Help!! Went on app spree and now need help to decide...

[Anonymous]

Hey everyone,

This is my first post after using all the useful info from the forum to go on my APP Spree...In the order of application and decisions: (All within a 2 month span)

1. AMEX BCP and AMEX SPG, (same day), approved for BCP instantly CL of 7500.  Got the 7-10 day message, checked status after 24 hrs and said approved---7 days later got CL of 2000 (2 pulls on Experian)

2. Chase Freedom, pulled experian, got 7-10 day message, got letter in mail asking if I did apply, threw the letter in the drawer and assumed I was denied so I didn't call.  

Fast forward 3 weeks from approval of AMEX BCP, starts reporting on my EX report, and get this because I was an auth user on my sisters account, the new account was backdated 1 year!  After this happened, I started reading on recons for Chase Freedom on the forum, and that encouraged me to call Chase, but then realized that it was the 29th day from which I originally applied.  The rep that answered said that I would have to speak to the verifications dept which was only open on weekdays (it was Saturday when I called), so I held my breath and hoped that they would still use the original pull for the decision.  

On Monday, I called in the morning and my heart was beating very fast when the rep answered the phone and I explained to him that I called over the weekend and his department was closed and I was hoping they could use my original to consider since my AMEX BCP is now reporting and asked if he could do a soft pull to verify that info ( I made sure to mention that although I love AMEX, I would love the Chase freedom more because it was accepted at more places and had better rewards :-) ).  He verified some identity questions with me, and after passing the verification, he told me to hold on while he took a look at my application.  The 1 min seemed like eternity, but he came back on the line saying great news I can approve you for a CL of 6,000!  Needless to say I thanked him!

3. App for Key Bank Business card and got instant decline, did not recon since I didn't find much on this forum about Key Bank and whether they allowed for an actual recon

4.  Bank of America Americard (standard VISA), declined (pulled EX). (My AMEX BCP didn't show yet)

5. Discover More, declined, but allowed to reapply with co-signer--which I was not going to do, so declined (pulled EQ and TU)--wasted 2 inq (AMEX BCP didn't show yet)

6. BofA Americard signature VISA (another hard pull on EX), gave me the 30 day message, assumed it was a denial, but after the successful recon with Chase decided to recon Bofa also, the first rep looked at the app and said she could not approve since I only had 2 tradelines, 1 the AMEX BCP and another small CRAP one card and 1 AMEX I was an auth user on, so she said I was denied due to limited credit history and too many inquires.  I asked her to transfer me to the recon department since I had nothing to loose.  The lady was really nice and she asked about all my recent inquires, and I told her that I was trying to get some new tradelines on my report so in 3 years I could buy a house.  She asked me why I didn't already have established credit since I was over 30 years old, I told her that I always lived under the belief that I would have no debt by paying for everything in cash, which is TRUE, but then, I need credit in the US to buy a house or anything else, so now I am establishing my credit slowly.  She seemed satisfied by this answer and I told her that AMEX gave me 7500 and she told me to hold on while she looked at my report.  She came back and said thank you for holding, I am able to approve you with a CL of 5,000!  I couldn't believe it!

7. Penfed Visa (pulled EQ), denied due to not enough history 

This is where I need the help:

I decided to call Dicover and recon so I can complete my wallet.  I applied on the 29th of Jan, and called in on Feb 29th, thought I got in just in time for them not to pull credit again---wrong!  They insisted they had to pull credit again---get this both EQ and TU AGAIN!  She said because I had limited history, she could only approve me for 1,000CL, I said I don't know since I already got approved for Chase and BofA and both cards are 5,000 CL and up and I didn't know if a CL of 1,000 from discover was worth it since I already had 3 new accounts that would report next month.  She convinced me after being pushy and blatantly lying to me saying that I still has 7 days from the time she approved me for the card (and me accepting) that I could cancel the account WITHOUT it reporting to my credit report.  I call in today to cancel my account (I have not received the card yet) and the lasy in closing accounts dept told me that it will report to my account even if I close it today and advised me not to CANCEL because it will reflect negatively (would look like I was irresponsible with credit if I open an account and then reports as closed within 1 mo).

The reason why I am nervous is because of the new inq (I have 7 inq on EX within 2 months, 4 on EQ, and 6 on TU), and also AMEX now is softing my EX report literally every other day now, probably because of the new inq...

I REALLY want to close the discover card like now, do you guys think its a good idea?  Will closing it hurt my credit like the discover rep said?  Should I worry about AMEX softing EX?

Any help would be greatly appreciated!

My info:

AMEX FAKO EX: 732

penfed EQ FICO: 726

TU FAKO: 742

Income: 100K

AAA: 1.2yrs

oldest: 2.5years

Inq: 7 EX, 4 EQ, 6 TU

[pipeguy]

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@Anonymous wrote:

snip....

I REALLY want to close the discover card like now, do you guys think its a good idea?  Will closing it hurt my credit like the discover rep said?  Should I worry about AMEX softing EX?

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Considering the number of hard pulls you just used and the cards you managed to get, I'd say it will NOT hurt you at all to close the Discover. You acquired some really good prime accounts which you need to let mellow for a year or so, whether you have a $1000CL Discover in there won't make much difference either way. On the other hand if the Discover does not have an AF its not going to hurt you to keep it.

You are going to take a double hit here, lots of new HP's, plus lots of new accounts. On the other hand your available credit (limits) will increase which will help, but don't be surprised if your credit scores take a 20+/- point hit (decrease). Good news is that once your accounts age a bit, 6 months and then 12 months, you'll recover fully and with proper management of all your new credit, you'll be able to app for anything you want and get it.

[bichonmom]

Well, first congrats on the new cards! You've done really well, considering what you started with.

I'm not a fan of Discover. Based on my experience with them years ago and what I've read here. They just don't seem very generous in the CLs. But you already got the hit -- in more ways than one. You got multiple HP and a new acct. reporting. Yes, the first woman gave you erroneous information about opening the acct. If I were you, I'd just keep it. I don't think closing it is necessarily bad, but your AAoA is going to take the hit one way or the other. At least this way, you can build positive history with an added TL, and you also get a little help with your util. Maybe just make a small purchase on it every few months and PIF.

That is a lot of inq and could be alarming to Amex. I would use the cards minimally for a few months and make sure your util reporting is VERY low. I wouldn't have more than 1 or 2 CCs report a bal MAX, and make sure it's a SMALL balance. Beyond that, there's nothing else you can do. Of course, don't do anything that's going to be a HP for at least 3 mos, but 6 would be better.

[Anonymous]

I don't think it will make much difference either way.  With your other much higher credit limits it won't effect utilization.  The only other effect is that it will drop after 10 years, but with these other accounts opened at the same time, it won't drastically affect AAoA then.

While I usually advocate only keeping a small number of open accounts and closing ones that no longer serve a purpose, if I had already gone through the trouble of applying, I think I would keep it.  I might keep it sockdrawered, only occassionally using it for the bonus categories.  You can always try for credit limit increases down the road, plus their customer service is always ranked highly.

[annalog]

I've never read a post where someone was so fixated on establishing tradelines.

Now, you're going to have to wait at least 2 years before they drop off. 

This will hurt your credit score more than if you hadn't applied for any of the cards.

Now that you have them, keep them open and don't carry any balance over 10% of your credit limit for the next two years.

I hope you're not paying any annual fees for these cards.

Your credit score for a mortgage only impacts  your interest rate, not your approval.

Your income and job history are more important to a lender than your credit score.

[Anonymous]

Hey Annalog,

I think I got carried away...hearing approval is soooo addicting!  Also someone told me that I needed to have at least 3 open tradelines reporting for 2 years in order to qualify for a mortage with a good rate and min. down payment.  Like I said I am fairly new to credit...and trust me, I am gardening for the next year or so at least!  I have all the cards I need right now, and since I have prime cards, I WILL make it a priority to garden them, there are no other cards I want right now....then again in 6 months I may read approvals from the Chase sapphire preferred and get itchy fingers J/K (I hope)...

Thanks for your concern and input!

[Anonymous]

Thanks for your insight, since there is no AF, I will probably use is 1 time a month for the reward shopping online if what I buy gets at least 10% cash back, and then PIF and sock drawer it....does that sound like a good plan?  Keep the card?  If MyFICO forum members all agree than I will keep...taking votes now....

[Anonymous]

Aside from Discover, I will have Chase Freedom, bofa sig visa and AMEX starwood reporting next month...so now should I close discover?

[Anonymous]

Right after reading your post, I went to AMEX website to make a payment, but for some reason it will not let me make payment on the full balance, is this because the account is new and I already made a payment 2 weeks ago?  I really want to pay now and bring the balance down to 0, I am thinking of doing the payment straight from my bank's bill pay and lay off AMEX card use for another month or so...what do you think?  

[annalog]

Thanks BCB.  I was there once.  I'm old now.   LOLOL.

It IS addicting.  I think at one point I had 17 credit cards.  What was I thinking?

Here is a good maxim for credit:   Quality over Quantity.

2 tradelines with a good history is better than 10 with little history.

Whatever you do, don't close the accounts you opened.

To help with your addiction (LOL), you can call each credit bureau and ask them to "Opt Out" of pre-approved marketing solicitations.

This should help alot.  If you don't get the applications in the mail, you'll be less tempted to apply.

Best of Luck to You.