Just got Disc in May, want to get another...too soon?

For just about anything you want to get off your chest about credit cards.
11 posts
rwockenf
Green Member
Green Member
 
Posts: 18
Joined: Thu Jun 18, 2015 9:02 am

Just got Disc in May, want to get another...too soon?

Postby rwockenf » Thu Jun 25, 2015 7:15 pm

I have about 11.5 years of credit history on my credit reports. I have been sharing an AMEX with my girlfriend and, because of the APR, I applied for a Discover it card in May and was approved. I moved the balance over so now my AMEX is basically $0 balance and my Discover is about 80% utilized. I would really like to apply for another card to try and help my utilization while we pay down the discover so I don't start racking up the AMEX again with misc. charges.

Is it too soon for another hard pull? I know they stay on for two years, but am I decreasing my chances of being approved by it being so soon? If so, how long should I wait? I realize there are other factors, but I am looking for a general response, if possible.

If I do, are there any recommendations on what card I should apply for? I have a 670 FICO. I don't really travel a lot and am looking for more basic rewards (gas/groceries/etc.).

On that note, I have a Costco TE card which will obviously be going away next May. Any recommendations on cards to replace?

Thanks for answering any or all of the MANY questions I just asked.


User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 4205
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: Just got Disc in May, want to get another...too soon?

Postby CarefulBuilder14 » Thu Jun 25, 2015 10:18 pm

Just to clarify your background a little...

Is your Amex is a joint account, or is one of you an authorized user on an individual account in the other person's name? What about for Discover?

What are the credit limits and balances on each card?

What has your 11.5 years of history involved - credit card, car loans, student loans, etc?

Do you have a history of late payments, charge-offs, accounts in collection, etc? How long ago?

To have a 670 FICO, either your overall utilization must be very high or you must have bad marks in your past. You said Discover is at 80%, but not how big the Discover CL is relative to the Amex.

If someone had 11.5 years of clean history, low utilization, and one new account in May, that person would have excellent odds of getting a new card. I've opened one card in each of January, April, May, and June this year. I have less than two years of history, but I have low utilization and perfect payment history. My FICOs are around 730-745.

In other words, what might hold you back is the high utilization and any bad payment history. The fact that you've opened one other account last month is not very likely to be a concern. Nothing is guaranteed, of course.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

MemberSince99
Centurion Member
Centurion Member
 
Posts: 4913
Joined: Sun May 20, 2012 4:35 pm
Location: WI

Re: Just got Disc in May, want to get another...too soon?

Postby MemberSince99 » Fri Jun 26, 2015 5:56 am

I'd wait at least 6 months if I were you. My score is well over 100 points higher than yours, and I had my IT for 6 months and applied for Miles and was still denied because I was at my internal limit with them.

You might apply and get it, but I sure wouldn't bet any money on that happening.

takeshi
Centurion Member
Centurion Member
 
Posts: 1741
Joined: Wed Jun 05, 2013 3:12 pm
Location: US

Re: Just got Disc in May, want to get another...too soon?

Postby takeshi » Fri Jun 26, 2015 8:26 am

rwockenf wrote:and my Discover is about 80% utilized.

You need to get that down versus relying on new cards to reduce utilization. Individual utilization matters as well and 80% is very high. It will have an impact on any applications -- not just approval but the limit and APR that you'd qualify for. Short term high utilization generally isn't an issue but prologned high utilization can get you into trouble.

rwockenf wrote:Is it too soon for another hard pull? I know they stay on for two years, but am I decreasing my chances of being approved by it being so soon? If so, how long should I wait? I realize there are other factors, but I am looking for a general response, if possible.

There's no such thing as a general response. It's all about one's credit which is a sum of the standard factors. A person with a solid profile in good standing could easily app for another card, if not several more, and not have any issues with approvals. Hard pulls are a relatively small factor and if one is getting cited for too many inquiries then one generally has other credit issues that need to be addressed.

Your score is a bit low. Not sure if the score you posted reflects the high utilization on your Discover card but you have very high utilization on it. Get the utilization down and address the other issues holding your score down. If you have any derogs you need to look into addressing them as they tend to have a significant impact and hold one's scores down as long as they are on reports. Don't rely solely on time.

Also keep in mind that you don't have just one FICO. You have a score with each CRA and while many creditors may use FICO 8 there are also many creditors that use other FICO models. When was the last time you pulled and reviewed all 3 reports?

rwockenf wrote:I have about 11.5 years of credit history on my credit reports.

If that your oldest account or your AAoA? The latter is more useful.

rwockenf wrote:On that note, I have a Costco TE card which will obviously be going away next May. Any recommendations on cards to replace?

For recommendations we always need to know the needs/wants of the individual to narrow down the options. For the TE, I'd recommend waiting to see what AmEx officially states regarding what they will do for existing cardholders.

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 4205
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: Just got Disc in May, want to get another...too soon?

Postby CarefulBuilder14 » Fri Jun 26, 2015 10:27 am

MemberSince99 wrote:I'd wait at least 6 months if I were you. My score is well over 100 points higher than yours, and I had my IT for 6 months and applied for Miles and was still denied because I was at my internal limit with them.

You might apply and get it, but I sure wouldn't bet any money on that happening.

I think OP just means another card in general - not necessarily a second card from Discover.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

rwockenf
Green Member
Green Member
 
Posts: 18
Joined: Thu Jun 18, 2015 9:02 am

Re: Just got Disc in May, want to get another...too soon?

Postby rwockenf » Fri Jun 26, 2015 10:44 am

I'll try to clarify more. Sorry for the ambiguity.

1. The AMEX is a joint account. The Discover is just me.

2. The limit / balance is: AMEX - $14k / $0 & Disc - $12k / $10k

3. My history is credit cards and student loans.

4. No charge offs or collections. I have a few late payments from about 3 years ago and one late payment from 3 months ago on a student loan.

5. 2 HPs on my account

6. As far as the type of card to replace my Costco TE card, I am not interested in miles, but rather rewards for gas/groceries/etc. That being said, it is not a prerequisite that the card have rewards. First and foremost I am looking for a card with no annual fee and a lowerish interest rate. Rewards are just a perk for money already to be spent.

7. No I am not necessarily looking for another card with Discover. Just another card in general.

8. A follow up to one of my original questions: Is it helpful in attempting to get approved for another card to transfer a balance? Does that factor in to the approval process and also the amount you get approved for? If so, would it be beneficial to try and transfer some of the Discover balance to a new card? Or would that seem really shady because of how soon it is since the last transfer...

I'm not trying to bob and weave with the credit cards and avoid paying down the balances. On the contrary, I will be attacking them vigorously. I have just recently taken a strong interest in improving my credit situation and am looking for the best avenue while also improving my spending power. Thank you again.

rwockenf
Green Member
Green Member
 
Posts: 18
Joined: Thu Jun 18, 2015 9:02 am

Re: Just got Disc in May, want to get another...too soon?

Postby rwockenf » Fri Jun 26, 2015 10:46 am

Sorry. Forgot one:

The 11.5 years is the oldest account. Average is 6.5 years. Not too long, I know. Getting the Discover last month really pulled down the average.

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 4205
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: Just got Disc in May, want to get another...too soon?

Postby CarefulBuilder14 » Sat Jun 27, 2015 3:48 pm

Broadly speaking, with an Amex and a Discover, you might find it useful to get a Visa or MasterCard.

For how long do you have the Discover balance transfer at a 0% APR? Can you pay it off while it remains at 0%?
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red

rwockenf
Green Member
Green Member
 
Posts: 18
Joined: Thu Jun 18, 2015 9:02 am

Re: Just got Disc in May, want to get another...too soon?

Postby rwockenf » Sat Jun 27, 2015 9:59 pm

Discover is 0% until August 2016. Theoretically we could pay it off (again the balance is coming from the AMEX which was shared), but she is not as aggressive in wanting to pay off debt as I am. I would guess that we could get the 10K down to a 2500-4000 before the interest kicks in. Maybe I wait...and try and transfer the remaining balance to a new card a month or so before the interest kicks in?

User avatar
CarefulBuilder14
Centurion Member
Centurion Member
 
Posts: 4205
Joined: Thu May 08, 2014 7:42 pm
Location: United States

Re: Just got Disc in May, want to get another...too soon?

Postby CarefulBuilder14 » Sat Jun 27, 2015 11:39 pm

Maybe just focus on paying it off. Doing a BT to Discover was the necessary step. An extra card right now may just give her (or you) the temptation to overspend/underpay.
Very useful: SchwabPlat, CSP, IHG, Costco (was AA Plat), Freedom, SPG, Prestige (retention)
Somewhat useful: Discover, ED (was EDP), BCE, Hyatt
SD with activity alerts, might close: Arrival

Might add: Proper business card, CSR, Ritz, Delta Gold, First Tech, BofA Travel PH, Aviator Red



Return to “General Credit Card Talk”

Who is online

Users browsing this forum: No registered users and 2 guests