Stuck on whether to apply for new CC

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shorty88
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Stuck on whether to apply for new CC

Postby shorty88 » Fri Aug 23, 2013 6:05 pm

Hey everybody!

I haven't applied for any cards since I was 18 and I'm 25 now with the exception of applying for credit last year for Dental Care (3 INQ). Unfortunately, I was denied each time due to delinquencies.There was an error for a collection from Verizon on my file, but I had that deleted in December. I was too nice in letting a family member use my credit and it backfired, which led me to two collections on my credit from Tmobile and Time Warner. Both are about two years old. I'm not sure about my current credit scores but according to my denial letters for dental care as of last year..my scores are 613 EQUIFAX and 637 EXPERIAN. I don't know my score for Transunion. I plan on getting them all though.


Over the past month I have received several CC offers in the mail Amex Green (twice), Citi Diamond Preferred (twice), and Cap One Journey.I plan on paying off Tmobile next month and getting my Cap One card balance down to at least 250 as well. Do you guys think I should wait until I get my balances down before applying for a new card or I should go for it? Any suggestions on a card I should go with?


Cards I have:
Capital One Platinum $430 /$500, 6/2006
Daniels Jeweler $0/ $246, 10/2006
Dell Preferred $1k/ $4k, 11/2006


shorty88
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Postby shorty88 » Sun Aug 25, 2013 8:25 pm

Any suggestions?

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otter
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Postby otter » Sun Aug 25, 2013 9:55 pm

Welcome to the forum Shorty...

I had an epiphany a while back about the likelihood of success one will have in applying for credit: Generally speaking, those who NEED credit usually don't get it. Those who DON'T NEED credit, usually get approved for credit.

What does that mean? The guy(or gal) who has a handful of cards which are all maxed out and struggles to make minimum payments on them every month, will probably be denied a new line of credit. Meanwhile, the guy who has credit limits totaling over $100,000, has six months savings, a large brokerage account(with a nice margin rate should he need it), and a large 401(k) which he could borrow from will likely be approved for the $20,000 card he doesn't need.

So should you apply for another card? Depends on what you plan on doing with that card. If you HAVE to max it out like the Cap One card you already have, then it will be counterproductive. If you plan on using it like a charge card, then I would say go for it(but do get the Cap One card down to below 30% utilization before applying for any more credit. Meanwhile, I would try to build up your cash reserves so that when you do apply for another dental loan, you can pay for it in cash even if you are denied. Bu then, though, your delinquencies will be further in the past and you will more than likely be approved.
In my Wallet:
  • Amex PRG NPSL[3-14, bd 91]
  • Sallie Mae MC $8000[1-14]
  • Chase Freedom $4700[1-14]
  • Discover It $2750[8-13]
  • BoA UCF Alumni Cash Rewards $5000 [3-15]
Sometimes in my Wallet:
  • GM BuyPower WEMC $5000[9-14]
  • Wells Fargo Propel 365 Amex $7000[4-14]
  • Barclaycard Arrival WEMC $7000[3-14]
  • BoA Better Balance $3000[2-15]
In my sockdrawer: Amex BCE $1000[10-13, bd 91], OCCU Duck $10000 [11-13], The Sportsman's Guide Visa $8000[8-14], Chase Slate $4000 [9-14]Delta Gold Amex $2000 [2-15 bd 91], Diners Club MC $20000 [10-14] Commerce Bank Visa $2000 [3-15] Citi Double Cash $1000 [3-15]
Total CL: $90450

thecentury303
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Postby thecentury303 » Mon Aug 26, 2013 12:53 am

IMHO, I think it might be better to request a credit report to see a whole picture of your credit first before deciding. You can get a free credit report at annualcreditreport.com
My family:
Capital One Cash Rewards for New Comer: $1500 (09/12)
Local Credit Union: $1,500 (10/12), Chase Freedom: $1,500 (04/13), Discover IT: $1,800 (04/13)
AMEX Gold Charge Card: NPSL (06/13), AMEX BCE: $6,000 (06/13)
Chase United Explorer: $6,000 (10/13), Chase Ink Cash: $3,000 (10/13), Barclays Arrival Platinum: $3,000 (10/13)

Robrus1
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Postby Robrus1 » Mon Aug 26, 2013 9:02 am

I'd say pay your cards off every month and make sure anything showing on your credit report has been paid. Give it time to report to the bureaus and give yourself time to let your current cards help your scores. If your scores are still about the same, you should wait. Pre-approval offers don't guarantee actual approval, and with those scores, approval is doubtful.
Amex Platinum
Amex BCP 21K
Amex SPG 5K
Barclaycard Arrival Plus WEMC 5K
Chase Sapphire Preferred 23.5K
Credit Union 10K
Discover IT 7.75K

takeshi
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Postby takeshi » Mon Aug 26, 2013 9:21 am

shorty88 wrote:Do you guys think I should wait until I get my balances down before applying for a new card or I should go for it?

Definitely. Utilization plays a significant role in your scoring. Get it down, make sure it's reported and then apply.

430/500 = 86%. You need to get the card's utilization much lower. Your overall utilization is just over 30% but the lower the better.

shorty88 wrote:Any suggestions on a card I should go with?

Give us something to work with. What are you looking for?

Midori
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Postby Midori » Mon Aug 26, 2013 9:32 am

Getting your Capital One utilization down to 50% before you apply for credit is a good start, but I'd get your balances taken care of completely before I even thought about getting another card. You're currently at 90% on one card and 25% on another. Are those separate from your Tmobile and TimeWarner collections?

The Amex Green has an annual fee of $95, waived the first year. If you're carrying balances of 90% and 25% utilization and are having trouble paying it down promptly, do you think going for a card with an annual fee is a good idea? Only revolvers can be PC'ed to revolvers, and charge cards to charge cards.

The Citi Diamond Preferred might be an interesting card for you. As a moderately established customer of their banking services (7 years), I expected them to be a little less suspicious of my app and a little more generous with their credit limits, but c'est la vie. :o)

Is the Journey a student card? Do you think you'll get a good credit limit from Capital One by trying to get a second starter card from them? I've heard you can only get two Capital One cards, and that they have two categories of cards... starter cards and competitive cards. If I ever wanted something like the Venture, one of the Quicksilvers, or a Spark card, I'd hold off. I'd also hold off until I had paid off my balance on my current cards and had established a track record of paying-in-full for a while.

shorty88
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Postby shorty88 » Tue Aug 27, 2013 11:15 am

Otter,

Thank you for taking the time out to respond to my post and your welcoming me to the board! :)

Basically, I want another card with a higher CL say $1000-$1500. I don't want any more credit cards after that. I don't think I could deal with any charge cards at the moment..I may get a little swiper happy and not to mention I would like to have a better job with more income to pay the balances off in full every statement.

shorty88
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Postby shorty88 » Tue Aug 27, 2013 11:18 am

thecentury303 wrote:IMHO, I think it might be better to request a credit report to see a whole picture of your credit first before deciding. You can get a free credit report at annualcreditreport.com


Thanks century. I already ordered my report..just waiting on it to come in mail.

shorty88
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Postby shorty88 » Tue Aug 27, 2013 11:22 am

Yeah I know my card's utilization is rather high. I'm definitely going to get it down to 250 this month and the next billing statement I will pay more than the minimum($25) to $75-$80 and not use the card at all while getting the balance down.



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