If you open a new card with a $0 annual fee and *never* use it, will it ever be reported?

[CreditInspired]

I guess you have to ask yourself a question: Would you be disappointed if AmX declined your application or gave you a $1K SL. If either scenario would make you curse wildly at yourself, then your best bet is to not apply. TBH, if it were me, I wouldn't think of applying before 12 mos have passed since the last application--at a minimum 6 mos. But that's me.

I do want to talk about that 35% UT--too high! How many CCs do you possess? Are you carrying a balance on more than one. If yes, what's the highest UT on that card? To improve your odds of a decent approval and SL when you do apply for a CC would be to have your aggregate UT <8.9%.

I still suggest lying low for the time being.

[Anonymous]

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@CreditInspired wrote:

I guess you have to ask yourself a question: Would you be disappointed if AmX declined your application or gave you a $1K SL. If either scenario would make you curse wildly at yourself, then your best bet is to not apply. TBH, if it were me, I wouldn't think of applying before 12 mos have passed since the last application--at a minimum 6 mos. But that's me.

I do want to talk about that 35% UT--too high! How many CCs do you possess? Are you carrying a balance on more than one. If yes, what's the highest UT on that card? To improve your odds of a decent approval and SL when you do apply for a CC would be to have your aggregate UT <8.9%.

I still suggest lying low for the time being.

---

Believe there was a slight misunderstanding -- I'm not sitting at 35.0% UT, I'm sitting at 0.35% UT! All cards are reporting $0 utilized, except my CSP, which shows $84/$11,600 utilized. 

Edit: But to answer your other question, I have:

1) DiscoverIT Cash - $7,400 limit ($0 UT)

2) USAA Platinum - $6,000 limit ($0 UT)

3) Chase Sapphire Preferred - $11,600 limit ($84 UT)

4) Best Buy Card (from before I started really caring about my credit) - $1200 limit ($0 UT)

5) Capital One VentureOne - $1,000 limit ($0 UT)

And I'm an authorized user on:

6) USAA American Express - $15,000 limit ($0 UT)

7) USAA Platinum - $2,600 limit ($0 UT)

EX AAOA: 5 yrs, 2 months

EX Oldest acct: 9 yr, 1 month

[Anonymous]

My thought is that -- this year, with these new accounts (CSP, VentureOne, hopefully an AMEX or two) I'll be truly establishing my base foundational credit, establishing a strong relationship with multiple lenders, from which the next 5-10 years can be built.  

Have put together and been using a fairly solid spreadsheet from which I've aggressively rebuilt my credit after taking a fall. Started a company and gained investors on a handshake (and weak contract) about ~2 years ago, and essentially maxed out my cards at the time to put that together... Missed a payment or two on a cc (never more than 3 days late, so it doesn't show on the report), but I was sitting at about 591 VantageScore back in February/March, and around 600 FICO 8. The investors ended up taking the tech I built, leaving me dry and starting from square 1.

Came on with a new company in an executive position this past February, and since March/April when I began rebuilding, I've raised my scores to 790 VantageScore - which I know doesn't really matter too much, but it's a much more exciting number/rise to look at - and 723:EQ 733:TU 720:EX. Took UT from around 95.0%, down to now 0.35%, opened up the CSP as my first card in 3-4 years, and now trying to build for my future.

[Anonymous]

This could go one of two ways, but BOTH outcomes involve the account at least being reported as having been opened, and details pertaining, such as credit line, balance (would be $0) and perhaps high balance ($0). 

1.) Your lender reports paid as agreed. $0 balance. This has been my experience more times than not in over 30 different cards observing for at least the past 10 years. 

2.) The only time I've had a different outcome was with a Jared (jewelers, issued by Sterling Bank) card, I did not use it after the initial opening purchase, and all $0 months were reported as "no data" instead of "paid as agreed". Minor difference but noteworthy and did not impact my score or and no weird effects on AAoA. 

[Anonymous]

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@CreditInspired wrote:

I guess you have to ask yourself a question: Would you be disappointed if AmX declined your application or gave you a $1K SL. If either scenario would make you curse wildly at yourself, then your best bet is to not apply. TBH, if it were me, I wouldn't think of applying before 12 mos have passed since the last application--at a minimum 6 mos. But that's me.

I do want to talk about that 35% UT--too high! How many CCs do you possess? Are you carrying a balance on more than one. If yes, what's the highest UT on that card? To improve your odds of a decent approval and SL when you do apply for a CC would be to have your aggregate UT <8.9%.

I still suggest lying low for the time being.

---

Considering your long-standing experience in this, I trust your judgment -- With the new information I've provided above, do you have any additional thoughts/opinions on the subject? And whether apping for the AMEX I'm thinking of is still a bad idea, or whether it looks a bit more reasonable considering the 0.35% (rather than 35.0%) UT? I know it's most prudent -- generally -- to wait 6 months between apps, so-as to not appear to be active in "credit seeking" behavior. But, a large motivation I have in this lies in my desire to utilize the new CCs for the purposes of furthering my business, re-establishing revenue for my business (essentially -- investments) while running the lower risk/impact that carrying a balance for a month or two may have on my credit score. That, in addition to getting a relationship started with AMEX either way, as I know AMEX is a wonderful issuer with which to establish a relationship; seeing as I've already begun my relationship with Chase after acquiring my CSP.

[Anonymous]

I think with the goals you have in mind, looking at Amex business cards would be better, especially since you want to help your business with the lines of credit your cards provide. I have no business cards and don't know the ins and outs of them, but many here do. Potentially larger lines of credit could be available, and if you can get them on the strengths of your business without a personal guarantee, they wouldn't report on your personal credit. That would help some with the optics of credit seeking. 

Likely someone who has business cards will weigh in and fill in the blanks as well as correct anything I may be misstating. 

[NRB525]

Have you asked for a SP CLI on the Discover card? What are the CLI methods for the USAA card?

If nearly all your spend goes through the CSP, and paying in full each month, Chase is going to be quite happy with you. 

Do you see balance transfer offers on your Discover card? If "carry a balance" means paying interest, using a BT to Discover can be a better interest rate.  

The prequal you have on AMEX may be just as well used on a charge card like Green, Gold or Platinum. The Platinum gets their interest because of the AF.  

Be aware there are interpretations off the AMEX earnings call that AMEX intends to be more selective in new applications because of the uncertainty created by Covid.  2x 30-day lates might be a factor. 

[Anonymous]

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@NRB525 wrote:

Have you asked for a SP CLI on the Discover card? What are the CLI methods for the USAA card?

If nearly all your spend goes through the CSP, and paying in full each month, Chase is going to be quite happy with you. 

Do you see balance transfer offers on your Discover card? If "carry a balance" means paying interest, using a BT to Discover can be a better interest rate.  

The prequal you have on AMEX may be just as well used on a charge card like Green, Gold or Platinum. The Platinum gets their interest because of the AF.  

Be aware there are interpretations off the AMEX earnings call that AMEX intends to be more selective in new applications because of the uncertainty created by Covid.  2x 30-day lates might be a factor. 

---

Started SP CLI my Discover card in the last month, have taken it from $3k to $7.2k. Fingers crossed Chase gives one of their ultra-rare auto-CLIs that's been one of the goals so far as routing all charges through them.  Discover has given me the BT offers, and I had used them a bit before paying it in full. At this point, not carrying a balance on a single card. The prequal I'm showing for AMEX is for their BCE revolver rather than any charge cards, although it shows under AMEX "MyCredit" rather than under their standard prequal forms... Previously (eg. 2 week ago) I have been prequalled at different times under their standard form for their Platinum, Gold, Green, BCE, Cash Magnet etc. Once my debt consolidation loan appeared on my CR (which then took a $4k revolving balance I had on a card down to 0% UT) the prequals disappeared. Thought I was doing myself a favor by diversifying my types of credit + paying my last card down to 0% so I'd be sitting around 1% total UT, but maybe that was more frowned upon due to the loan being a "new account" than if I were to just transfer the $4k balance to my Discover.... Thinking on it, perhaps I should have done that. 

I can imagine AMEX would be more selective in their applicants at this time. It's rough that, at the time I decided to start very heavily focusing on rebuilding my credit, it just so happened to also be the same time that COVID struck -- and made doing so much more difficult. I suppose I really can't complain at all in the grand scheme of things about credit, considering there is so much that is so much worse at the moment -- but the timing is a bit frustrating.

Regarding the 2x 30-day lates, they are both over 4 years old now -- and I have no other derogs on my report; no collections, no anything. Other than those 30-day lates, and what is now considered to be a "high balance" due on the $4k loan as I just opened up, I'm showing less than 1% total UT, no derogs, substantial income, fair length of credit history, etc.... 

I know it sounds like I'm acting in a manner regarding confirmation bias in terms of my decision, and I'm trying to stay consciously aware of that fact -- and make a rational, sound decision rather than let my desires guide me. But, I do very much want to get a relationship started with AMEX, I know they tend to give out high SL and offer 3x CLI, offer soft pulls to acquire their other cards, have some of the best benefits in the game other than Chase -- which was the first I started my new-found credit relationship with, and overall have great advantages. 

It was asked earlier if I would be frustrated if I got a $1000 SL from AMEX -- and the answer is, yes, I would be. My VentureOne $1000 SL was frustrating, as that counts as a "new account" that would go against my ability to easily get any other new accounts with a higher SL had I just waited rather than app'd. I know VentureOne will be a good card to have in my collection in general, once I start putting spend on it and have the CL raised, but timing-wise I know it wasn't the best.

If I were to get a $5000 SL from AMEX, I'd be happy. It would be a solid building block, and with 3x CLI down the road, would be really great. $10k SL (which sounds pretty unlikely between the responses I've seen here on the forums, the current COVID crisis, my recent inquiries/new accounts) I'd be ecstatic. But, even if I were to ultimately get a $1000 SL with an AMEX revolver, at least I know I'd have a shoe in the door. 6 months down the road could look at acquiring another revolver from them with a SP and likely get a much higher SL as my credit would continue to rise, my loan would be paid down, I'd have more distance from any new inquiries or new accounts, and I'd have a history with AMEX by that point showing high card use but always PIF. That, and my income should be a good bit higher than it is now. 

Plan is essentially to use this period to establish -- again -- my base credit foundation so far as cards are concerned, demonstrate my ability to handle an installment loan (3rd technically -- as I'd learned that Affirm installment loans counted in the past, though those were for much lower amounts). After a year has passed with no inqs and I'd be sitting closer to 800, take out my first mortgage. That's the thought so far, we'll see how it goes and how it looks as COVID continues, the effects it has on the economy continue, etc. I hold an executive position in two companies, and am revamping the company I started 4 years ago that I had let sit by the wayside for the last year. Working in the nutritional supplement space, and hand sanitizer space....stability so far as job security and income security is seeming pretty solid for me at the moment.

As for USAA -- HP every time it's a customer request

[Anonymous]

I'd use the card each month or every other month for a year and report a small balance, even if you don't like the card. You opened it, and you might as well use it to help build credit. Then decide after a year what to do. 

[Anonymous]

@Anonymous 

I have nothing against the VentureOne - and I know that by continually raising my scores, and then putting charges through the card and PIF, it will end up being a really great card with a solid limit down the line. My thought/concern was that - it still hasn't posted a "new account" yet to bureaus, which has kept me that much further away from "most recent account opened;" which would be helpful in terms of the fact that I'm hoping to get an AMEX card before the new account shows up and therefore begin my relationship with AMEX, considering they're a wonderful issuer and a great one to have a long-standing relationship with.

Current personal CL: ~$27k

CL with AU included: ~$45k.

Current posted UTL: 0% (or really 0.35%, which has been rounded down in the reports I've seen)

Base salary: $150k/year... It seems like my personal CL is quite low compared to what I may be able to achieve. I'm not seeking an ultra-high CL, but just something slightly more in-line with my salary so that if I do carry any type of reported balance (yet, still PIF during the end of grace period - always) that a posted UTL won't have such a negative impact on my score, as I've just rebuilt it and intend on continuing to rebuild it. ~FICO8 - 720:EX, 733:TU, 728:EQ