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Getting approvals, but how aggressive should i be?

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Getting approvals, but how aggressive should i be?

As stated in the title, I'm finally at a place where i'm getting approvals. But how aggressive should I be on applying?

 

Alternatively:

 

Should I do one then wait for a while? Or stick with my best current approval and hang out until i can get even better rates/lines? (Year or two?)

 

I've said in earlier posts, I wasn't given the 'credit talk' as a teenager and made some mistakes. I'm finally clearing it up and things are looking better. 

Really, I'd like to optimize my current situation. Whether that would be more or less open credit - whatever is better Smiley Happy

 

EX: 653 TU: 623 EQ: 631

CapitalOne secured for 500  23% -7yrs (late one month 6 years ago, everything else on time)

Credit One unsecured 1750, 24% with a kinda bad annual fee- been advised to drop them, will do so next billing cycle -5yrs

CapitalOne unsecured 1000 23% - new

Citi Doublecash 1000 23% - new

↑ organized by credit age

 

Thanks again guys,

Your incompetent man-child of credit-

Jonfive

31 REPLIES 31
Regular Contributor

Re: Getting approvals, but how aggressive should i be?

It really depends on your goals. 

 

Definitely, at this point, I'd only plan to apply for cards you'll really use long-term. For me, I got a whole lot more selective about the cards I wanted once I got the DC. If a card doesn't get more more than 2% in a category I spend in regularly, I just don't see the need, personally. If you are considering any Chase cards, you are still in that 5/24 window, so be mindful of that (looks like you've opened 3 in the past 24 months). 

 

Not knowing more about your spending, the Chase Freedom and Discover It might both fit well for you. They are a great pair to have with the Citi DC.

 

I might also try to lower your utilization. It's not crazy high, but getting them all down under 10% would be a good idea. I'm assuming you aren't carrying balances from month to month. If you are, I'd stop that if you can.

CapOne Secured ($500), Discover It ($1600), BOA Cash Rewards Secured ($500), Amazon Store Card ($2700), Chase Freedom ($6000), Citi DC ($3200), AMEX BCE ($3000), Chase Amazon Visa ($2000)
Message 2 of 32
Established Member

Re: Getting approvals, but how aggressive should i be?


@PapasChileHuevos wrote:

It really depends on your goals. 

 

Definitely, at this point, I'd only plan to apply for cards you'll really use long-term. If you are considering any Chase cards, you are still in that 5/24 window do, be mindful of that (looks like you've opened 3 in the past 24 months). 

 

Not knowing more about your spending, the Chase Freedom and Discover It might both fit well for you. They are a great pair to have with the Citi DC.

 

I might also try to lower your utilization. It's not crazy high, but getting them all down under 10% would be a good idea. I'm assuming you aren't carrying balances from month to month. If you are, I'd stop that if you can.


Exactly what i was looking for Smiley Happy

 

- the only one i carry a balance on is the CreditOne, 200 bucks left on it after a heating oil tank catastrophe Smiley Tongue

I'll pay that off next statment, close that card and continue with your suggestions of the Chase Freedom and Discover It cards. After, I'll hang on to those and sit.

 

Thank you very much for the informative reply Smiley Happy

Message 3 of 32
Community Leader
Super Contributor

Re: Getting approvals, but how aggressive should i be?

Honestly, I would wait and use the cards you have wisely and watch your scores get higher. Higher scores get larger CL's plus lower APR. Definitely worth the wait. Wise use of your accounts can have a quick impact on your score depending on what else you have in your reports.Good luck!


Daily Drivers: Penfed Platinum Rewards; NFCU GoRewards; Discover..
Message 4 of 32
Established Member

Re: Getting approvals, but how aggressive should i be?


@Musiclover wrote:

Honestly, I would wait and use the cards you have wisely and watch your scores get higher. Higher scores get larger CL's plus lower APR. Definitely worth the wait. Wise use of your accounts can have a quick impact on your score depending on what else you have in your reports.Good luck!


I see..

So over the long term, should I begin to close out high APR cards and replace them with with lower APR/Higher-limit cards?

Or keep the higher APR cards in a drawer and leave them open indefinitely?

 

If it doesn't incur fees I don't see any damage, or will simply having those high APR/Low-limit cards hurt me in the long run?

 

Looking to close my only account with an annual fee next month.

Message 5 of 32
Valued Contributor

Re: Getting approvals, but how aggressive should i be?

I'd put them away (maybe use it occasionally) just to keep them open. At some future point they may be closed due to inactivity (unless you do use them occasionally) but even then the account will stay on your reports for another ~10 years increasing your AAoA even more. Just make sure to check the account periodically to make sure everything is right.
Message 6 of 32
Established Member

Re: Getting approvals, but how aggressive should i be?


@rmduhon wrote:
I'd put them away (maybe use it occasionally) just to keep them open. At some future point they may be closed due to inactivity (unless you do use them occasionally) but even then the account will stay on your reports for another ~10 years increasing your AAoA even more. Just make sure to check the account periodically to make sure everything is right.

Gotcha,

 

I have a few domains and a VPS that I pay for annually. Maybe i'll set up the stagnant cards to pay those individually to keep them open. Only going to be about 40-50 bucks/yr.

 

Great info and thank you again!

 

Would be neat to find a way to aggrigate all your accounts into a single secure app where it pulls all your information/due-dates/statements/payments. Then, have a big overview rather than making a manually driven excel sheet :/

Message 7 of 32
Super Contributor

Re: Getting approvals, but how aggressive should i be?

I personally would not apply for more cards if I were you.  In fact, once someone has 3 credit cards their revolver portfolio is already big enough for maximum FICO scoring.  The only situation where I would be recommending that you app is if you had 0-2 cards, but you're already past that. 

 

99% of the time that someone starts a thread similar to this, my answer is DON'T APP.  Wait 6 months until your scores are higher if you really NEED another card.  Key word is NEED.  If you just WANT another card, wait longer... a year+ IMO.  As has been mentioned above, strengthening your profile will result in more favorable approvals such as higher starting limits, lower APRs, etc. 

 

If you just use the 3 cards you have now and PIF every month, or keep your balances at 9% or less as was mentioned already and just allow your accounts to age with on time payments you'll be in a much better place in 6 months and in a fantastic place 12 months from now.  6 months from now you could have scores all hovering around 700 and 12 months from now maybe 720 or so.  At that point you'll be able to get approved for a card or two with probably a $5k - $10k starting limit with better terms. 

 

In the meantime, I'm not sure if you still have any negative information on your reports from your teen years as you mentioned or if all of that stuff is gone.  I'm assuming some still remains based on your scores.  I always recommend during these times of gardening for 6-12 months prior to apping again that people focus on getting rid of negatives... perhaps writing goodwill letters to creditors asking for the removal of late payments and such.  Getting baddies removed can increase your score FAR more quickly than just doing nothing and allowing time to do its thing.

Message 8 of 32
Established Member

Re: Getting approvals, but how aggressive should i be?


@BrutalBodyShots wrote:

I personally would not apply for more cards if I were you.  In fact, once someone has 3 credit cards their revolver portfolio is already big enough for maximum FICO scoring.  The only situation where I would be recommending that you app is if you had 0-2 cards, but you're already past that. 

 

99% of the time that someone starts a thread similar to this, my answer is DON'T APP.  Wait 6 months until your scores are higher if you really NEED another card.  Key word is NEED.  If you just WANT another card, wait longer... a year+ IMO.  As has been mentioned above, strengthening your profile will result in more favorable approvals such as higher starting limits, lower APRs, etc. 

 

If you just use the 3 cards you have now and PIF every month, or keep your balances at 9% or less as was mentioned already and just allow your accounts to age with on time payments you'll be in a much better place in 6 months and in a fantastic place 12 months from now.  6 months from now you could have scores all hovering around 700 and 12 months from now maybe 720 or so.  At that point you'll be able to get approved for a card or two with probably a $5k - $10k starting limit with better terms. 

 

In the meantime, I'm not sure if you still have any negative information on your reports from your teen years as you mentioned or if all of that stuff is gone.  I'm assuming some still remains based on your scores.  I always recommend during these times of gardening for 6-12 months prior to apping again that people focus on getting rid of negatives... perhaps writing goodwill letters to creditors asking for the removal of late payments and such.  Getting baddies removed can increase your score FAR more quickly than just doing nothing and allowing time to do its thing.


EXCELLENT! 

 

I have one ancient medical collection (that I unknowingly woke up 2 years after). It will be gone in February this year.

 

No more apps Smiley Happy

 

End goal - I bought a foreclosure cash 3 years ago and I'm nearing getting it 'mortgageable' and I'd like to get a good rate in the next few years to pay myself back and further improve it.

Message 9 of 32
Valued Contributor

Re: Getting approvals, but how aggressive should i be?

In that case, a Lowe's or Home Depot card may be a good choice. They can come in handy if something goes wrong (fridge going out, or an AC/heater depending on where you live). I know Lowe's has deference financin for purchases (differing lengths of time depending on the price) and you can get a fairly large limit. I don't know much about Home Depot.
Message 10 of 32
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