Applying While Carrying a Balance?

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samhradh
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Applying While Carrying a Balance?

Postby samhradh » Sat Dec 28, 2013 9:48 pm

Has anyone successfully applied for cards while carrying a balance?

I am carrying a balance on my Freedom thanks to 0% APR. Current balance is ~$2400 (CL $12.4K). If I'm doing my math right, the balance is a little over 5% of my CL. I've been paying over the minimum every month and my credit report is spotless.

The cards I am thinking of app'ing for will have a high sign-up bonus and/or be a high level rewards card. Mostly looking at Citi (Dividend Plat) and Chase (CSP, Ink Bold or +, Marriott Premier) right now.

I read a couple old threads where posters mentioned approvals while carrying but am curious about more recent history.
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).


mathman314
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Postby mathman314 » Sat Dec 28, 2013 10:09 pm

I applied for my Discover card while a $410 balance is reported on my latest credit report. I got approved. CL was 2250 on that card with a balance so 20% UTL. Reading that your credit report is spotless, I doubt that they'll find anything that they would not like.
Cards:
1FBUSA: 5.75k
Discover IT (for students): 4.6k
Chase Freedom (signature): 5k
Target REDcard: 1.5k
AmEx BlueCash Everyday: 5.5k

FICOs:
TU - 785 (December 2015)

samhradh
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Postby samhradh » Sat Dec 28, 2013 10:24 pm

Thanks! To clarify, when you app'd, was it a balance carried or reporting? My balance is being carried. Or am I mistaken in thinking these are two different things?
Citi Forward ($10.1K), AmEx Blue Cash Everyday ($30K), Chase Freedom ($12.4K), Discover it ($5.5K), Barclaycard Arrival ($12.5K), L.L. Bean Visa ($5K). FICO 806 (TU), 812 (EQ), 806 (EX).

mathman314
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Postby mathman314 » Sat Dec 28, 2013 11:02 pm

It was being reported & carried.
If I'm not mistaken, the amount that is on the last statement that one recieves is the number that is seen by the credit bereaus. So theoretically, one could have their statement say they owe some miniscule amount and then afterwards carry a big balance. And therefore, that miniscule amount would show up as the debt on the credit report. Lenders can only see what the credit report shows. Did this clear up anything or did I not answer the question
Cards:
1FBUSA: 5.75k
Discover IT (for students): 4.6k
Chase Freedom (signature): 5k
Target REDcard: 1.5k
AmEx BlueCash Everyday: 5.5k

FICOs:
TU - 785 (December 2015)

MemberSince99
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Postby MemberSince99 » Sat Dec 28, 2013 11:15 pm

Yes. This past month I carried 8 dollars on my Associated card (totally by accident I simply wasn't able to pay before that charge hit on the statement date).


However it worked out in my favor. You see, Citi REQUIRES that you carry a balance on a card, any card, to be approved. I was actually declined by them in the past for not carrying a balance on a credit card. So for that lender you at least meet that!


Just an FYI to everyone really so people don't waste hard pulls if you are the PIF type.

daniel2304
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Postby daniel2304 » Sat Dec 28, 2013 11:40 pm

I don't think carrying a balance a problem, in fact, bank would like you to carry balance and slip (amen, consider it hasn't been said).
I just got approved for the It Card and Dividend (both with 4K5). The thing on Dividend is they cap your reward at $300 each year, no matter how much you have spent (weird). Another thing is when I applied, the card application said Citi Dividend Visa Platinum Select, but when I received the mail, it only was Citi Dividend Visa. I wonder if they did something such as "automatically qualified" for a lower level card. I'll wait until received the card to see, otherwise I'll call them. The Dividend card has the chip looks kinda cool.

Having said of coolness, I was surprised that the It card looks so cool, without name or number in front. It looks so slim and shiny. It also came in a elegant and simple package. I love it already. Too bad I found that my Discover More and Discover It will be completely separated and different and cash back couldn't be transferred between 2 cards. :(
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

MemberSince99
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Postby MemberSince99 » Sun Dec 29, 2013 8:03 am

Daniel do you have both cards? (More and IT)? I'm curious if so why you would keep the More as IT seems to be a better product in terms of rewards?

daniel2304
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Postby daniel2304 » Sun Dec 29, 2013 9:35 am

Member, I had the More since 2011 together with Chase Freedom. I think they have the identical reward program with 5% cash back. Having both can help maximizing the quarterly reward ($3,000 instead of $1,500). This year Discover also challenged me to earn $250 cash back bonus by spending more than $1,500 in 5 consecutive months. I did win by shifting all my daily spend and other major spending like tuitions, health insurance and car insurance premium.

By the way, did you have any issue with Dividend like I had in my post?
All my posts are my opinions. All my posts mentioned "you" are merely for discussion-purpose only. No advice is given in any post at any time. It is also impossible for me to put effort to verify every statement that anyone has given.

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

Postby MemberSince99 » Sun Dec 29, 2013 10:54 am

I don't know, I haven't received the card yet. They just approved right before Christmas.

takeshi
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Postby takeshi » Sun Dec 29, 2013 7:27 pm

samhradh wrote:Has anyone successfully applied for cards while carrying a balance?

Getting approvals while carrying a balance isn't necessarily difficult (depends on one's credit) and many have. Many have also received denials applying while carrying balances. I've been approved for the Freedom, PenFed Platinum Cash Rewards, Discover it & Ink Plus since I started carrying a balance on a card due to an introductory 0% offer. The Freedom was issued with 2 cards carrying balances and the Discover it was issued with 3 cards carrying balances (and has the lowest limit and highest APR of all cards).

It's not just a matter of carrying balances or not but utilization. Odds for getting desirable credit limits and APR's will drop as your utilization increases. 30% is the generally recommended max. Optimal for many is somewhere around 10% (possibly more or less depending on credit). It's also not just overall utilization but individual utilization that matters. At 5% overall and 19% on your Freedom I doubt you'll have problems from a utilization standpoint but it really depends on the creditor as well.

samhradh wrote:I read a couple old threads where posters mentioned approvals while carrying but am curious about more recent history.

Keep in mind that person A getting approved at X% utilization doesn't necessarily mean that person B will get approved at X% utilization. Credit is never about just one single factor.

samhradh wrote:To clarify, when you app'd, was it a balance carried or reporting? My balance is being carried. Or am I mistaken in thinking these are two different things?

They are two different things but a balance carried will end up reported. As stated above, most report at statement end.



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