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Next new credit card?

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coldfusion
Community Leader
Mega Contributor

Re: Next new credit card?

OP, did you burn either AMEX or Chase? Regardless, you should plan on sitting on your hands for the next 6 months and spend the time planning your next move.  Given the $500 CLI and the denial you're almost certainly at the limit that NFCU is willing to extend to you right now so that's a bear you won't want to poke again for a while. 

 

My first thought is that after 6 months see if you can get a preapproval for an AMEX Cash Magnet or Chase Freedom Unlimited card but that's without knowing on whether or not you had burned either or both of them. Normally I'd say look at the AMEX Blue Cash Everyday but your More Rewards card makes that card redundant. 

 

Seriously consider cutting the Credit One card loose at some point after you get your next card.  

 

 

 

(3/2024)
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Artist formerly known as the_old_curmudgeon who was formerly known as coldfusion
Message 11 of 21
Red1Blue
Super Contributor

Re: Next new credit card?


@coldfusion wrote:

My first thought is that after 6 months see if you can get a preapproval for an AMEX Cash Magnet or Chase Freedom Unlimited card but that's without knowing on whether or not you had burned either or both of them. Normally I'd say look at the AMEX Blue Cash Everyday but your More Rewards card makes that card redundant. 


Just last week Amex announced they are no longer accepting applications for new credit cards due to the down turn in economy.

Message 12 of 21
Anonymous
Not applicable

Re: Next new credit card?


@Red1Blue wrote:

@coldfusion wrote:

My first thought is that after 6 months see if you can get a preapproval for an AMEX Cash Magnet or Chase Freedom Unlimited card but that's without knowing on whether or not you had burned either or both of them. Normally I'd say look at the AMEX Blue Cash Everyday but your More Rewards card makes that card redundant. 


Just last week Amex announced they are no longer accepting applications for new credit cards due to the down turn in economy.


I'm pretty sure this is... not true? I was literally approved for a brand-new BCP last week with no prior AMEX relationship.

 

There was a news article that reported AMEX was clamping down on their standards for new approvals, but that's a far cry from "Amex announced they are no longer accepting applications for new credit cards".

Message 13 of 21
Anonymous
Not applicable

Re: Next new credit card?

Two thoughts, related to what others have posted:

 

1. Which, if any, credit card lenders did/do you have collections from?  Any closed collections that you settled for less than the original amount owed?  Some lenders are more forgiving than others, so knowing which lenders you let fall to collections in the past will help us recommend things.

 

2. Have you tried any pre-qualification tools?  Some are better/more reliable than others, but the Amex one, for example, is usually extremely reliable.  Give that a shot and see if it recommends anything for you.  Something like a Cash Magnet might be good for your profile at this point, and it's always a good idea to get in with Amex since they usually provide easy CLIs and SP approvals once you have one of their cards.  The one caveat with Amex is, once you've burned them, it's very hard to get back in, so if that was one of your collections then it's likely not a viable option. 

 

If you do try it, please let us know what it recommends for you, as their underwriting standards can be similar between cards so pre-approval for one card can mean likely approval for some specific others.

 

Amex prequal page: https://www.americanexpress.com/us/credit-cards/check-for-offers/?inav=menu_cards_prequal_offer 

Message 14 of 21
AverageJoesCredit
Legendary Contributor

Re: Next new credit card?


@Red1Blue wrote:

@coldfusion wrote:

My first thought is that after 6 months see if you can get a preapproval for an AMEX Cash Magnet or Chase Freedom Unlimited card but that's without knowing on whether or not you had burned either or both of them. Normally I'd say look at the AMEX Blue Cash Everyday but your More Rewards card makes that card redundant. 


Just last week Amex announced they are no longer accepting applications for new credit cards due to the down turn in economy.


Can you share link. Thats pretty big news and i would be shocked no one has mentioned this on the credit card forum . Thanks 

Message 15 of 21
Anonymous
Not applicable

Re: Next new credit card?

Teach me the way! (Average Joe) Im almost done paying off my credit card all together and I want to submerge myself in this game.

Message 16 of 21
Anonymous
Not applicable

Re: Next new credit card?


@Anonymous wrote:

Two thoughts, related to what others have posted:

 

1. Which, if any, credit card lenders did/do you have collections from?  Any closed collections that you settled for less than the original amount owed?  Some lenders are more forgiving than others, so knowing which lenders you let fall to collections in the past will help us recommend things.

 

2. Have you tried any pre-qualification tools?  Some are better/more reliable than others, but the Amex one, for example, is usually extremely reliable.  Give that a shot and see if it recommends anything for you.  Something like a Cash Magnet might be good for your profile at this point, and it's always a good idea to get in with Amex since they usually provide easy CLIs and SP approvals once you have one of their cards.  The one caveat with Amex is, once you've burned them, it's very hard to get back in, so if that was one of your collections then it's likely not a viable option. 

 

If you do try it, please let us know what it recommends for you, as their underwriting standards can be similar between cards so pre-approval for one card can mean likely approval for some specific others.

 

Amex prequal page: https://www.americanexpress.com/us/credit-cards/check-for-offers/?inav=menu_cards_prequal_offer 


I have been looking for the creditor information through credit karma and they have none listed. I finally tracked them down though through Experian's site so I'm going to call and see if they will settle. I have 3 for medical bills all under 1000. I've considered paying them off but I've been holding on to savings just in case something happens.

Message 17 of 21
Anonymous
Not applicable

Re: Next new credit card?

Ok, medical collections shouldn't have a special impact on card issuers beyond the normal credit file impact of collections in general. The main thing is that some issuers (particularly Amex and Chase, but others like Barclays as well) will blacklist you if they take a loss as a result of sending your outstanding debt to collections. Those blacklists will result in denials due to previous unsatisfactory relationships with the specific lender, so they're a bigger problem for credit card apps.

 

On the CC front, another potential option to try prequal for is Cap One - something like a Savor or QS might also be a good fit for you, though the utility of the Savor over your existing NFCU card is debatable. Citi isn't doing prequals right now, or the Double Cash may be a good one. Maybe the PayPal MC is worth a look as well? Synchrony has been cutting big unused lines right now, but that wouldn't impact you.

 

If you don't get a prequal from any lenders, then maybe chill for a bit and try to get those medical collections cleared out now that you have the creditor info. Between the state of the world right now and the potential gain after you do that, it may be a good time to keep your powder dry and rest with your Discover It and NFCU More Rewards cards for a bit while you work them out.

 

EDIT TO ADD: Who do you bank with? Sometimes banks will approve cards for their clients even if they otherwise would've denied them. That could open the door to better products within your bank, depending on which bank that is.

Message 18 of 21
Remedios
Credit Mentor

Re: Next new credit card?


@Anonymous wrote:

Ok, medical collections shouldn't have a special impact on card issuers beyond the normal credit file impact of collections in general. The main thing is that some issuers (particularly Amex and Chase, but others like Barclays as well) will blacklist you if they take a loss as a result of sending your outstanding debt to collections. Those blacklists will result in denials due to previous unsatisfactory relationships with the specific lender, so they're a bigger problem for credit card apps.

 

On the CC front, another potential option to try prequal for is Cap One - something like a Savor or QS might also be a good fit for you, though the utility of the Savor over your existing NFCU card is debatable. Citi isn't doing prequals right now, or the Double Cash may be a good one. Maybe the PayPal MC is worth a look as well? Synchrony has been cutting big unused lines right now, but that wouldn't impact you.

 

If you don't get a prequal from any lenders, then maybe chill for a bit and try to get those medical collections cleared out now that you have the creditor info. Between the state of the world right now and the potential gain after you do that, it may be a good time to keep your powder dry and rest with your Discover It and NFCU More Rewards cards for a bit while you work them out.


A collection is a collection regardless of origin. 

Most approvals/denials are automated, and computer doesnt care how it happened, only that it happened. 

 

Message 19 of 21
K-in-Boston
Credit Mentor

Re: Next new credit card?


@AverageJoesCredit wrote:

@Red1Blue wrote:

@coldfusion wrote:

My first thought is that after 6 months see if you can get a preapproval for an AMEX Cash Magnet or Chase Freedom Unlimited card but that's without knowing on whether or not you had burned either or both of them. Normally I'd say look at the AMEX Blue Cash Everyday but your More Rewards card makes that card redundant. 


Just last week Amex announced they are no longer accepting applications for new credit cards due to the down turn in economy.


Can you share link. Thats pretty big news and i would be shocked no one has mentioned this on the credit card forum . Thanks 


Using Google Translate on the article from English to myFICO:

 

English - "The firm has pulled back on adding new credit-card customers because it can’t get a clear picture of consumers’ financial health and employment trends."

 

myFICO - "No one will ever be approved for Amex cards again.  Anyone with existing cards should expect their cards to be closed in the next 24-36 hours. Because coronavirus.  Ignore any Amex approval posts here."

 

Underwriting may tighten up.  They may not be sending marketing in the mail as much as they were.  But they are definitely still accepting and approving applications.

Message 20 of 21
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