Is this a good set of cards? What are my chances anyway?

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supercoolman
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Postby supercoolman » Sat Jun 21, 2014 10:29 pm

applying too many at once may also kill your approved cards


MemberSince99
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Postby MemberSince99 » Sun Jun 22, 2014 5:25 am

I would give applying a halt at this point. It's not likely to scare off the ones you got, but that is a good point if you go totally nuts applying for everything in the world all at once it MAY spook some of your existing lenders who take action against you and then it CAN snowball into an avalanche. Best to let things age a while now and work with what you got. Congratulations.

WilliamJefferson
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Postby WilliamJefferson » Sun Jun 22, 2014 12:50 pm

Edit: I guess the last couple posts didn't quite register until now. Are you saying that they cards that approved me will rescind their approval because I applied for too many? How will they know? I thought this application spree was a thing people did, it's what my roommate said to do at least.

Yeah, I'm done applying. I'll try another spree in 2015.

So now:
Sallie Mae Mastercard: Rejected (might call on Monday - but this one I don't really consider critically important - would be nice but not a big deal)

Discover It: Approved, $1500 CL. Mostly wanted just for free FICO score but maybe next year there'll be a good quarter for me.

Chase Freedom: I was initially rejected (when I called they said they sent me a letter but they would reconsider if I wanted, I asked them to and told them I only wanted a modest credit limit) but then I called and they approved me for $1500 CL

Fidelity Investment Rewards Amex: Approved. $2000 CL

American Express Blue Cash Preferred: Approved, don't know the CL, that 1-800 number posted isn't open right now, and their online application status doesn't tell me the CL, but tells me I'm approved.

US Bank Cash+: No word but they basically told me to expect a rejection for it (they said they like to see 3 credit lines open for 2 years each) but an offer for a different card. I'll probably take whatever the other card is but I'll probably only use it once a month to keep it active. I opened a Checking/Savings Account there so I'll try again in a year and hopefully have a good shot at it.

-Just also wanted to say that the US Bank person I was talking too was super nice and friendly. Good service they have over there. Left a very good impression.

Citi Dividend: Rejected, don't care, didn't even want this one really.

With the exception of the US Bank Cash+ Card (which everything has told me I just had 0 chance at), I got all the ones I cared most about. Fidelity Investment Rewards, Blue Cash Preferred, and Chase Freedom. Discover is nice too definately. So I'm happy with the results.

randeman
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Postby randeman » Sun Jun 22, 2014 9:03 pm

Those who have approved you thus far will not reneg if they see you've applied for a lot of credit at one time. It will affect you on future applications, but usually only in the short term.

From what I have read here and on other credit boards, US Bank cards are a b***h to get. One of the things that is hurting you is your aaoa (average age of accounts). They are too new. From what you have described, that's your biggest hurdle. Second is the app spree, but that seems to have less of an impact at least right now.

Everyone here is right about telling you to hold off on your applications. I would wait for the next six months to a year, and, if it were me, only apply for one card every six months or so until you are where you want to be. Until then, use what you have and show you're responsible. I have learned the hard way that frequent applications in a short period of time will hurt you.

Also, for future reference, you should throw an installment line or two in the mix. I don't know if you have a car or student loan, but future creditors like to see installment (fixed payment loan) experience as well as revolving (credit cards).
Cards and Credit lines Acquired:

Escape by Discover (7.75K), Barclay Holland America Visa (7K), Macy's store card (7K), Bloomingdale's store card (2.6K), Citi Custom Credit Line (3.5K), PayPal Smart Connect credit line (2.7K), Chase Freedom Visa (5K), Chase United MileagePlus Visa (5K), Chase Sapphire Preferred Visa (6K), Amazon store card (2.2K), Lord & Taylor store card (550), Nordstrom store card (1500), Gold Delta SkyMiles from American Express (3K), Discover It (6.5K), PayPal Credit Line (1K).

WilliamJefferson
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Postby WilliamJefferson » Mon Jun 23, 2014 2:03 am

randeman wrote:Those who have approved you thus far will not reneg if they see you've applied for a lot of credit at one time. It will affect you on future applications, but usually only in the short term.

From what I have read here and on other credit boards, US Bank cards are a b***h to get. One of the things that is hurting you is your aaoa (average age of accounts). They are too new. From what you have described, that's your biggest hurdle. Second is the app spree, but that seems to have less of an impact at least right now.

Everyone here is right about telling you to hold off on your applications. I would wait for the next six months to a year, and, if it were me, only apply for one card every six months or so until you are where you want to be. Until then, use what you have and show you're responsible. I have learned the hard way that frequent applications in a short period of time will hurt you.

Also, for future reference, you should throw an installment line or two in the mix. I don't know if you have a car or student loan, but future creditors like to see installment (fixed payment loan) experience as well as revolving (credit cards).


I'm not planning on any more applications in the immediate term. Definitely not another until 2015.

I have a car but I just own it outright. It's only worth about 5 or 6K. I rent, don't have a mortgage. Paid half of college through internships and work, parents paid the other half, never had a loan. I don't need to borrow money for anything, and I only want the credit cards for rewards. A debit version of the same thing would be just as useful to me. I not confident enough that I'll be in the area long enough to justify buying a house, and for me a car is just to get from A to B, I'll drive this one into the ground which should be a while to come.

I could try for a personal loan in 6 months but I'd only use it for investing,and am unsure if the interest rate would be worth it. I'm putting 15K into a something high yield (forex signals) but risky, but if that works out the only thing I'd want to get a loan for is to put into that. Is this allowed? Anything less than 20K is kind of useless to me though, and based on my credit limits it seems like it may be hard to get a loan like that.

So basically, I really have no use for any loan.

Alternative, is there anywhere that sells a service of increasing credit this way. Like maybe they offer you a loan but force you to put it in some escrow account so you can't use it, and have you make initial payments on your own and the rest of the payments from that escrow account, and maybe they just charge 1% interest or something? Something like $2000 paid back over 2 years, should be a cheap way to gain credit?

My plan was to, in 9 months-1 year, do another spree of:

US Bank Cash+ (have savings/checking account there now, should help)
Some travel Card (Maybe Chase Sapphire Preferred, maybe Barclaycard Arrival Plus, maybe something else, not sure yet)
Sallie Mae Mastercard
Citi Dividend
Maybe something else if a new card comes up that can do me some good

Would you say it's better to try to apply for 1 in 6 months, wait 6 months and apply for another and so on? If I get rejected from one should I then apply for another or what?

I figured the app spree was the best way to get a bunch of cards quick. Like, that's the point of it.

randeman
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Postby randeman » Mon Jun 23, 2014 3:02 am

You missed what I was telling you. In a pretty direct way. You NEED to have installment experience, especially if you go for a mortgage. I am not saying you couldn't get one without it (because God knows goofier things have happened), but I (and I know for a fact others) have had denials with one of the reasons for the denial (on the letters) including a LACK of installment experience. If you don't want one, don't get one. Just don't be surprised if you're rejected based on that fact.

Moreover, I just took out a personal loan from Citibank, a company that has rejected two credit card applications in the last year but seemed more than willing to approve a loan for me, that gave me a rate that is 40% lower than my lowest revolving rate. If you have good credit, even new credit, I can't imagine that you'd get a super high rate. Besides that, if you do a little research, I think you'll find that most loans to people who have overall decent credit will generally get a lower rate on an installment instrument than a revolver. How many car loans and mortgages out there are granted at 19-24%? They may be out there, but I am willing to bet they are few and far between for someone with decent credit.

Whether you get approved or denied for your next application in six months, I would carefully consider immediately applying for another. Although stranger things have happened, you might find yourself being rejected for too many apps at one time. You're very young and odds are you have many years ahead of you. Is there really an urgent need for a bunch of cards at this stage? You'll get where you want to be soon enough. If you look at the list of my cards in my signature, those cards were all approved in the last four years. It didn't take much time for me and it probably won't for you, either.
Cards and Credit lines Acquired:

Escape by Discover (7.75K), Barclay Holland America Visa (7K), Macy's store card (7K), Bloomingdale's store card (2.6K), Citi Custom Credit Line (3.5K), PayPal Smart Connect credit line (2.7K), Chase Freedom Visa (5K), Chase United MileagePlus Visa (5K), Chase Sapphire Preferred Visa (6K), Amazon store card (2.2K), Lord & Taylor store card (550), Nordstrom store card (1500), Gold Delta SkyMiles from American Express (3K), Discover It (6.5K), PayPal Credit Line (1K).

MemberSince99
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Postby MemberSince99 » Mon Jun 23, 2014 5:51 am

Also, yes, your current creditors when they see you've gone hog wild on the applications (and you have let's be honest, not that the rest of us haven't done it too) MAY take action against you. In particular, Barclay has a reputation for doing that (Sallie Mae) though I've heard rare stories of Amex also doing it.


If you were marginal for Barclay's approval, it is smartest to lay low for 6 months after approval. By marginal I mean you had to recon to get the card. In your case, you were declined so if you call and get it on recon, I'd be very cautious about doing anything else for 6 months. You said you don't plan to and that's good, but my point here is, yes, it is possible (not that common but possible) that they can take action against you like cut your limit or even close you down. Just an FYI.

WilliamJefferson
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Postby WilliamJefferson » Mon Jun 23, 2014 9:01 am

You missed what I was telling you. In a pretty direct way. You NEED to have installment experience, especially if you go for a mortgage. I am not saying you couldn't get one without it (because God knows goofier things have happened), but I (and I know for a fact others) have had denials with one of the reasons for the denial (on the letters) including a LACK of installment experience. If you don't want one, don't get one. Just don't be surprised if you're rejected based on that fact.


So, can I game this? Pay $100 for a loan on money I'll never use in an escrow account, pay money back automatically from it? Should I game it? I don't have any use for a loan. If I had more money the only thing I'd do would be invest it. Should I do that?

There's nothing that I want that I can't buy outright.

If you were marginal for Barclay's approval, it is smartest to lay low for 6 months after approval. By marginal I mean you had to recon to get the card. In your case, you were declined so if you call and get it on recon, I'd be very cautious about doing anything else for 6 months. You said you don't plan to and that's good, but my point here is, yes, it is possible (not that common but possible) that they can take action against you like cut your limit or even close you down. Just an FYI.


How do they even know?

MemberSince99
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Postby MemberSince99 » Mon Jun 23, 2014 10:03 am

They periodically check your credit (soft pull you). As a current lender they can check your credit whenever they like. And they do. How often varies by lender and your relationship with them, but they will know.

WilliamJefferson
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Postby WilliamJefferson » Mon Jun 23, 2014 10:27 am

Thanks.

Also, just found out my credit limit for the Blue Cash Preferred. $7000. It really surprisingly high. My roommate says that having a high CL like that makes it easier to get the US Bank Cash+ in the future, is that true? If so, glad I got it.



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