Is it bad to get good cards too soon?

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WS6R6
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Is it bad to get good cards too soon?

Postby WS6R6 » Tue Sep 25, 2012 12:47 pm

I have gained A LOT of knowledge reading this forum the past 2 months and found a personal plan about what cards I want and what I want to use them for. Well I'm 21 and in college with a relatively low income and my story is a little unique. I feel I've gotten lucky because at first (only in mid-August) my own bank wouldn't issue me a credit card due to no credit history, however after calling and saying my family and I had been with them my whole life they reconsidered to a low 500 limit to help me get started.

I thought this was awesome and a great start for me to use for a year to build my history then apply for the ones I really wanted. However maybe 5 days later a Discover More (one of the ones I wanted) pre-approval came in the mail for me even before I received my card from my hometown bank in the mail (who had previously denied me a week ago for lack of history), went online and got accepted for it.

So after having my bank's card and the More for about a month, one day I just decided to apply for the other cards I wanted that I was originally going to wait a year to apply for, but thought that applying now just to see wouldn't change anything for me in the future since the inquiries would drop off by the next time I applied. Well to my surprise, I was approved for the Chase Freedom, Citi Forward, and the PenFed Platinum Rewards cards, each with decent limits for me (not the lowest of low) but still not prime limits which makes perfect sense for my income.

So August for me went:

- Denied by my own bank for having no credit history
- Accepted by my own bank for a card with 500 limit to build credit
- Accepted for Discover More via mail offer

September like this (all over 2 days):

- Accepted for Chase Freedom via online app
- Accepted for Citi Forward via online app
- Accepted for PenFed Platinum Rewards via online app

Now I am able to let these inquiries fall off and apply for the others on my list when my income raises as well next summer getting out of school:

- US bank Cash +
- AmEx Blue Cash Everyday


Thanks for listening to the long post but I just found my whole situation kind of odd based on other situations that I've read.

My question is that since I am getting most of the cards I want right away based on my low income for the time being, is there a good chance that these cards will grow on me based on my income when it increase? I only charge a certain % to these cards based on their CL's and that won't change with making more money so how will the company's know I will be able to spend more money basically? Do I just have to request CLI's every 6-12 months or so? I have heard of some companies giving CLI's but then stop at a certain point and I didn't want that to happen vs. if I would have waited until I actually had the income to get the good cards and CL's right away. I hope I didn't make a mistake!

*TIP*: Also another thing I found out is I helped a friend get the Discover More about 2 weeks after I did and then we applied for the Freedom the same night a few weeks later together and I was accepted while he was denied for lack of history (we've both had 1 month history, they just haven't had a statement with Discover yet and I had) and when he called the recon at Chase, right after they said he was denied he mentioned having the Discover More card for a short time and wanting to get and use the Freedom for the better rewards and instantly after mentioning that he had the Discover More card the conversation went from an automatic denial to a future approval once they mentioned to get a statement from discover and pay it off (proving you have the More card) and then to call back and Chase would approve him for the Freedom. I'm guessing this is because the two cards compete with one another, so if one is easier to get for you, it could be a gateway into what you really want! (In my experiences and opinion of course)
Travel 3x, Groceries + Gas 2x: [color=Orange"]AmEx PRG[/color] (Closed)
Restaurants + Travel 2x: [color=navy"]Chase Sapphire Preferred[/color]
Groceries 3%, Gas + Department Stores 2%: [color=blue"]AmEx BCE[/color]
Dining + Entertainment 2x: [color=navy"]Citi Thank You Preferred[/color]
Hotels 5x: [color=Black"]Chase Marriott Rewards Premier[/color]
Rotating 5%: [color=darkorange"]Discover It[/color], [color=blue"]Chase Freedom[/color]
Restaurants 5x: [color=lime"]Citi Forward[/color]
Gas 5%: [color=gray"]PenFed Platinum Rewards[/color]
Future: [color=red"]US Bank Cash +[/color]


hematino
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Postby hematino » Tue Sep 25, 2012 6:37 pm

Nice job on the approvals! Discover More and Freedom and PenFed Platinum Rewards are all awesome financial tools, and Forward is decent too if you don't mind low point value. I personally think it's better to get multiple cards at once when you have a short credit history like you have. The reason I think this is that every time you open a credit card, it lowers your average account age which in turn lowers your credit score. The cards you opened all seem to be cards to keep for the long run, and once these accounts mature, opening anything in the future will not hurt your average age nearly as much as if you had only had one aged account. While the inquiries will hurt you a little, the boost you get from your utilization rate should outweigh the inquiry negatives. Your history is so short that your scores should barely be affected by the short length of time that you opened those accounts in.

FYI it takes two full years before hard inquiries fall off any credit report, although the general consensus is that they stop adversely affecting you after a year.

Something I'd be cautious about Not sure what your yearly income is, but you did say it is low. Also not sure what kind of limits you were granted by the new cards. Be careful because sometimes banks won't issue credit at all if they think you have too much available credit compared to your income. I can attest cause I've been turned down for "sufficient unsecured credit for income" by a couple of them. I make around 45k a year (low compared to a lot of the regulars of this forum), and my credit lines total around 60k.
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WS6R6
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Postby WS6R6 » Tue Sep 25, 2012 10:28 pm

Thank you for the reply. And yes I mean low for sure, only around 9k income a year and I've got credit for 9.1k. So I am at my limits now for recieving cards but I was wondering if when I'm done with college & my income goes up from what it is, how should I go about getting the better limits on my current cards to more mirror my future income while not charging any more to my cards than I do now since I only use and will continue to use a certain % each month and pay it all off when I get the statement. I basically didn't know since I'm getting some of the cards I wanted while still having a low income so I'm getting low CL's for now. Thanks again for any advice
Travel 3x, Groceries + Gas 2x: [color=Orange"]AmEx PRG[/color] (Closed)
Restaurants + Travel 2x: [color=navy"]Chase Sapphire Preferred[/color]
Groceries 3%, Gas + Department Stores 2%: [color=blue"]AmEx BCE[/color]
Dining + Entertainment 2x: [color=navy"]Citi Thank You Preferred[/color]
Hotels 5x: [color=Black"]Chase Marriott Rewards Premier[/color]
Rotating 5%: [color=darkorange"]Discover It[/color], [color=blue"]Chase Freedom[/color]
Restaurants 5x: [color=lime"]Citi Forward[/color]
Gas 5%: [color=gray"]PenFed Platinum Rewards[/color]
Future: [color=red"]US Bank Cash +[/color]

WS6R6
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Postby WS6R6 » Tue Sep 25, 2012 10:30 pm

Sorry for the stupid little smile by my post, I didn't know what I was doing when I made the thread. Also, off topic but how does everyone edit their signature to where you've got some info under each of your posts? I can figure it out on other forums but can't seem to find it on here. Thanks
Travel 3x, Groceries + Gas 2x: [color=Orange"]AmEx PRG[/color] (Closed)
Restaurants + Travel 2x: [color=navy"]Chase Sapphire Preferred[/color]
Groceries 3%, Gas + Department Stores 2%: [color=blue"]AmEx BCE[/color]
Dining + Entertainment 2x: [color=navy"]Citi Thank You Preferred[/color]
Hotels 5x: [color=Black"]Chase Marriott Rewards Premier[/color]
Rotating 5%: [color=darkorange"]Discover It[/color], [color=blue"]Chase Freedom[/color]
Restaurants 5x: [color=lime"]Citi Forward[/color]
Gas 5%: [color=gray"]PenFed Platinum Rewards[/color]
Future: [color=red"]US Bank Cash +[/color]

WS6R6
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Posts: 60
Joined: Tue Sep 25, 2012 11:52 am
Location: Kansas

Postby WS6R6 » Fri Sep 28, 2012 9:25 pm

Anybody else have luck getting good credit limit increases with chase, discover, citi, or penfed? Did you ask for the limit increases or were they just given to you over time? And about how much utilization were on your statements when you were getting auto CLI's? I always keep mine no higher than 10% and I've heard that this helps not only your score but also with getting CLI's vs coming close to maxing your card. Thanks
Travel 3x, Groceries + Gas 2x: [color=Orange"]AmEx PRG[/color] (Closed)
Restaurants + Travel 2x: [color=navy"]Chase Sapphire Preferred[/color]
Groceries 3%, Gas + Department Stores 2%: [color=blue"]AmEx BCE[/color]
Dining + Entertainment 2x: [color=navy"]Citi Thank You Preferred[/color]
Hotels 5x: [color=Black"]Chase Marriott Rewards Premier[/color]
Rotating 5%: [color=darkorange"]Discover It[/color], [color=blue"]Chase Freedom[/color]
Restaurants 5x: [color=lime"]Citi Forward[/color]
Gas 5%: [color=gray"]PenFed Platinum Rewards[/color]
Future: [color=red"]US Bank Cash +[/color]

Money card
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Postby Money card » Sun Sep 30, 2012 12:36 am

My Discover was given to me. I suppose over the course of the years of having there card and paying my bills in full.
one year me and my cousin went on a cruise, I charged it on my Discover , I guess they decided to give me a higher limit.

at that time I don't know what the credit limit to monthly bill was.

Gamma
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Postby Gamma » Sun Sep 30, 2012 12:57 am

Wow, that's pretty lucky of you to have gotten some great cards in that short time. I also had a similar experience of that, just wished PenFed approved me :( I've had Discover and Chase for almost 11 months now and they have yet to give me a auto CLI. I would actively use them monthly (about 1500/mo) and PIF monthly. I have tried to get an increase, but everytime I do, they require a hard pull, which at that point I decline. Had Citi for a year and a half and they have not given me any increases at all. I tried and again, they would ask for a hard pull. I quit trying now and just sticking to my current limits. I'll try again maybe with a hard pull sometime next year.

WS6R6
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Postby WS6R6 » Mon Oct 01, 2012 11:30 pm

Thanks, it even surprised me so I know I'm lucky in this case so now I just want to keep in good standing with these banks. That sucks to hear about the lack of auto CLI's for you with all the same companies but thanks for the good info. Good luck with your future attempts to get in with PenFed and also to get some CLI's!
Travel 3x, Groceries + Gas 2x: [color=Orange"]AmEx PRG[/color] (Closed)
Restaurants + Travel 2x: [color=navy"]Chase Sapphire Preferred[/color]
Groceries 3%, Gas + Department Stores 2%: [color=blue"]AmEx BCE[/color]
Dining + Entertainment 2x: [color=navy"]Citi Thank You Preferred[/color]
Hotels 5x: [color=Black"]Chase Marriott Rewards Premier[/color]
Rotating 5%: [color=darkorange"]Discover It[/color], [color=blue"]Chase Freedom[/color]
Restaurants 5x: [color=lime"]Citi Forward[/color]
Gas 5%: [color=gray"]PenFed Platinum Rewards[/color]
Future: [color=red"]US Bank Cash +[/color]

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Snowman
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Postby Snowman » Mon Oct 01, 2012 11:38 pm

Congrats to you my friend. If my income had gone up 2-3X then what I make currently, I would definitely apply. I got a second job so hopefully I will apply sometime in Dec or nest year for another card due to my history being pretty short. Congrats on getting some pretty nice cards though.
Bank Of America: BankAmeriCard Cash Rewards-4.2k
Citi: Forward-4.5k American Airlines Advantage Platinum Select World Elite MasterCard 9/6/15-4K
Discover: More-7k
Amex BCE.2k- Amex SPG-5k
Chase: Freedom-5kSouthwest Rapid Rewards Plus- 3.6k
Capital one: Venture one-10,000, Visa Signature.



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