Need Advice

[Anonymous]

Hey,

I would like to apply for a new creditcard but i have a few questions. 

Question number one, I just bought a new car about a week ago (financed), how will this effect the process? Number two, My credit score is sitting right at about 675, it was in the 700's but my utilization is around 75% due to not having enough cards/lower limit, only 2k on a chase card. The main reason i would like to have another card/higher limit is because i tend to run quite a bit of money through the chase card with the 2k limit, it becomes a lot harder to keep the utilization low with only 2k. I do however pay atleast  $300-500 per month back to that card.

Question three, what is the best card to go with considering the score/utilization. (financia linfo below)

I make roughly $43,000 pre year. I am 24 years old. I have had 2 car loans, and 2 current credit cards. No negitive marks ext ext.

Any input would be greatly appreciated.

Thanks,

Jake

[Anonymous]

IF you can only pay $300/month on a card, don’t spend more than $300/month.

I would never app with high utilization as lenders either deny or give you tiny limit cards.

Considering paying all your cards below 28.9% and your overall utilization under 8.9% and get your scores up.

Seeking credit when you’re so underwater is risky!

[Anonymous]

First you should pay down your CC balances to at least lower than 30%, then don't use it until it's paid off. Once it's paid off, only use it if you can afford to pay it off that month. Finally, let your credit score recuperate a bit more before apping.

[HeavenOhio]

As mentioned, you'll want to lower your utilization before applying for anything new.

When a Chase card is your only card, it gets a little tricky. The deal with Chase is that they'll report zero whenever you pay to zero. All revolving accounts reporting zero will ding your score. To keep a positive balance reporting while avoiding interest, do this:

1. Before the statement cuts, pay your balance down to a desirable amount. The best thing is to pay it down 8.9% of your limit or below. If you can't do that, pay it down to 28.9% of your limit or below.
2. Charge something and let the transaction post. Then pay your statement balance in full. That'll prevent Chase from reporting zero.
3. Before the next statement cuts, repeat step 1.

The good news is they'll help you out, i.e. you don't have to wait a month to sort this out. Pay the card down to less than 8.9% of its limit. Then call them up and ask them to report your updated balance.

[Anonymous]

You could use a bigger limit to keep you uti down and get more flexibility. If you can keep your balances under control, but will frequently have a bit of a balance, you need to be very selective with cards you apply for. They should meet this criteria:
In no particular order:
1. Pre-approval in hand.
2. At least some type of 0% period.
3. Good chance to give a limit of 5k or more.
4. Decent rewards structure.

Don't apply for a bunch of cards at this point because you'll end up with a bunch of crap low limit cards and no progress on your scores. Apply for one card now, then another when the 0% expires.

Based on this criteria, I'd recommend the cap one qs, or venture due to the higher sl's, and maybe the Citi double cash.
Your on the border with qualifying for those cards, so only apply if you have a solid pre-approval. The double cash is the better card, but it's more likely to give you a tiny limit. The cap one cards will give you (I think) at least 3k for the QS and 5k for the venture. Only apply if you are pre approved.

Do not get carried away with any new limits, keep your spending under control, use these new lines for credit building only!
Good luck.

[marty56]

I would Garden for now.  As other have said since your score could go up well into the 700's if you pay down your balances based on what else is on your CR.  If you do that you will get better CLs.

[AverageJoesCredit]

You are in with Chase so that may end up well for you. Some who have used their card well get treated to auto cli so that may occur. You might also request a hp cli from Chase , where you arent apping a new card but growing current one. When you pay down the card, give a call and explain you need some more they might suprise you

[Gratitude]

I am applying for CSP & CFU any day now,  and I have balances on my two cards:

Merrick Bank Secured Visa will also ding your score if you've paid down to zero! Fixing it, my billing cycle ends on the 11th of the month, I had 8.9% on the 11th  balance  this month then and just sent a payment in full now ( 13th).. 

@HeavenOhio -  Rushing, I didn't follow the exact sequence you suggested - so  for the purposes of approval for Chase cards app & not to ding score again, what would be best: app with account "as is" before the payment posts, app after it posts or charge a transaction then app?   Also, when should I call Merrick  (give it a try) ask them to update report?  

Further, is it safe to say that its best to carry a balance under 9% whenever applying for new cards or lines of credit?

[HeavenOhio]

I thought the Chase card you mentioned was your only card. Ideally, one card reports a small balance (between $5 and 8.9% of its limit). Because Chase reports zero whenever you pay to zero, it's tough to get a Chase card to continuously report a positive balance. But since you have other cards, the simple thing is to let your Chase cards report zero and let some other card report the positive balance.

In order to get your utilization down before applying for anything, I'd pay the Chase card to zero as long as another card is currently reporting a balance. That would cause Chase to automatically report zero. If you make some small charges after that, that's OK.

If your other cards are currently at zero, pay Chase down to 8.9% or lower, then ask them to report the new balance. They'll do that if you ask. I don't know enough about Merrick to know if they'll report upon request or not.

[Gratitude]

HeavenOhio -Forgive me if I was confusing...

No. I do not yet have a Chase card (only a banking relationship with them for 7yrs). 

I am about to app for an installment loan (for a camper), and..

Not wanting to kill my Utl, I will simultaneouly app for 2 Chase cards (CFU & CSP) moments before.

Current account status

•  Merrick  Bank Secured -  paid down to zero bal today (not reported yet)
• BestBuy Visa - balance is 5.5% 

Question: Is BestBuy balance sufficently low for app or should I bring it down to zero for app then bring it and Merrick's balance back above zero before statment ends?

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FICO: EU 721    TU 746    EX 736

• Merrick Bank Secured Visa ($1500) - approved January 2016  
• BestBuy Visa ($3000) - approved April 2017