chase cards in the last 120 days but have not gotten an approval. Also tried to apply for an Apple Card but was placed on the path to Apple Card.
2. Current scores: TU: 634 EQ: 631 EX: 621
Fico 9 score: 646
Any help would be very much appreciated! Thanks in advance and can't wait to participate more on here!
Ideally, you want to dress up your credit report before applying for more credit.
Those two maxed out cards may or may not be a road block.
I would recommend reading the below from ABCD2199
The Truth about Credit Card Utilization
My 11 Rules to Credit Rebuilding
FICO Score: What to pay down first?
From Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20
Paying down the two high util cards is what I would focus on right now. You have enough cards for credit mix, and most have decent limits. Getting denials from several major issuers is an indication that it's time to garden for a while. Once you have your cards below maybe 29% and your scores have gone up some you can check the Amex and Disco prequal pages and see where you stand.
At this point, as others have said I wouldn't apply for any new cards and I would focus on getting my utilization down. Getting your scores up will help you get in with other lenders. Opening new accounts actually will have a negative impact on your score initially, overtime it can help pad utilization but with your current profile I would expect limits if approved to be smaller and therefore not really much help for padding utilization.
I will add the game is much more fun when you are applying for cards and getting SUBs so it is worth it to go ahead and get those scores up before you go and apply for cards and then you will have more options with higher limits and potentially lower interest rates.
OP, not trying to judge, but merely understand, why do you want more cards? Those two nearly maxed cards need to be addressed first, as has been mentioned. Only then will you see score gains and improved approval odds.
I'll echo others here, that if you've got around $12k in credit card balances that you haven't been able to pay down, I would focus on that first. I don't think getting more credit cards should be your priority right now.
And particularly, you need to know that rewards/cashback cards (if that's what you're looking into applying for) are useless if you're carrying balances and paying interest. 2 or 3% back on purchases means nothing when you're paying 18% interest on those same purchases.
OR maybe you're considering new cards for good balance transfer offers, and that may be worthwhile but you may not get approved (or you'll be approved for less ideal terms) while your credit reports are showing 2 maxed out cards. Normal credit cards and BT cards are equally sensitive to applicants with high utilization.
Your credit profile right now is probably making card issuers VERY nervous. You've got quite a few cards, several of which are maxed out, and you're aggressively trying to get more cards. Have applied for cards from at least 4 banks in as many months, just got approved for one of them, and if you are still applying for more cards after that then you're going to start seriously look like a bust-out risk to the banks, and not only will it be very hard to get approved for anything new, you're risking getting adverse actions on the cards you have now.
Check out some of the threads about the advantages of "gardening" around here, and I would recommend not doing any more credit card apps for a year or two, and just work on paying down your current ones in the meantime. Let your credit profile catch up with itself before you try to expand on it again. As we like to say around here, credit is a marathon, not a race.
Total Loan Balance: $43k / $65k
Total SL: $78k