Apply for card now or wait until collection item is removed? Which card?

[Anonymous]

Hello Everyone! Long time browswer, first time poster. This website has been an incredible resource for me so thank you to everyone for your input.  

I've been taking steps over the past 2 years to clean up my credit history which is basically non existent. I currently have no CC's (Equifax shows one old Kay Jewelers card from 2001 as "closed"), I have about $37k in student loans that have 100% on-time payment history, and I had 1 negative collection item on my Equifax credit history which was a $712 medical bill that went to collections which I paid last week and I"m hoping will be remove from my history soon. This is not on my TransUnion score. 

I have not done a true Credit report but CK currently shows my scores as: 

TU: 729

Equifax: 664

Discover Scorecard shows my score as: 
Experian FICO: 770

I opened a checking account with Navy Federal Credit Union yesterday which I didn't realize they were going to make a hard pull on my credit (just to open my account). This took 1 point from my TU score. 

That all said - I'm now looking to aquire my first CC (in a long time) and I'm wondering if I should attempt to get a card now, or wait until the collection item is removed? 

- I have been preapproved for the AMEX Cash Preferred or Everyday cards and was considering the Preferred which has a $250 bonus offer for first $1k spent (and 6% cash back on groceries for first year). This does have a $95 annual fee though, and I'm afraid that with the collection item still on my credit that I would get a very low limit (maybe only $1k). 

- Alternatively I think I could get approved for the NFCU Cash Rewards Visa card. This only offers 1.5% cash back, but they tend to give out higher than average limits ($5k-10k+), which would allow me to charge more onto the card (to earn more cash back) while also maintaining lower % of limit used. 

- Any other cards recommended? 

Perhaps I should get the NFCU Visa now (to get the higher credit limit), and then once the item is removed in a month or two apply for the AMEX? I'm hoping someone with more experience can chime in with some advice. 

Any help and advice is greatly appreciated! Thanks in advance, 

[dragontears]

Check out discover scorecard to get your EX score for free so you have a better idea of what Amex will see if you apply

[rmduhon]

You can safely ignore the scores CK provides. They use Vantage 3 scores which very few lenders use. Amex generally pulls EX so you'd need to know what that score is and what that report looks like. Try the 7 day trial from creditchecktotal.com for $1 and see what your scores are and what's on the reports first. And NFCU does a HP for every credit app.

[Anonymous]

Ok I just ran the free Discover scorecard and it came back with a 770

I have 4 total accounts (all student loans) with avg credit length of 13 years which I think really helps my score overall (obviously any new cards would hurt that). 

Should I still do the creditchecktotal report? Or should I just pull my free annual report? 

[dragontears]

Sounds like the collection is only on EQ, with 770 and a prequal with amex you have a great chance if the card fits your spending

[Anonymous]

Thanks for the quick responses and feedback. So if AMEX only sees the Experian score than it doesn't really matter if I wait until the collection is removed from EQ? If they approve me, the limit should be the same regardless? 

Any other cards you may recommend given my scenario, score, etc? 

[bourgogne]

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@Anonymous wrote:

Ok I just ran the free Discover scorecard and it came back with a 770

I have 4 total accounts (all student loans) with avg credit length of 13 years which I think really helps my score overall (obviously any new cards would hurt that). 

Should I still do the creditchecktotal report? Or should I just pull my free annual report? 

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free anuual does not give you scores, cct is the best game in town, without it you are shooting in the dark.  measure 2x, cut 1x, dont rush it the cards will be there

[Anonymous]

Ok thanks again for the help. Is the Discover Scorecard accurate at all? That score is much higher than I expected, but without the 1 negative I only have 4 accounts of 13yrs that are all 100% on time payment - so I guess it shoudl be pretty good. 

DO you think I should wait until I see the $712 item drop from my CK report before I pull the CCT report? The collection company said they report every month, so hopefully it should be gone next month. Or does it usually take longer before it will drop off? I paid in full. 

Thanks!!!

[bourgogne]

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@Anonymous wrote:

Ok thanks again for the help. Is the Discover Scorecard accurate at all? That score is much higher than I expected, but without the 1 negative I only have 4 accounts of 13yrs that are all 100% on time payment - so I guess it shoudl be pretty good. 

DO you think I should wait until I see the $712 item drop from my CK report before I pull the CCT report? The collection company said they report every month, so hopefully it should be gone next month. Or does it usually take longer before it will drop off? I paid in full. 

Thanks!!!

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does not matter, get the cct, cancel it via phone.  at the end of 7 days you will have 2-3 more times to get a refresh for n/c.  don't screw around with a bunch of portals when you can use just one + cct is owned by ex, its format is far more professional and detailed than anything you are going to get for a buck.

[Anonymous]

So if I sign up for the 7-days and cancel, I could run another free report in like a month or so? I assumed cancelling would mean I couldn't view it any more. 

Thanks!