Should I ask Freedom for CLI or apply for an Amex/Discover It?

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Julio Iglesias
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Should I ask Freedom for CLI or apply for an Amex/Discover It?

Postby Julio Iglesias » Tue Nov 04, 2014 5:09 pm

Quick bio:

Fico somewhere in the 700's according to mortgage lender.

Credit Karma 700
Credit Sesame 735

My only cards are:
Chase Freedom - $1,200 limit
Macys - $600
GE capital/Conns - $2,000

I am trying to get the highest credit score possible without a mortgage (i don't own a home, yet)

I have lurked these forums before, and from what I gather, having an Amex is held in extremely high regard in the credit building community for some reason.

The reason I feel I am ready for a new card is, my score recently shot up because my one and only collections account was dropped from my report. My inclination, from what I have read here, is to either ask for a CLI from Chase, since my score just shot up.

But, I also read that i should have at least 2-3 credit cards. So that's why I am inclined to apply for an green or gold amex or a discovery it/it chrome.

So what do you guys think?

What is my next best move?

Thanks in advance, and I love this forum!


Julio Iglesias
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Postby Julio Iglesias » Tue Nov 04, 2014 5:51 pm

Also, maybe I should do both in the same day? Since my credit wouldnt take the hit from the other hard pulls on the same day, right?

Nixon
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Postby Nixon » Tue Nov 04, 2014 6:40 pm

Julio Iglesias wrote:Quick bio:

Fico somewhere in the 700's according to mortgage lender.
[color="Red"]
Credit Karma 700
Credit Sesame 735[/color]


[color="DarkGreen"]Do yourself a favor and get some true FICO scores. There are ways to do this without incurring cost on at least one bureau.
I'm not sure what I'm allowed to say on here so I'll be cautious and say it's not a hard search.[/color]
:)

My only cards are:
Chase Freedom - $1,200 limit
Macys - $600
GE capital/Conns - $2,000

[color="DarkGreen"]I won't say you necessarily NEED more credit, but having more store cards than revolving V/MC/AX/D cards might raise an eyebrow if you need to go for a Recon and or manual review.[/color]

[color="Red"]I am trying to get the highest credit score possible without a mortgage (i don't own a home, yet)[/color]

[color="DarkGreen"]Age of accounts, Payment history, and Utilization will be the biggest factor here. There is no magic "add 50pts to my scores" button.
If there was. This forum and others wouldn't exist[/color]
:)

[color="Red"]I have lurked these forums before, and from what I gather, having an Amex is held in extremely high regard in the credit building community for some reason.[/color]

[color="DarkGreen"]Welcome to the board! I am a new member myself but was recently heavily active on another Credit forum.[/color]

[color="Red"]
The reason I feel I am ready for a new card is, my score recently shot up because my one and only collections account was dropped from my report. My inclination, from what I have read here, is to either ask for a CLI from Chase, since my score just shot up. [/color]


[color="DarkGreen"]How old is your Chase card?, Try not to take a hard pull in order to try for a CLI.[/color]

[color="Red"]But, I also read that i should have at least 2-3 credit cards. So that's why I am inclined to apply for an green or gold amex or a discovery it/it chrome.[/color]

[color="DarkGreen"]You technically do already. What does CK show as your Average Age of Accounts?[/color]

[color="Red"]
So what do you guys think?
[/color]

[color="DarkGreen"]
I'd like think you're off to a great start thus far. How is your utilization on those cards you have now?[/color]


[color="Red"]Thanks in advance, and I love this forum![/color]

[color="DarkGreen"]
You're welcome![/color]
:)



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Julio Iglesias
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Postby Julio Iglesias » Tue Nov 04, 2014 9:35 pm

Update!

Just got approved for a Discover It!

Dont know the credit limit yet, they said ill get it in the mail.

Should I say **** it and apply for an Amex gold tonight too before the inquiries ding my scores??!!

takeshi
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Postby takeshi » Wed Nov 05, 2014 7:56 am

I don't think we can really provide any meaningful suggestions for cards solely to improve your score. You really should consider the benefit and usefulness of cards you're considering to apply for. A new account is going to introduce changes that could have a net positive or net negative effect on your score. It really all depends on your credit and how the various usual factors would impact your credit.
http://www.myfico.com/crediteducation/whatsinyourscore.aspx

A new account might help your utilization (Amounts Owed) but it really depends on the credit limit that the creditor gives you and how that affects your utilization. You will incur a hit for the hard pull (New Credit). You will reduce your AAoA (Length of Credit History). That's really about all we can say.

Julio Iglesias wrote:I have lurked these forums before, and from what I gather, having an Amex is held in extremely high regard in the credit building community for some reason.

Two of the bigger reasons are the 3x CLI (Google and you'll find a very informative thread on another site) and backdating.

Julio Iglesias wrote:My inclination, from what I have read here, is to either ask for a CLI from Chase, since my score just shot up.

Doesn't hurt to try but Chase isn't known for granting CLI's. That said, there's no telling whether or not those that have not received CLI's from Chase simply didn't have credit that warranted a CLI or if Chase just doesn't hand them out. Given that they've auto CLI'ed my wife several time I doubt the latter. You will incur a hard pull though.

Julio Iglesias wrote:Also, maybe I should do both in the same day? Since my credit wouldnt take the hit from the other hard pulls on the same day, right?

Does not matter. HP's report immediately. The only thing you avoid by apping within a short timeframe is not having the new accounts report which reduces your AAoA.

Nixon wrote:What does CK show as your Average Age of Accounts?

CK provides AAoOA, not AAoA.

Nixon
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Postby Nixon » Wed Nov 05, 2014 8:16 am

takeshi wrote:CK provides AAoOA, not AAoA.


I just wanted to get a general idea. :)
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PlyrStar93
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Postby PlyrStar93 » Wed Nov 05, 2014 11:39 am

Julio Iglesias wrote:Dont know the credit limit yet, they said ill get it in the mail.

If you call them, they should be able to tell this information. Right after approval on the phone, they immediately told me the limit.

Now that you don't know your card number, you should still be able to use your SSN when they ask for your information.
Julio Iglesias wrote:Should I say ____ it and apply for an Amex gold tonight too before the inquiries ding my scores??!!

The new accounts and reduced Average Age of Accounts may be something to consider more that reduce score. New accounts may not report immediately, while inquiries do. A single inquiry may knock off only a couple of points, but a dozen of inquiries may pile that up.

I would say based on your need you can choose to apply now, or if you don't need that particular card at all then choose another card or don't apply at all.

AMEX does have the backdating benefit. Since 2014 is nearly over, if you want to be backdated to this year when you get other AMEX cards then now may be time to hurry up.
Citi Forward Visa $5000 10/2012 | American Express Blue Cash Everyday $8000 2/2014 | Discover it $7000 5/2014
Chase Freedom Visa Signature $7000 6/2014 | Citi ThankYou Premier Visa Signature $5000 1/2015
All EMV.

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Vattené
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Postby Vattené » Wed Nov 05, 2014 2:51 pm

Julio Iglesias wrote: [...]from what I gather, having an Amex is held in extremely high regard in the credit building community for some reason.

To the extent that it is, I would argue it is for its benefits/perks as a card and not for any credit-building-specific purposes. As far as a score is determined, a tradeline is a tradeline. The time it was established and credit limit are what really matter (well any balance you carry does too, but that is up to you and not the issuer). It's not like a credit analyst / mortgage lender will look over your report and think you deserve a lower rate based on having an Amex BCE with credit limit X rather than a Chase Freedom with credit limit X, for example. I think people like Amex because they offer good products and like to build relationships with customers. They also cultivate an image of being for high net worth and high status people. As it's been mentioned, though, the 3X CLI and backdating are perks that have a positive impact on credit.

Congratultions on the Discover approval! I've had one since February and really enjoy the card. The free FICOs alone make it a great card to have.

You may decide you want to go for an Amex soon (getting a "member since" date established in 2014 would be nice), but I encourage you to look for a card well suited to you. Can you make use of a charge card? Be aware you'll have to pay in full each month and they will come with an annual fee. Generally, if you aren't a big traveler then the charge cards don't offer benefits you can fully utilize. Maybe the benefits will outweigh the costs of one of their AF cards, but this is something to carefully consider before applying. A revolver with no AF might be good for you - something that won't cost you anything, but will still earn something for you (like a BCE for cash back or an EveryDay if you like Membership Rewards points).
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now

Nixon
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Postby Nixon » Wed Nov 05, 2014 3:58 pm

Vattené wrote:To the extent that it is, I would argue it is for its benefits/perks as a card and not for any credit-building-specific purposes. As far as a score is determined, a tradeline is a tradeline. The time it was established and credit limit are what really matter (well any balance you carry does too, but that is up to you and not the issuer). It's not like a credit analyst / mortgage lender will look over your report and think you deserve a lower rate based on having an Amex BCE with credit limit X rather than a Chase Freedom with credit limit X, for example. I think people like Amex because they offer good products and like to build relationships with customers. They also cultivate an image of being for high net worth and high status people. As it's been mentioned, though, the 3X CLI and backdating are perks that have a positive impact on credit.

Congratultions on the Discover approval! I've had one since February and really enjoy the card. The free FICOs alone make it a great card to have.

You may decide you want to go for an Amex soon (getting a "member since" date established in 2014 would be nice), but I encourage you to look for a card well suited to you. Can you make use of a charge card? Be aware you'll have to pay in full each month and they will come with an annual fee. Generally, if you aren't a big traveler then the charge cards don't offer benefits you can fully utilize. Maybe the benefits will outweigh the costs of one of their AF cards, but this is something to carefully consider before applying. A revolver with no AF might be good for you - something that won't cost you anything, but will still earn something for you (like a BCE for cash back or an EveryDay if you like Membership Rewards points).


To this day AMEX Charge cards seem to be where most people burn their bridge with AMEX. They take NPSL to mean no revolving limit and then try to slow pay it and end up getting shut down real quick.
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Vattené
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Postby Vattené » Wed Nov 05, 2014 4:12 pm

Nixon wrote:To this day AMEX Charge cards seem to be where most people burn their bridge with AMEX. They take NPSL to mean no revolving limit and then try to slow pay it and end up getting shut down real quick.

Is that so? Perhaps the type of people prone to this just want a charge card for the status symbol, and like flashing it around and swiping it to feel like a big spender.

Some people make great use out of their charge cards, but I am not one of them. If you don't travel frequently, you just don't get too much out of them. I will not be paying Amex for the privilege of not accruing interest fees. I am a transactor anyway, and I can PIF for free with an EveryDay.
-Vattené
FICO-8:
EX - 809 (11/16) | TU - 803 (11/16)
Primary Cards:
American Express EveryDay - $20,000 (10/14)
Discover it - $23,000 (2/14)
AU on Barclay Sallie Mae - $10,000 (8/15)
plus several store accounts of varying usefulness now



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