Chase Credit Card Combo

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Jc2020
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Chase Credit Card Combo

Postby Jc2020 » Sun Sep 27, 2015 5:40 pm

Currently I have an Amex (20K limit) and a BofA (2k) with a credit utilization of 13.5% and a 715-720 credit.
I'm thinking of getting the chase freedom and sapphire preferred combo (points for traveling). Should I pay off my cards and then apply for one of the cards ? If so which one? Or should I just apply for one of the cards now?

I'm planning to replace my BofA card with these cards. I want to keep my Amex because of the high credit limit.


takeshi
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Re: Chase Credit Card Combo

Postby takeshi » Mon Sep 28, 2015 11:00 am

Which card is always a matter of what suits the individual best. We really can't provide meaningful feedback without a lot more information about your specific needs/wants. Where does most of your spend go? Which card would allow you to accrue more UR points if you only had one or the other? The other consideration is that without the CSP the Freedom is just a cash back card but you can certainly accrue UR points and hold on to them if you have the Freedom and don't yet have the CSP.

Jc2020 wrote:Currently I have an Amex (20K limit) and a BofA (2k) with a credit utilization of 13.5%

Jc2020 wrote:Should I pay off my cards and then apply for one of the cards ? If so which one? Or should I just apply for one of the cards now?

Generally speaking, lower utilization is better. However, we can't tell you what you should or shouldn't do. We have no idea if lower utilization would provide a significant improvement. You have to determine how far you're willing to go to optimize your credit when applying.

Vermonster
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Re: Chase Credit Card Combo

Postby Vermonster » Mon Sep 28, 2015 11:30 am

If there is any doubt I would suggest going for the Freedom first. It will be easier to get and give you a good idea of how much Chase wants your business.

After having the Freedom for a while you might even receive a pre-quallified offer for the CSP.
Chase Freedom $9k~~Chase Sapphire Preferred $6.5k~~Amex Blue Cash Preferred $12.4k~~Citi Double Cash $4.7k

Jc2020
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Re: Chase Credit Card Combo

Postby Jc2020 » Mon Sep 28, 2015 2:44 pm

takeshi wrote:Which card is always a matter of what suits the individual best. We really can't provide meaningful feedback without a lot more information about your specific needs/wants. Where does most of your spend go? Which card would allow you to accrue more UR points if you only had one or the other? The other consideration is that without the CSP the Freedom is just a cash back card but you can certainly accrue UR points and hold on to them if you have the Freedom and don't yet have the CSP.

Jc2020 wrote:Currently I have an Amex (20K limit) and a BofA (2k) with a credit utilization of 13.5%

Jc2020 wrote:Should I pay off my cards and then apply for one of the cards ? If so which one? Or should I just apply for one of the cards now?

Generally speaking, lower utilization is better. However, we can't tell you what you should or shouldn't do. We have no idea if lower utilization would provide a significant improvement. You have to determine how far you're willing to go to optimize your credit when applying.



My plan is for traveling. My girlfriend moved up north so her and i will be flying back and forth to see one another frequently. So the ideal plan would be to use the Freedom card on purchases where i get 5% cash back and use the CSP on everything else. Once i accumulate enough points i would transfer my points from the freedom card to the CSP. From there i can use the points i gained on both cards for traveling.
I do plan on paying off all my cards and cancelling my BofA card. However, I know that'll hurt my credit score so that's why I'm thinking of applying for one or the other before i cancel my BofA card.

Just looking for thoughts/advice.

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Vattené
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Re: Chase Credit Card Combo

Postby Vattené » Mon Sep 28, 2015 4:07 pm

Your odds of approval will depend on your overall credit profile. What other accounts do you have reporting? How long of a history do you have, and how old are your individual accounts? Do you have any late payments reporting? Is that 13.5% your overall utilization across both cards (your $2,000 limit is relatively low, so you could only have $1,500 outstanding on it but it would have a very high utilization, which still looks bad)? Approval odds will vary greatly given different answers to these questions.

Is that 715-720 credit score a FICO score? If so, then just based on that I would say your chances of approval are pretty good. But again, if those two credit cards are the only things reporting on you and you've only had them for a year, your chance of approval becomes more iffy. 13.5% utilization is pretty good, and generally speaking lowing that factor alone probably wouldn't improve your chances by too much just because there are a lot of factors at play.

Are your statement cutoffs coming up soon? If so, I'd say pay off the cards before the statements cut and you'll likely get $0 reporting for the accounts. It will help you, but probably not make or break you.
-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

Kevin86475391
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Re: Chase Credit Card Combo

Postby Kevin86475391 » Mon Sep 28, 2015 11:45 pm

Should you pay off your credit cards if you can afford to? Of course!

Think about it this way: Why do you want to apply for the Freedom and CSP? For rewards, right? The reality is that rewards are never going to offset the interest you're paying by carrying a balance. 5% rewards is great...but it's never going to offset even low-rate interest of 11-12%. The fact that getting your utilization down will also improve your odds of approval and more favorable approval terms is secondary. I would advise against focusing on rewards at all if you're paying interest. It's just a losing game.

Also, I wouldn't be in a rush to close your BofA card. As you pointed out it's more likely to hurt your credit than anything else. Personally I wouldn't close it until I had both the new cards and was sure I had absolutely no use for it.

As others have pointed out, the Chase Freedom is easier to get than the CSP, and you could simply accumulate but not redeem your UR points until you get the CSP at a later date.

It obviously depends on your priorities, preferences, and needs, but what I would do if I were you would be:
-Pay off all or as much of my credit card balances as I could
-Apply for the Chase Freedom, begin accumulating rewards and enjoy the 0% intro APR (if you can't completely pay off your existing credit card balances, you'd be better off carrying a balance on the 0% intro Freedom).
-Wait about 6-12 months (Just personally I never apply for credit more often than that).
-Apply for CSP
-Then if necessary/desired close the BofA.

But that's just me. I like a slower approach to credit-related stuff.

Jc2020
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Re: Chase Credit Card Combo

Postby Jc2020 » Tue Sep 29, 2015 9:58 pm

Kevin86475391 wrote:Should you pay off your credit cards if you can afford to? Of course!

Think about it this way: Why do you want to apply for the Freedom and CSP? For rewards, right? The reality is that rewards are never going to offset the interest you're paying by carrying a balance. 5% rewards is great...but it's never going to offset even low-rate interest of 11-12%. The fact that getting your utilization down will also improve your odds of approval and more favorable approval terms is secondary. I would advise against focusing on rewards at all if you're paying interest. It's just a losing game.

Also, I wouldn't be in a rush to close your BofA card. As you pointed out it's more likely to hurt your credit than anything else. Personally I wouldn't close it until I had both the new cards and was sure I had absolutely no use for it.

As others have pointed out, the Chase Freedom is easier to get than the CSP, and you could simply accumulate but not redeem your UR points until you get the CSP at a later date.

It obviously depends on your priorities, preferences, and needs, but what I would do if I were you would be:
-Pay off all or as much of my credit card balances as I could
-Apply for the Chase Freedom, begin accumulating rewards and enjoy the 0% intro APR (if you can't completely pay off your existing credit card balances, you'd be better off carrying a balance on the 0% intro Freedom).
-Wait about 6-12 months (Just personally I never apply for credit more often than that).
-Apply for CSP
-Then if necessary/desired close the BofA.

But that's just me. I like a slower approach to credit-related stuff.


Thank you for the advice! You're right about lowering my utilization ratio down before i apply. I'll definitely follow your steps and go for the freedom card first in about a month or so and takes it from there.



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