What CC to Apply? FICO - EX 721, EQ 707, TU 714 (INQ 12MO: EX 0; EQ 1; TU 1)

[Anonymous]

So my DW is looking to establish some additional credit. We obviously beleive the grocery and rewards would be huge and would like to add something with low interest. Something that will grow with us. What are you thoughts based on these stats? I was think Amex BCE, 1 from Navy and 1 Chase. Maybe do 2 now and 1 later? Thoughts? 
 
Revolving - 
Cap 1 Journey - $8500 SL; 24% Utilzation hasn't posted yet. She was carrying 76% until I found out about this. Her score should go up any day now. It reported on the 18th(will be 0% next month) 2 years 3 months
 
Installment -
Auto Loan - perfect payment history; 1 year 4 months
Student Loan - perfect payment history; 3 years 8 months
No baddies  
 
AOOA 3.7 yrs
AAOA 2.4 yrs

[Medic981]

My best advice is to research the cards that are out there and find the ones that you think you can benefit from the most. There is no end all be all cards that I am aware of. Each CC has its pros and cons and only you and your DW can decide which one is right for you.

[Anonymous]

Thanks Medic - I know what you mean. My concern is that I guide her to the wrong card and she receives a denial. I feel like she's already nervous about it. I think Navy is our safest best to start since my terrible score got approved.  Then maybe milk that for 6 months and go after another. 

Also I want her utilization to report the 24% first. I think after I get it to 0% we go for Chase and then Amex.

[Anonymous]

Also what kind of point increase do you think we can expect getting her Utilization down to 24%??? That what has my interst peaked. Maybe to the 750's? 

[Anonymous]

So she's got exactly 1 revolver that will be moving from 76% utilization to 24% utilization? 

If that's the case, 3 thresholds would be crossed at 68.9%, 48.9% and 28.9% on both aggregate and individual card utilization.  My guess would be about 15 points per threshold for aggregate (45 points) and another 8-10 for highest individual utilization card.  Basically, a 53-55 point gain is what I would ballpark here... which easily takes her into the range of being able to get approved for just about anything.

[Anonymous]

That is correct BBS and thank you for your feedback. I guess 50 points - so I was close! 😂Which lender do you think gives us the best shot at a high starting SL? I’m thinking Navy from my research.

[Anonymous]

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@Anonymous wrote:
That is correct BBS and thank you for your feedback. I guess 50 points - so I was close! 😂Which lender do you think gives us the best shot at a high starting SL? I’m thinking Navy from my research.

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Well, definitely not Chase, Citi or Discover.  I don't know much about Navy, but have heard good things.  BoA could be an option and they can grow quickly.  Your original mention of Amex isn't a bad idea.  They'd likely throw a SL of $10k (give or take) which of course at 61+ days could be ~$30k with their 3X CLI potential.  I think it would be next to impossible of not impossible all together to have a $30k or so limit with any other lender within 3 months of now.

[Anonymous]

You mention (a) wanting "low" annual fees and (b) planning to bring her utilization to 0%.

(a) I would aim for no annual fees, rather than low. 

(b) You do not want her utilization to be 0%, which would be a $0 balance.  Make sure she has one card reporting at least a $5 every month.  A 0% utilization will cause her to take a 20 point penalty.

You mention a special interest in groceries and in broadening the number of cards she has.  A nice option would be to the Chase Freedom now (5% groceries Jan-Mar) the Discover in March (5% groceries April-June) and the Amex BCE in June (3% groceries July-Dec).  The Freedom and Discover would also give her 5% on gas in other quarters.

[Anonymous]

Ha! Sorry about that meant low interest. Thank you for the reply. So many options out there that it can be overwhelming. We will look into those cards! Sounds like you’ve got it down! 😃

[Gmood1]

Navy Fed is a pretty safe bet. Amex is another great issuer! Penfed would be another great option. That's one pull per CB.

All three have become rock solid for me over the last 3 years.

BOfA Cash rewards is a grower. The high redemption rate is what I don't like about their cards. Other than that, not much to complain about.