I'm new to taking this much interest in credit cards, as I'm not used to having good credit. Over a decade ago I had to negotiate payoffs with the credit cards I had, and I've avoided them since. I only started using one after getting the Barclay Apple rewards card to buy a new laptop. Having paid that off within the 0% promotional period, I started using it for monthly expenses to rack up Apple gift cards.
That got me interested in what else was out there. Now I have my eye on a Chase Sapphire Reserve, but I just put a $2k expense on there that will take me a while to pay down. It puts my utilization at ~24%.
Looking around for other useful cards, it occurs to me, instead of waiting until I pay off the Barclay card, what about applying for another card before applying for the CSR? That would decrease my utilization. Pros/cons? Best cards to do this with? The Amazon Prime Store Card is something I would actually find useful. Still researching options.
@JoshSF wrote:I'm new to taking this much interest in credit cards, as I'm not used to having good credit. Over a decade ago I had to negotiate payoffs with the credit cards I had, and I've avoided them since. I only started using one after getting the Barclay Apple rewards card to buy a new laptop. Having paid that off within the 0% promotional period, I started using it for monthly expenses to rack up Apple gift cards.
That is a very bad idea; using a card to get rewards only pays off if you pay your account in full every month. If you're paying interest, that outweighs any 'rewards'.
That got me interested in what else was out there. Now I have my eye on a Chase Sapphire Reserve, but I just put a $2k expense on [Barclay Apple card] that will take me a while to pay down. It puts my utilization at ~24%.
Looking around for other useful cards, it occurs to me, instead of waiting until I pay off the Barclay card, what about applying for another card before applying for the CSR? That would decrease my utilization. Pros/cons? Best cards to do this with? The Amazon Prime Store Card is something I would actually find useful. Still researching options.
That is another very bad idea. The points you would lose by making new credit applications would eclipse any points you gain by increasing utilization.
Relevant info:CCT reports the following scores: Exp 750, TU 741, Eq 716
Revolving credit usage currently at 24%
AAoA = 12.7yrs (Exp), 13.6 years (TU/Eq)
Cards & Limits
Barclay Apple Visa - $8500
Capital One Visa - $750
Your credentials are probably good enough for the CSR. You can check at a branch or on the website for pre-qualification. You should not apply for other cards before applying for the CSR.
Thanks for the reply! I think I was unclear in the first paragraph: I have paid off my account in full every month except for this last one. So the Apple gift cards have been zero cost to me :-)
Appreciate your perspective on my questions and encouragement to check out pre-qualification. I can't do it online so will head into the branch with fingers crossed.
I agree with SouthJamaica
You need to set down and draw up a plan before just appling for cards. If you are going to buy a house or major credit purchase in the next year hold off on anything but CLI with soft pulls.
Less than 3 years ago I only had 1 card with a $500 CL. Now I am at 16 cards with $131,000 CL. There is a lot of great info on this site but you need to deside what is best for your situation. Me personally I benifit from the cash back cards better than rewards.
Good luck
@JoshSF wrote:Thanks for the reply! I think I was unclear in the first paragraph: I have paid off my account in full every month except for this last one. So the Apple gift cards have been zero cost to me :-)
Yeah you threw me off on that when you said it would 'take you a while to pay it down'
Appreciate your perspective on my questions and encouragement to check out pre-qualification. I can't do it online so will head into the branch with fingers crossed.
Definitely do some "big picture" planning before you apply for a credit card. What types of cards would benefit you the best? What order would work best in applying? What banks/credit unions would work in your master plan?
Lower utilization is definitely a worthy goal. Adding a couple of cards to expand your portfolio is also good, although the interest rates offered possibly will be high with your current utilization. I guess, what I am really saying is to have a plan. I was just lucky in my rebuild and although I planned, I would definitely do a better job with what I know now.
Good luck! 