Which card should I apply for?

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lorkat89
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Which card should I apply for?

Postby lorkat89 » Tue Nov 25, 2014 10:44 am

So I have had my current credit card (Capital One Secured) for over two years. And I'm thinking it's time for a card without an annual fee, and it would be nice to get the money I deposited back. I know you are supposed to hang on to the oldest card, but I feel that should apply if its annual fee free, and you didn't give them any money lol.

I have had the card for 2 years. I have never been late on a payment and have always paid in full. On Credit Karma my score is 751, which is excellent (literally, according to them). And the last statement on my card had a balance of $30 out of $1200. When applying for a new credit card, is it better to have a low balance on a statement, or should I not use my card for a month than apply?

So the cards I am thinking of are:

Discover It - I have always heard good things about Discover, like they have great customer service. The only thing that concerns me is that Discover isn't accepted everywhere. I haven't seen any place in person that doesn't accept them. But I mostly use my card for online transactions (preferring cash for everyday things). And I have a feeling I might run into a problem more online.

Chase Freedom - Don't know much about them, they just seem like the It on Visa (5% categories and stuff). Which categories aren't important because I most likely would not use it for whatever the categories are for. So I would just use the cash back that is the basic 1%

Citi Double Cash - Another company I really don't know about. However there are no categories. And I could earn 2% and I am good at paying my bill. The only thing I wonder is is that if I charge $100 on my card and before the statement closes I pay $20. So the statement balance is $80. Do I still get 2% on the $20 or just 1%. Like does it have to be on a statement before you pay in order to get both percentages.

And one thing all those have in common is no card number on the front. I'm assuming they put it on the back. Am I right? So what should I apply for?
Capital One Secured Card - $1,200 limit
Citi Double Cash - $2,000 limit


popamode72
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Postby popamode72 » Tue Nov 25, 2014 11:28 am

Definitely dump the CapOne card if they won't unsecure it and remove the AF. You might have to call their EO to get that done if you really want to keep the card open.

If you decide to go that route, also see if they will PC it to another product like the CapOne Quicksilver which comes with 1.5% cashback on all the purchases you make. If you close it, it takes 10 years for it to disappear from your credit file so I don't think you're gonna miss out on much once you get approved for better cards.

Did you try checking your FICO scores too? It would be really helpful if you could give some information about those. I'd say check if you have any prequalified offers with Chase, Amex, Citi, etc. and go from there even though that's not always a guarantee that you will/won't get approved for a card with them.

Once you know your FICO scores, looking up stats on CreditPulls for the cards you want will also be helpful IMO. Seems like you shouldn't have much of an issue with that kind of consistent credit history and the fact that you don't have any baddies on your report either.

Based on what you're saying, I think out of all of those cards, the Citi Double Cash would be the one you wanna go for the most since you're not really as interested in the categories that either the Discover It or Freedom have to offer. I'm also assuming you don't have any recent inquiries so I think you have a shot at that card in particular. I even think you won't even need the Quicksilver if you end up getting approved for the card though I'm throwing that out there as an alternative just in case.
Macy's TLs (21k), Lowes (17k), CSP (10k), Sam's Club (10k), Nordstrom (5k), AARP (4.2k), Freedom (3k), Discover (1.5k), Quicksilver (2k), BoA (3k), Barclaycard Arrival (2.5k), Amazon Store (6k), Paypal (4.9k), Sam's Club MC (3.6k), Walmart MC (1.2k)

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CarefulBuilder14
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Postby CarefulBuilder14 » Tue Nov 25, 2014 10:06 pm

I like my Discover, and the online shopping portal is pretty good. Acceptance is still an issue sometimes, online and offline.

I like my Freedom, too. Sometimes the categories are good, and sometimes they're useless.

My Freedom has the numbers embossed on the front. Discover has them flat on the back.

I've never had a card with Citi, but I'd go with either the Freedom or DC. The Freedom has room to grow in reward value if you later get more cards (with annual fees, though) from Chase, and 5% categories are always nice to have. The DoubleCash could become less useful if you pursue travel cards later on.

My first two cards were a Freedom and Discover, and I plan to keep both of them.
Keeping indefinitely: IHG, SchwabPlat, CSP, Discover, Freedom, ED, BCE, Hyatt
May close or PC: Prestige, Arrival, BrooksBros
AA Platinum converting into Costco

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech
Letting new accounts cool off since May

takeshi
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Postby takeshi » Wed Nov 26, 2014 8:22 am

lorkat89 wrote:I know you are supposed to hang on to the oldest card

That's not a given. AAoA isn't immediately affected by account closure. If the card is of no use to you then it doesn't matter if it's the oldest, the newest or anywhere in between.

lorkat89 wrote:When applying for a new credit card, is it better to have a low balance on a statement, or should I not use my card for a month than apply?

Utilization is really what matters. For optimal scoring, 1 balance reporting at 10% or less.

lorkat89 wrote:But I mostly use my card for online transactions (preferring cash for everyday things). And I have a feeling I might run into a problem more online.

You know where you shop both online and B&M so it's really up to you to ensure that acceptance isn't an issue where you need it.

lorkat89 wrote:So what should I apply for?

If you're not going to use the rotating 5% categories then why are you considering such cards? It might help us to understand your reasoning. Of the 3 the DC makes more sense to me based on what you've said so far but it's your priorities that ultimately matter. If you want to maximize rewards have you looked at other 2% and 1.5% cards?

lorkat89 wrote:The only thing I wonder is is that if I charge $100 on my card and before the statement closes I pay $20. So the statement balance is $80. Do I still get 2% on the $20 or just 1%.

You should get 1% for the $100 charge and 1% for the $20 payment. The terms should address this.



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