@JayTea7 wrote:Hello everyone! We're curious about when I should open a new card. The current balance is $4k (discover it card CB). We're paying $3.5k on it next week. The statement due date is the 8th. We're looking to open another card but not sure as to when we should.
Is it better to pay the entire balance then let it cycle and then open a card?
...or is it better to pay the $3.5k and leave a small balance on it then let it cycle and apply?
Current FICO(from discover) credit score is 669. We're hoping the score goes up and opens doors. We did get a new credit card from Ally(only a $300 CL which I believe is from the utilization) last month. Does that affect us negatively?
Capital One keeps sending pre approval letters. Our car loan is through capital one as well.
Thanks in advance!
ideally, you are reporting a small balance on one card ~$20 or no more than 5% of the credit limit
that would be the best time to apply
applying when you are reporting a balance of $4,000 isn't a good idea, particularly if you've been holding onto that balance for awhile now
you are hurt slightly from having the new account, moreso if it has reported already, hopefully you can get that balance down and reported prior to your ally card reporting
@JayTea7 wrote:I keep receiving prescreened offers from American Express for the blue cash back card.
I tried the online pre approval and they denied me. What's the point of telling me I'm prescreened by mail and denied online?
you can still be approved while being denied by the pre-approval tool, the mailer and the pre-approval tool don't use the same underwriting as the actual underwriting approval process
if you are interested in an Amex card, I would apply directly for the card you want after Discover reports your new low balance. If you're not approved, you credit won't be hard pulled as long as it has the 'won't impact your credit score' language in the application.
@JayTea7 wrote:Great, thank you!
I apologize for so many questions but I have another.
So the discover card we have been talking about is my wife's. I have a discover it secured card. She doesn't enjoy the credit game as much as me lol.
My credit is 771 according to MF. I can't get approved for anything due to limited credit history and I have been keeping the balances at $0. I guess I need to use it more and let is cycle. I do not have any derogatory marks.
Would it be wise for my wife to add me as an authorized user? She did in the past but I had myself removed. Did to utilization.
how long have you had the discover it secured card? is that the only account you have?
If you want to hurry up and get to at least 3 revolvers and an installment loan, and find that you keep getting denied for prime cards, even with an excellent score, due to a limited credit history, look into grabbing up either another secured card or maybe a CU credit card, as some of them tend to be more forgiving and easier to give you a chance.
Basic fundamentals dictate that to maximize your score before apping, you should be start practicing AZEO a couple statements prior to "put your best foot forward" in terms of the credit profile/score. You may want to refrain from requesting credit while your profile is, quite literally, saying that you do not use any at all.
If you have no installment loans at all reporting, look into the SSL technique.
@JayTea7 wrote:Hello everyone! We're curious about when I should open a new card. The current balance is $4k (discover it card CB). We're paying $3.5k on it next week. The statement due date is the 8th. We're looking to open another card but not sure as to when we should.
Is it better to pay the entire balance then let it cycle and then open a card?
...or is it better to pay the $3.5k and leave a small balance on it then let it cycle and apply?
Current FICO(from discover) credit score is 669. We're hoping the score goes up and opens doors. We did get a new credit card from Ally(only a $300 CL which I believe is from the utilization) last month. Does that affect us negatively?
Capital One keeps sending pre approval letters. Our car loan is through capital one as well.
Thanks in advance!
It's best to apply when your utilization is low.
It's better to have one card report a small balance, than to have both cards report zero balances.
