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Good news: GOT APPROVED, Not-so-good news: Very Low Limit

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Established Member

Good news: GOT APPROVED, Not-so-good news: Very Low Limit

Hi everyone. A little background first... I’m new to the forum, and new to relatively new to understanding credit scores, credit bureaus, personal finance and credit cards in general. Iw began strategically applying for certain credit cards for their rewards in May 2018. In the beginning my FICO 8 was approx 560 (avg for all three bureaus). Today my FICO 8 is approx 680 (avg for all three bureaus), with a 16% Util. My wife and I plan on buying our first home sometime in Jan-Mar 2021.

I have 6 CC’s and 1 installment loan on my credit (I also have 3 cards that I am an AU on that total $47K with below 10% Util). The order that I applied for them was: Cap 1 Plat ($500), Discover it ($1700), Citi Double Cash ($1500), BOA Cash Rewards Mastercard (joint account $10,000), Chase Freedom Unlimited ($8,900), and lastly TODAY was the Amex Blue Cash Preferred ($1,000).

I’m very grateful for the cards that I’ve been approved for thus far, especially the CFU. I’m also very thankful that today I got approved for the Amex card, and am now in their ecosystem as well. But I just wish the CL on the Amex card was at least $5K or so.

So with all that being said, is there any advice you guys can offer on what steps to take next in my credit building journey? How long do you think it will take for the Amex to credit limit increase to something more substantial? Maybe I should just sit tight and don’t apply for anything until June 2020?

I’m trying to position myself to have around $60K in available credit (currently at $23.6K) from major banks within the next 12 months.

Sorry for the somewhat lengthy post while I try to figure all of this stuff out.





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Moderator

Re: Good news: GOT APPROVED, Not-so-good news: Very Low Limit

Hi and welcome to the forums 

 

You kinda answered your own question. If by  "credit building journey" you mean increase in scores and better approvals, especially if mortgage is the end game, you have to stop applying. 

Your low SL with Amex is probably result of recent activity (credit seeking behavior) and delinquencies (if any) present on your CR.

If all those apps are from May to now, it's time you lay really low for really long time. 

It's not  a good idea to include Chase cards in app sprees. They can get a little bit neurotic after the approval. Again, do nothing for a while. 

 

If you have any derogs, you can work on those. Work on SUBs. Enjoy your cards. Just dont apply or ask for HP increases till the dust settles. 

 

Congrats on all your progress so far 

 

Message 2 of 8
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Established Contributor

Re: Good news: GOT APPROVED, Not-so-good news: Very Low Limit

Message 3 of 8
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Established Member

Re: Good news: GOT APPROVED, Not-so-good news: Very Low Limit

Thanks a lot for the advice! I will do just that - lay low.





Message 4 of 8
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Established Contributor

Re: Good news: GOT APPROVED, Not-so-good news: Very Low Limit


@Remedios wrote:

If all those apps are from May to now, it's time you lay really low for really long time. 


May '18 is when he says he started; he may not need to lay that low if his apps have been spread out over the year

 

OP, I would still review the Amex 3X CLI thread to learn about how Amex gives CLIs & any opportunities you may have. GL!







Message 5 of 8
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Regular Contributor

Re: Good news: GOT APPROVED, Not-so-good news: Very Low Limit

The others have given great advise.

 

I would also suggest trying for prequalifications and preapprovals instead of just blindly applying. That way you can see all of the cards you are 

prequalified for and you can choose the best SUB based on what is available to you. The Cap One Platinum can probably upgraded to a much better card now. https://verified.capitalone.com/sic-ui/#/esignin?Product=Card&Action=ProductUpgrade  This link will show the available upgrades.

Starting CK FAKOS 6/28/2018
TU 503
EQ 498
Discover EX 537

FICO Score 8 7/7/2018
EX 557
TU 566
EQ 514

Current FICO Score 8 as of 6/29/2019
EX 653
TU 652
EQ 611

Goal Score 675
Message 6 of 8
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Established Member

Re: Good news: GOT APPROVED, Not-so-good news: Very Low Limit

Thank you for the information that you posted. It’s very useful!





Message 7 of 8
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Valued Contributor

Re: Good news: GOT APPROVED, Not-so-good news: Very Low Limit


@Credit7 wrote:
... My wife and I plan on buying our first home sometime in Jan-Mar 2021 ... Maybe I should just sit tight and don’t apply for anything until June 2020?

They suggest not apping 12+ months before apping for a mortgage. So if your timeline is solid you might consider doing any adding of cards late 2019. And, if I was planning to buy my 1st house I would for sure get a Lowe's card. Maybe a preferred furniture store as well. Getting them well in advance provides ample time to grow the limits. 

Starting Score: (5/24/2018) -- FICO 08 EXP: 643; FICO 08 TU: 642; FICO 08 EQ: 677
Current Score (05/20/2020): FICO 08 EXP: 743; TU: 751; EQ: 759
2020 Goal Score: 760 across the board


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