How long should I wait to apply for a rewards card after paying off a debt?

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5 posts
haikuginger
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Postby haikuginger » Sat May 10, 2014 6:09 pm

Wait until a week after the statement cuts that reflects the balance having been paid off.


takeshi
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Postby takeshi » Mon May 12, 2014 10:22 am

actorpat wrote:Is there a time-frame of how long I should wait to apply (for my credit reports to reflect not having any debt)?

However long it takes for your creditors to report and for the CRA's to update. A week after statement end is probably safe. If you want to be sure you can use a CMS to verify reported balances. Or wait longer.

actorpat wrote:I'm very interested in applying for the Chase Sapphire Preferred card, but of course want to get the best interest rate and limit I can.

CSP is a fixed 15.99% currently though your limit can definitely be affected by your utilization.

actorpat wrote:Is there a "best time" to apply for certain cards?

Yup. When one's credit is in best shape. Is utilization your only problem?

tigerowl06
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Postby tigerowl06 » Tue May 13, 2014 8:06 pm

Luckily, it's just a function of your reported balance right now. They do not care what your past utilization was. Your current lenders do, but the new one won't. So as soon as your zero balances report, you are good to pull the trigger on the app.
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MemberSince99
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Postby MemberSince99 » Tue May 13, 2014 8:20 pm

Anecdotal evidence suggests that the odds are slightly better when drapping.

Battery111
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Postby Battery111 » Tue May 13, 2014 8:39 pm

I would also ask why APR is a concern for you. I get limit, but even if the CSP had a range of APRs why would you care unless you plan on carrying a balance in the future? I ask because I'm not aware of any rewards card out there where carrying a balance still makes the points worth it. Remember that. If you carry a balance, your points are worth less than the interest you pay.
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