Is there a strategy on when to apply for credit?

[Anonymous]

I am new the credit board, so bear with me  I am trying to understand the best method for applying for cards to get a good mix and set a plan to get my scores higher.  

So for the past 3 years I have been rebuilding and waiting out stupid mistakes with credit cards. I check my scores on myfico and they were 728 Eq, 724 Ex, and 689 TU.  I have an AMEX charge off that will fall off my TU in December. I also have a paid and closed Discover that has lates from back in 2003.  I have a home loan, car note, and my Orchard Bank, care credit and student loans all paid on time.  No lates since 2003  

Last month I applied for a Macy's card, which is my first store card and was approved for $500.I plan on using it with Christmas coming, paying in full, and asking for a CLI in a couple of months. Yesterday I applied for and was approved for the Nordstrom Visa Signature card with a $10K limit, which I was very excited about!  I was researching and read that they do not report the credit limit, only the balance, but overall is a good card.

I would like to apply for another card,  because I  want one that reports the credit limit.  I also don't want to take a big hit by opening too many cards within a short time.  Should I wait to apply for another card for 6 months to a year so I don't ding my score too much?  I haven't gotten an alert for the new Nordstrom inq yet on myfico, so not sure what that will do to my scores.  I REALLY want to hold on to my 700s scores since they are so new and try and get TU up there too.  Is there a golden rule on when and how to apply for credit?

Lastly, in my situation, if I do apply either now or later, what is a good card for me that offers decent rewards and credit limits? 

Sorry so long.  Let me know if you need any other info. Thank you.

Message Edited by FutureMrsL on 11-06-2008 10:02 PM

[Anonymous]

i would go for a third(chase freedom maybe?) and then chill for 6 months.

[Anonymous]

Thanks for the info.  Which CR does Chase pull?  Does it matter to apply before the visa signature reports or is it better to apply after it begins to report?

Message Edited by FutureMrsL on 11-06-2008 11:01 PM

[Anonymous]

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@Anonymous wrote:
Thanks for the info.  Which CR does Chase pull?  Does it matter to apply before the visa signature reports or is it better to apply after it begins to report?

Message Edited by FutureMrsL on 11-06-2008 11:01 PM

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yes i would   they pull eq here in ala

[jmbfl]

Anticipate a FICO decrease if you do that. This will be your third new account in less that one year if I read correctly. You also have higher scores and higher scores tend to be effected more by negative actions than lower scores.

[Anonymous]

Ok, thanks for the info,  So having 3 new accounts in less than a year is seen as negative to FICO?Good to know!   What kind of drop could I expect, and how long would it take to recover?  How long should pass before I open another account?  6 months or would a year be better?

[GFer]

My experience has been that after 3 or 4, the damage is less and less. If you really want to, I'd go for one more as most to the damage has already been done.

You'll 'start' gaining your points back around 6 months.

[Anonymous]

I have 40+ TLs (but only 6 were open accounts - the rest are mostly paid student loans, with a few closed credits in good standing), so my oldest (tho closed) account is 22 yrs and my average age was 7. 

Looking ahead at my credit needs, I decided to app for three new cards, and did them all within a week, knowing I'd take the score hit (which I have, but don't pull FICOs again til end of Jan).   But the hits due to the three inqs will all fall off at the same time next year, and the new accounts hit would gradually improve over the same time period (my AAoA only fell by about 4 months).   I won't need credit til 2010, so my scores should be back by then.

Without my deep credit file and high FICOs tho, I wouldn't have app'ed for all three at the same time.  Every six months is probably the best strategy (whether approved or denied, I would assume) if you are building up your credit.