Looking for second CC - need help

[Anonymous]

**EDITED FOR FORMATTING**

Hello myFICO!

I've recently been considering picking up a new credit card but it will only be my second card ever. Browsing around the past few days I can tell you guys like as much detail as possible, so I'll try and give as much as I can think to remember.

Background:
Like I said earlier, I only have 1 CC (BoA) which I've had for almost 7 years according to CreditKarma (all numbers will be drawn from here) but I recently started thinking another CC may be good for my file. For the life of the card I've never had a late payment and I've never had any collections, bankruptcies, liens, etc etc.  I know I'm usually on the better end of the score spectrum, so I don't do any hard pulls but I did notice 2 queries pulled last year by Verizon and what looks to my leasing office on my Equifax report (right around the time I was moving, so I guess that makes sense). I also have an auto loan that's 3 years old. The loan was for 40k (I know, I know...) - came with a good rate from my credit union, never missed a payment, overpay each month and it's down to ~15k. There was also a student loan that was closed in good standing a few years ago.

The only "negative" that I see on my file is my CC utilization with is at 42% but should be down to ~30% by next billing cycle. I think the card initially came with a 1 or 2k limit but has been auto increased several times over the years to now be a 6k limit. According to CK my Equifax score is 748 and my TransUnion is 749 (I've picked up that these aren't "real" scores but estimates).

TL;DR-
- 3 total accounts: 1 CC, 1 auto, 1 closed student loan
- Average account age: 5 years
- Oldest account age: Almost 7 years
- Hard pulls (??): 2 from a year ago when I moved
- No negative marks
- 40k auto loan in good standing
- CreditKarma score: 748 EQ, 749 TU


What I'm looking for:
I initially wanted a new card with a higher limit. I don't ever plan for life to get rough, but things happen I guess. So maybe somewhere between 10-15k? I value "ease of life" (I have enough accounts and log ins already) so I initially was going to open a card at one of my banks (BoA, PenFed, USAA) and figured I may as well get some rewards out of them but they didn't offer anything really exciting. Over the past few days I've moved from a few different categories but I'm in a cash back hybrid category of sorts now - more on that in a minute.

I want something easy to use to reap rewards. I heard about the Sapphire Preferred and thought it sounded awesome, but then to REALLY earn every penny you have to transfer those points to airlines and book through them. Not to mention pairing it with the Freedom for extra points that transfer and yada yada yada. Sure I could take the time to do that, but it's more hassle than it's worth to me. While some of the rotating 5X cards looked appealing, I knew I would never be able to keep up with what month had what and I only regularly shopped in those 5X categories twice a year (depending on the card). Again, good, but probably more than it's worth to me.

Lastly, I want an every day card. Much like the last paragraph, I value stacking rewards easily. There are people much better at staying on top of which card does what and when to use certain cards than I. I'm a realist - while earning every last point possible and flipping that into every reward possible, I know I won't keep up with all of that in the long haul. I want 1, MAYBE 2 cards to keep me going (maybe 1 rewards/everyday card and 1 "oh s***" card when life happens)


What I think I've narrowed it down to:
1) Barclaycard Arrival Plus
I'll be honest, this card wasn't even on my radar until a coworker mentioned he had it and loved it. The 2% earnings on all purchases sounds nice and the 40,000 bonus miles is an added plus. Now the only things that have me second guessing this card is a) 3k in 3 months and b) annual fees. Now 3k in 3 months isn't anything too terrible as I could move some expenses to the card for 3 months just to hit the cap (or all my expenses and stop using my debit card) but B has me thinking. The annual $90 fee makes me a sad panda. I've read people being able to have the fee waived additional years after the first but that's not guaranteed.

Also, I'm not a traveler (yet) but that was mainly being due to having high CC utilization. Now that my CC is under control and should be paid off soon, opens the possibility of traveling. What better way to celebrate being able to travel again than by having enough points to get a free flight? Realistically I could see myself doing 1-3 trips a year with maybe one of those being international. I also like how you can pay for a flight, hotel or whatever with the card and basically have it removed. Super simple! I've seen post that say "you need to spend 40k to have this card edges out others". I'll be honest, I don't see myself doing 40k in CC usage every year but the card seems quite good and hits that sweet spot of perks I'm looking to take advantage of.


2) Citi Double Cash
This was actually the first card I saw and liked after I widened the scope of what I was looking for. 2X / 2% seems to the high bar for flat rewards earning on cards, so that was a plus. Also the fact that there is no annual fee was something I liked as well. There really isn't much to say about this card - it seems to be a work horse if you use it for everything, which is good since I'm more concerned with the longevity of my credit cards (don't see myself turning and burning). Only question I couldn't find an answer to, was if the cash back expired and/or what options there were to redeem it (credit statement redemptions aren't high on my list for getting real cash back)

I THINK I'll be approved for either one but I'm not 100% sure. The fact I only have 1 card at 40%, while taking good chunks off each month, may hurt my chances. The only problem I could see is having a lower credit limit on the cards. Like I mentioned, I'd rather it be on the higher side but I don't know how all this stuff works.

So what do you think? Do you think it's possible? Should I lower my expectations? Should I be looking into other cards? I should also note that I'm not hard pressed on getting a card right this second. I was knocking out a few other life tasks and this came to mind but I could clearly apply for these in a few months.

Thanks for checking this out! Hopefully it's enough info to help figure where to go next.

[wmweeza]

Holy wall of text...broke it up into paragraphs a bit

QUOTE:

Hello myFICO! I've recently been considering picking up a new credit card but it will only be my second card ever. Browsing around the past few days I can tell you guys like as much detail as possible, so I'll try and give as much as I can think to remember. Background: Like I said earlier, I only have 1 CC (BoA) which I've had for almost 7 years according to CreditKarma (all numbers will be drawn from here) but I recently started thinking another CC may be good for my file. For the life of the card I've never had a late payment and I've never had any collections, bankruptcies, liens, etc etc.

 I know I'm usually on the better end of the score spectrum, so I don't do any hard pulls but I did notice 2 queries pulled last year by Verizon and what looks to my leasing office on my Equifax report (right around the time I was moving, so I guess that makes sense). I also have an auto loan that's 3 years old. The loan was for 40k (I know, I know...) - came with a good rate from my credit union, never missed a payment, overpay each month and it's down to ~15k. There was also a student loan that was closed in good standing a few years ago.

The only "negative" that I see on my file is my CC utilization with is at 42% but should be down to ~30% by next billing cycle. I think the card initially came with a 1 or 2k limit but has been auto increased several times over the years to now be a 6k limit. According to CK my Equifax score is 748 and my TransUnion is 749 (I've picked up that these aren't "real" scores but estimates). TL;DR- - 3 total accounts: 1 CC, 1 auto, 1 closed student loan - Average account age: 5 years - Oldest account age: Almost 7 years - Hard pulls (??): 2 from a year ago when I moved - No negative marks - 40k auto loan in good standing - CreditKarma score: 748 EQ, 749 TU What I'm looking for: I initially wanted a new card with a higher limit. I don't ever plan for life to get rough, but things happen I guess. So maybe somewhere between 10-15k? I value "ease of life" (I have enough accounts and log ins already) so I initially was going to open a card at one of my banks (BoA, PenFed, USAA) and figured I may as well get some rewards out of them but they didn't offer anything really exciting. Over the past few days I've moved from a few different categories but I'm in a cash back hybrid category of sorts now - more on that in a minute. I want something easy to use to reap rewards.

I'd apply at about 10%

I heard about the Sapphire Preferred and thought it sounded awesome, but then to REALLY earn every penny you have to transfer those points to airlines and book through them. Not to mention pairing it with the Freedom for extra points that transfer and yada yada yada. Sure I could take the time to do that, but it's more hassle than it's worth to me. While some of the rotating 5X cards looked appealing, I knew I would never be able to keep up with what month had what and I only regularly shopped in those 5X categories twice a year (depending on the card). Again, good, but probably more than it's worth to me. Lastly, I want an every day card. Much like the last paragraph, I value stacking rewards easily. There are people much better at staying on top of which card does what and when to use certain cards than I. I'm a realist - while earning every last point possible and flipping that into every reward possible, I know I won't keep up with all of that in the long haul. I want 1, MAYBE 2 cards to keep me going (maybe 1 rewards/everyday card and 1 "oh s***" card when life happens)

 What I think I've narrowed it down to: 1) Barclaycard Arrival Plus I'll be honest, this card wasn't even on my radar until a coworker mentioned he had it and loved it. The 2% earnings on all purchases sounds nice and the 40,000 bonus miles is an added plus. Now the only things that have me second guessing this card is a) 3k in 3 months and b) annual fees. Now 3k in 3 months isn't anything too terrible as I could move some expenses to the card for 3 months just to hit the cap (or all my expenses and stop using my debit card) but B has me thinking. The annual $90 fee makes me a sad panda. I've read people being able to have the fee waived additional years after the first but that's not guaranteed. Also, I'm not a traveler (yet) but that was mainly being due to having high CC utilization. Now that my CC is under control and should be paid off soon, opens the possibility of traveling. What better way to celebrate being able to travel again than by having enough points to get a free flight? Realistically I could see myself doing 1-3 trips a year with maybe one of those being international. I also like how you can pay for a flight, hotel or whatever with the card and basically have it removed. Super simple! I've seen post that say "you need to spend 40k to have this card edges out others". I'll be honest, I don't see myself doing 40k in CC usage every year but the card seems quite good and hits that sweet spot of perks I'm looking to take advantage of. 2) Citi Double Cash This was actually the first card I saw and liked after I widened the scope of what I was looking for. 2X / 2% seems to the high bar for flat rewards earning on cards, so that was a plus. Also the fact that there is no annual fee was something I liked as well. There really isn't much to say about this card - it seems to be a work horse if you use it for everything, which is good since I'm more concerned with the longevity of my credit cards (don't see myself turning and burning).

Only question I couldn't find an answer to, was if the cash back expired and/or what options there were to redeem it (credit statement redemptions aren't high on my list for getting real cash back) I THINK I'll be approved for either one but I'm not 100% sure. The fact I only have 1 card at 40%, while taking good chunks off each month, may hurt my chances. The only problem I could see is having a lower credit limit on the cards. Like I mentioned, I'd rather it be on the higher side but I don't know how all this stuff works.

 So what do you think? Do you think it's possible? Should I lower my expectations? Should I be looking into other cards? I should also note that I'm not hard pressed on getting a card right this second. I was knocking out a few other life tasks and this came to mind but I could clearly apply for these in a few months. Thanks for checking this out! Hopefully it's enough info to help figure where to go next.

[wmweeza]

Hope you don't mind me breaking up your post. I'd say go for Citi since you want a no AF card

[Anonymous]

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@wmweeza wrote:

Hope you don't mind me breaking up your post. I'd say go for Citi since you want a no AF card

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No no no, that's fine. I spaced it out when I wrote it but I guess for some reason it didn't actually break it when I hit submit. I'll see if I can edit it, but you were pretty close to what I had haha.

**Edit: Done. Hopefully that's cleaner and easier to read/understand. Not sure what happened there

[Anonymous]

If you want to get a card with a high limit you need to get your utilization down. 

Get it to 10% or less and then apply. Considering you have a high AAoA and an instalment loan, your FICO will be very high. 

The Double Cash seems like it will serve you well. 

One last note: consider applying for a third card although you don't want one. It is supposedly good for your FICO also. If you don't want to complicate your life by juggling multiple cards for rewards, get a PenFed Promise Visa - which has no BT fees and low interest - and keep it there for emergencies if you ever need to float a balance 

[Anonymous]

You would definitely be approved for either one or both of those cards if you applied. You have a nice clean credit history and average age of accounts being five years is pretty good too.

The only reason I think you may not get over a $10,000 starting limit is because you don't have a credit card that high yet. "High limits beget high limits" and all...

- Go with the Arrival+ if you need a card with no Foreign Transaction fees. The annual fee after the first year is a bummer but the 40,000 bonus miles is pretty sweet.
- Go with the DoubleCash if you are really oppsed to the annual fee and you already have a card that has no FTF that you can use while traveling internationally

If you want a card that (in my opinion) meets in the middle of the Arrival+ and DoubleCash then go with the CapitalOne Quicksilver. I love my QS:
1.5% cash back on everything
No Annual Fee
No Foreign Transaction Fees
Usually give out high starting limits
Rewards add up fast if you use as your go-to card and they show up as soon as a transaction is posted and you can redeem for a check, statement credit, gift card, donation, etc. Very easy. Only con (in my eyes) would be that Capital One triple-pulls when you app for a new card. But the rest of your CLI's can be soft pulls via online luv-button every 6 months.

Lots of people hate on CapitalOne but they have been really great to me.

[Anonymous]

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@Anonymous wrote:

If you want to get a card with a high limit you need to get your utilization down. 

Get it to 10% or less and then apply. Considering you have a high AAoA and an instalment loan, your FICO will be very high. 

The Double Cash seems like it will serve you well. 

One last note: consider applying for a third card although you don't want one. It is supposedly good for your FICO also. If you don't want to complicate your life by juggling multiple cards for rewards, get a PenFed Promise Visa - which has no BT fees and low interest - and keep it there for emergencies if you ever need to float a balance 

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Hmmm, that PenFed Promise looks pretty nice, especially seeing other people's post about it. My auto loan is through PenFed, so maybe that could help if I applied for it (3 years of good standing)?

I like that suggestion for the Promise, so thank you. Would it be wise to get that one first then wait a little bit longer for one of the other two, or flip that (one of the two first, then PenFed later)? I'll probably wait until this fall to pull the trigger - my utilization should be much lower then.

[Anonymous]

So I went and did some research, so hopefully this looks correct:

Arrival+ == MasterCard World Elite -> NPSL

Double Cash == MasterCard World -> NPSL (??)

PenFed Promise == Visa Platinum -> hard credit limit

CapitalOne QuickSilver == Visa (no idea on category or how the credit line works)

If I read correctly, a NPSL card typically uses your highest balance as a "credit limit" which is what they report, thus how lenders see utilization. In terms of looking good to lenders, wouldn't a credit limit look better than not having one?

Also, do you have to pay the balance off in full each month for a NPSL card? I plan to do this but if I splurge a little and carry a balance, would that look bad?

Lastly, do people think the Double Cash will stay at 2%? Not sure if other cards have lowered their cash back rewards but looks like Citi regularly phases out cards for newer ones (sometimes not as good)? Sorry for all the questions, I'm new to this and it feels like I'm playing a game of Texas Hold'em in Vegas with the house always winning haha.

[Anonymous]

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@Anonymous wrote:

So I went and did some research, so hopefully this looks correct:

Arrival+ == MasterCard World Elite -> NPSL

Double Cash == MasterCard World -> NPSL (??)

PenFed Promise == Visa Platinum -> hard credit limit

CapitalOne QuickSilver == Visa (no idea on category or how the credit line works)

If I read correctly, a NPSL card typically uses your highest balance as a "credit limit" which is what they report, thus how lenders see utilization. In terms of looking good to lenders, wouldn't a credit limit look better than not having one?

Also, do you have to pay the balance off in full each month for a NPSL card? I plan to do this but if I splurge a little and carry a balance, would that look bad?

Lastly, do people think the Double Cash will stay at 2%? Not sure if other cards have lowered their cash back rewards but looks like Citi regularly phases out cards for newer ones (sometimes not as good)? Sorry for all the questions, I'm new to this and it feels like I'm playing a game of Texas Hold'em in Vegas with the house always winning haha.

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That's not how it works anymore.  NPSL reports your credit limit as it's limit.  As far as the Double Cash staying, no one really knows.  There's a possiblity that it stays, or the rewards get nerfed, or the card is discontinued an existing members can keep it.  For all intents and purposes, it looks like the card will stay as is for the time being.

[peaceonearth]

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@wmweeza wrote:

Hope you don't mind me breaking up your post. I'd say go for Citi since you want a no AF card

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Thank you for taking the time to format the OP's Text.