Apply or not? Amex Blue Cash Everyday

[Anonymous]

Hello,

I recently got approved for the Discover Student IT.. but silly me for not checking the AMEX site and noticing I was pre approved for the Blue Cash card which has a MUCH better intro offer.. ($150 + $75 with referral + 0% 14 months) that I wanted to use since I'm building a new PC soon (~$1,000). 

Should I wait a few months since I just got this Discover card? I also just got approved for Apple iPhone financing (Through Citizens One) so I have two new lines of credit just established and I feel like adding another might be pushing it. 

TU has 4 HPs, EF has 14, but 3 are from a dealership on the same day. 

I currently have:

- AMEX AU 15k limit

- Another AMEX AU 1k limit

- Cap One Secured (no rewards..) 200 limit

- Discover Student IT on it's way 500 limit

- Auto loan 11k remaining

- Apple iPhone loan $37/month, ~900 total (Not sure if this shows up.. or what effect it will have on my credit/ability to get a new card?)

AAoA is 10 months, but will go down when the two new accounts hit my report

Util is <10%

What do you guys think? Wait it out for a few months or just go for it? I'm leaning towards waiting three months and then apping but I'm not sure.

[HeavenOhio]

How old is your Capital One card? Has your Discover card hit your reports yet?

[joesbrat67]

As a current AMEX Blue Cash Preferred card holder (almost 3 yrs), I have had great success with mine.  I use it primarily for groceries (6% up to $6k, then 1% after that) and 3% in dept stores.  There is also 3% for gas stations, but where I use Cumberland Farms 10 cents off per gal membership, the BCP gas savings is only used when I am in an area where there is no Cumberland Farms nearby.

The difference is that the BCP has a $95 AF, where the BCE does not (and cash back %'s are lower on BCE than BCP, as a result).  Based on your HP data, I would hold off until 90 days and then give it a try.  I would target the BCE, and if your economic outlook allows for it in the future, you can try to PC to the BCP.

Hope that helps!

[Anonymous]

Cap One card is a couple months old, it just hit today and dropped my AAoA to 7 months. When Discover hits it will go even lower. I just checked AMEX Pre approval site and there are no offers anymore. Looks like I might need to play the waiting game. 

[iheartwings]

If the question is whether one should wait versus not, I think waiting is always prudent. 

For me, there are a few questions:

• Are you looking for the BCE for just the bonus and financing alone?
• Or, are you looking for a rewards card with tiered benefits? Do you do a lot of grocery shopping? 
• Would you be getting a flat rate rewards card? 
• Are you tied to getting AmEx? 

AmEx has Cash Magnet with $250 cash back ($150 cash back after 1k spend in 3 months + $100 cash back after $6.5k spend in 6 months+0% APR for 15 months). That's not considering any referral bonus. You mention wanting to use the card to build a computer - and you'll get more cash back with 1.5% flat if you're not using the card specifically for the bonus categories. It's also part of the Blue Cash family of cards, so if you're dying to eventually use BCE or BCP, you can PC to either of those (I just PC'd my BCE so that I can justify using it more often. ). 

My suggestion is to wait it out, and use that time to look at other providers (Discover has double cash back for the first 12 months, 0% APR for 14 months) and see if you may qualify for other deals. 

Hope that helps. 

[red259]

Depends on your long term goals. Factor in things like lenders who will deny cards if you have too many cards recently. Example Chase with 5/24. If you have no interested in lenders who impose those types of limits then Amex is not a bad lender to get a revolver with since you can grow the credit line in time

[HeavenOhio]

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@Anonymous wrote:

Cap One card is a couple months old, it just hit today and dropped my AAoA to 7 months. When Discover hits it will go even lower. I just checked AMEX Pre approval site and there are no offers anymore. Looks like I might need to play the waiting game. 

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You'll drive yourself nuts if you worry about AAoA early in your build. Concern yourself with AoYA (age of youngest account) and AoOA (age of oldest account).

I'd let the Discover card age six months before applying for anything. Remember that with its cashback match, it's a great gardening card because it isn't competing for spending with any other sign-up bonus.

I'm a fan of one card every six months, i.e. a card in month 1, month 7, month 13, month 19, and month 25. This should prevent denials based on new accounts and inquiries, and it always keeps one below 5/24. Additionally, customers with clean files should be well positioned for a Chase card in month 13.

Getting two cards like you did is fine too. But I'd try to work my way back to the above schedule at some point. Definitely don't get card #5 until month 25.

I think in your case, I'd get the AMEX when your Discover card is is six months old, which would be approximately month 9. Month 9 with two previous cards that have aged a little is a great spot for AMEX. Get a fourth card anytime in your second year, maybe month 16. Than hang tight until month 25.

How long have you been an AU on each of the AMEX cards? If you were added within the past two years, that's going to affect how Chase will fit in.

[Anonymous]

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@HeavenOhio wrote:

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You'll drive yourself nuts if you worry about AAoA early in your build. Concern yourself with AoYA (age of youngest account) and AoOA (age of oldest account).

^This

I sort of restarted my credit a few years ago. It wasn't anything bad, I just swore off credit and paid everything cash, but was fortunate to have an old closed account still there that helped when I started applying again.

Flash forward to last year, with two cards my AAoA was at just about two years (the old account fell off). I got a new card, and the AAoA dropped to less than a year and a half. This year I apped for two more cards, and the AAoA dropped again. My credit scores are still in the upper half of the 700s (experian was 802 before my last apps).

The thing is, building credit is not a sprint, it's a marathon. Ok, for a few years your AAoA will take hits when you get a new card, but if you play the long game and space them out, it won't be huge. Over time it will start to matter less and less.

[Anonymous]

Thank you for the insight, the cash magnent looks like a pretty good option, I haven't looked at that one. 

I like AmEx and my family has been with them for a long time, but ultimately I'm interested in Amex/Chase. Eventually I want the Saphire cards, but that is 2-3 years out.

Most of my spending right now is on gas, travel, and just discretionary (shopping, electronics, etc.). I eat out a lot and don't purchase many groceries. 

I think I'll give it a few months and then revisit it!