Rebuilding Credit - When do I apply for more cards?

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knuddl
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Rebuilding Credit - When do I apply for more cards?

Postby knuddl » Thu Oct 21, 2010 1:22 am

I'm trying to rebuild my credit. I didn't use it for a very long time. So to say I merely start from scratch due to financial problems more than 7 years ago.

Now, all the old accounts are closed. The "good" ones still show on the credit reports. These include Mortgage, Car loan and CCs (Amex, Visa, MC).

This summer I applied for the first time after about 11 years for a credit card again. I was denied twice with the argument of having too few credit accounts with too little history.

Through forums I found out that the only way of starting to rebuild my credit-history would be in getting secured cards. Which I did. I got one from Bank of America Visa with $2'000.- and one from CapitalOne MC with $1'500.-. Both accounts I've had now for 5 months

My score is currently at 766. I make about 120k a year and have been with the same employer for almost 3 years.

I have 4 hard inquires on my credit reports. CreditCard match tools tell me i could apply for Amex Platinum or Gold. I do want to get an Amex Gold and a Discover Card as well as an unsecured Visa and MC.

When should I apply? I don't want to get more hard inquires, when I'm not sure if I can get approved. Any thoughts?


knuddl
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add on

Postby knuddl » Thu Oct 21, 2010 6:36 am

by the way...

The 766 is an Experian score. I just checked my Fico score. It indicates 718.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Mon Oct 25, 2010 9:42 pm

Experian scores tend to run higher. The 718 FICO isn't great but it is good and could be sufficient to get approved for some of the cards mentioned.

The hard inquiries will drop off after two years. Are any of them set to fall off soon?
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

knuddl
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Postby knuddl » Thu Oct 28, 2010 3:05 am

Actually none of them is set to fall of soon, since the first inquiry is dated from last april and the last one from june this year. So it'll take about another 18 month for them to fall off.

In 2003 I left the country and just came back this last spring. Since I left I haven't applied for any kind of credit anymore. Now I'm back, got a good job and want to rebuild my credit history.

I'm aware, that if I'm applying to quickly for too much credit I will be getting to many inquiries showing on my report, hence lowering my credit score.

The card I really want to have is the Amex gold card. Secondary the Discover card. I used to have an Amex green which I received in 1997 and then in 2002 I couldn't make any payments towards the balance. A couple of month later I made a PIF and then Amex closed my account. Today it shows on my report as paid in full satisfactorily. Again, they closed it in 2002 because I couldn't pay the balance. When I called CS at that time they told me that they couldn't reopen it at the moment and that I may want to try it at a later time.

Do you think they would consider that I used to have an account with them, that it was paid in full before it was closed and that beside of all these things I've had a rather good credit history?

By the way, my Equifax and Transunion account show one public record for $1'477.00 from 10/2006. I know that this is from one cc that I didn't pay before leaving the country in 2003. Surprisingly enough that it was put on my record in 2006, it seems that this bad debt was sold a couple of times.

So, do you think I should give it a shot and apply for the amex gold? Should I also apply for the Discover More card at the same time? I've read that applying for more cards at the same time won't affect your score as much.

knuddl
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Postby knuddl » Mon Nov 01, 2010 2:49 am

Alright, I took a shot and guess what! I got approved for the Amex Gold with the 321 rewards. I'm really excited. At the same time I applied for the Discover More card with 5% Cash Back. They didn't approve me instantly, but I should get an answear within the next 30 days.

I think it actually matters if you had an account with Amex in the past. If you left it in good standing they will include that in their credit decision.

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Mogul of Pineapples
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Postby Mogul of Pineapples » Tue Nov 02, 2010 7:59 pm

I was reading your first reply and thinking in my head there would be no way you would be approved for the Gold with that '06 charge-off but then I get to your follow-up that says you were approved- I'm surprised but that's great!

I think part of it has to do with the Gold being a charge card rather than a credit card. Since charges are due in full each month and they can approve or deny charges when they want with the no-preset limit, I think it's a lot less risky of a card for them then giving someone a regular credit card.

Discover can be strict and was that way even before the recession. If you are approved I will be even more surprised!
Disclosure: I am a moderator/paid staff of this site, which does have advertising relationships with some credit cards that are discussed and linked to. Regardless, anything I say is my honest opinion.

Current Cards:
American Express: Blue Cash, Simply Cash Bank of America: WorldPoints Platinum Plus Chase: Amazon, British Airways, Cash Plus Rewards, Freedom, Ink Cash Citi: Thank You Premier, Dividend Platinum Select Discover: More
Primary Everyday Card: American Express Blue Cash
Primary Travel Card: Chase Sapphire Preferred

knuddl
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Postby knuddl » Thu Nov 04, 2010 4:04 am

Well, let's see what Discover has to say. I'll let you know as soon as I get an answer.

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Cucumber
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Postby Cucumber » Fri Nov 12, 2010 5:25 pm

I think inquiries fall off totally after 24 months but are count less at 6 and 12 months after. That is why it's recommended to not apply for new credit 6 months before getting a mortgage.
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JL70
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Postby JL70 » Fri Nov 12, 2010 7:20 pm

Cucumber wrote:I think inquiries fall off totally after 24 months but are count less at 6 and 12 months after. That is why it's recommended to not apply for new credit 6 months before getting a mortgage.


Yes, they fall off completely after two years, but as far as I know, FICO only look at the last 12 months.

knuddl
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Postby knuddl » Wed Dec 22, 2010 3:43 am

Alright, I got some news. As I already mentioned I did get approved instantly for the Amex Gold 321 Rewards Card. The very first day I put almost $1000.- on the card (about $600.- went towards a hotel reservation, the rest towards some small stuff). When the first statement period ended, I put another $1200.- on the card. That totals up to $2200.-. I already PIF the first statement. Hence it shouldn't be such a problem to keep this spending ability. I assume it also has to do with my income (120k). THEY WANT ME to spend at least 3k a month. Because if I spend 30k a year I get the additional 15000 points for my rewards. I don't think I will spend that much money on that card, but it's good to know that I could.

By the way, Amex has "check your spending ability" button. I think it's great if you can check your spending ability first before you go into a store and might have an embarrassing moment because your payment doesn't get approved. I really like that one.

Now comes the even better part. I received a letter from Discover to call an 800 number for further processing. I talked to a very nice woman who basically just verified all the information that I already made on my online application. Well, I was actually already approved. They just wanted to verify my info and that it wasn't some kind of phony application. Even though the limit is only $1000 she told me since I do have a very good payment history on the other accounts I should be able to get a limit increase after 6 months. Let's see what happens.

I also called BofA to have my secured Visa turned into an unsecured. The Lady there told me that she can't do that right now. I'd have to wait another 3 to 6 month and then it shouldn't be a problem.

So, I'm really happy, I got what I wanted. I keep using the Visa, MC and Discover for the small purchases and PIF every month. The Amex I use for the large amounts i spend. That way I keep everybody happy.

Thanks for the help.

PS: That charge-off from 2006 is actually a public record. I assume it came from a CA that bought that debt. Now guess what, I just had another CA pull my record (hard inquiry) last week. I'm curious to see what I'll get from them in my mail the next couple of weeks. I might just call 'em up and tell them that they've bought a bad debt. If they don't want to give in I'll try to settle for a small amount.



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