credit rating questions (thinking of getting a new cc)

I guess the main starting questions would be:

1) Are you going to be applying for a home loan or anything big like that in the near future? (If so, maybe wait until AFTER that process is done with then apply for your credit card)

2) Why do you want another credit card? Is it just to get rewards, or other reason?


According to myFICO, your score is comprimised of the following:
35% payment history
30% utilization
15% established history
10% inquiries
10% mix of credit (loans, credit cards, etc)


So while yes, a new card will ding your score b/c of the inquiries and the "new" average age of your accounts, you can offset that in the near future with the increased credit (presumably lowering your utilization %, but yours is nicely low right now anyways) and your continued good payment history.

If you are not applying for a loan anytime soon, and you want a new card, dont worry about the inquiry ding and just apply! If you are getting a mortgage soon that's a different story then.

Dont know your situation, but if you're like me and live a relatively common suburbia life (home, kids, etc) i HIGHLY recommend the Amex Blue Cash preferred. Has an annual fee ($75 i think) but you get 6% back at grocery stores and 3% back at gas, 1% back everywhere else. Easily, easily cover the fee if you grocery shop a lot (and you can buy gift cards at the grocery store )

Quote from Jcaelum : I guess the main starting questions would be: 1) Are you going to be applying for a home loan or anything big like that in the near future? (If so, maybe wait until AFTER that process is done with then apply for your credit card) 2) Why do you want another credit card? Is it just to get rewards, or other reason? According to myFICO, your score is comprimised of the following: 35% payment history 30% utilization 15% established history 10% inquiries 10% mix of credit (loans, credit cards, etc) So while yes, a new card will ding your score b/c of the inquiries and the "new" average age of your accounts, you can offset that in the near future with the increased credit (presumably lowering your utilization %, but yours is nicely low right now anyways) and your continued good payment history. If you are not applying for a loan anytime soon, and you want a new card, dont worry about the inquiry ding and just apply! If you are getting a mortgage soon that's a different story then. Dont know your situation, but if you're like me and live a relatively common suburbia life (home, kids, etc) i HIGHLY recommend the Amex Blue Cash preferred. Has an annual fee ($75 i think) but you get 6% back at grocery stores and 3% back at gas, 1% back everywhere else. Easily, easily cover the fee if you grocery shop a lot (and you can buy gift cards at the grocery store )

1. maybe in about 3 years (mortgage loan). it will be pretty unlikely before then.

2. the rewards.

There are different kinds of rewards, primarily miles or cash back. Are you interested in traveling or just getting % back from each purchase?

A little off topic from above, but I would recommend having at least 1 Amex to take advantage of their various twitter/fb specials and other random promotions that happen though out the year.

Quote from jonnyd13 : There are different kinds of rewards, primarily miles or cash back. Are you interested in traveling or just getting % back from each purchase? A little off topic from above, but I would recommend having at least 1 Amex to take advantage of their various twitter/fb specials and other random promotions that happen though out the year.

i'm leaning towards cash back. i mean i like travelling, but i'd prefer just getting cash and then possibly using that cash for travel (even if it means not getting as much travel bang for the buck).

that said, i kinda want to get that sony rewards card that gives you a $50 psn credit right away when you sign up.

Quote from thikthird : i'm leaning towards cash back. i mean i like travelling, but i'd prefer just getting cash and then possibly using that cash for travel (even if it means not getting as much travel bang for the buck). that said, i kinda want to get that sony rewards card that gives you a $50 psn credit right away when you sign up.

Don't sign up for a credit card for a $50 credit. I'd shoot for a $400-$500 sign up bonus minimum. Chase Sapphire Preferred jumps out at me. The barclay's NFL card is another. Chase Sapphire Preferred will have better overall benefits but with an annual fee.

The USbank cash+ for cashback is great but doesn't have a great sign up bonus.

Quote from bta15 : Don't sign up for a credit card for a $50 credit. I'd shoot for a $400-$500 sign up bonus minimum. Chase Sapphire Preferred jumps out at me. The barclay's NFL card is another. Chase Sapphire Preferred will have better overall benefits but with an annual fee. The USbank cash+ for cashback is great but doesn't have a great sign up bonus.

does chase sapphire have rewards beyond the sign up bonus? does it matter that i already have one chase card?

Applying for credit does ding your credit score, but only in the short term, so I wouldn't sweat it.

Agree with the above, a $50 bonus is pretty weak. Google "credit card promos" or "credit card signup offers" and browse through a couple of the pages to see current promotions. Most promotions change throughout the year

There is a Barclays NFL Visa card offering $400 back after $1000 spent in 90 days, but other than that the card is useless imo unless you're buying a bunch of overpriced NFL licensed stuff.

Depending on what your spending habbits are, BoA and Amex both offer a 1-2-3% cb card with no fee. US Bank has one that let's you choose your 5% category. Discover and Chase both have a rotating 5% cb card with 1% on all other purchases. There's a 2% cb on everything card floating around somewhere out there.

Quote from thikthird : does chase sapphire have rewards beyond the sign up bonus? does it matter that i already have one chase card?

Chase sapphire preferred give 2% on travel and dining and 1% on everything else.

Chase will issue you multiple cards. I have 3 currently, as long as its been like 30-60 days since you last application with them you will be good.

I have chase sapphire preferred (annual fee) and chase freedom (no annual fee). You can combine their points, chase freedom has rotating 5% categories. Chase (Ultimate Reward) points can be used for either cashback or travel by transferring to their mileage partners at 1:1 (southwest, united, british airways, korean air, hyatt, etc.)

Quote from jonnyd13 : ...There's a 2% cb on everything card floating around somewhere out there.

The fidelity amex gives 2% on everything, the visa does too after a certain amount of spend.

I'm a big proponent of getting cards with no annual fees. If you have 3 or 4 different rewards cards (which is a good idea for someone in your situation) then you'll be splitting your expenses between the cards, so the fees lower the rewards significantly. Then if later on you get a different card that replaces your rewards on another card, you either have to cancel the old card or get hit with the annual fee.

With no annual fee cards, you can reap the rewards as long as you want, change cards when you want, and not have to worry about closing accounts or whether the fee is worth it.

As for the cards, here are my picks-

1. Chase Freedom - 1% cash back on everything, 5% on rotating categories (different categories each quarter).

2. Discover It (used to be Discover More, basically the same card) - Same as Chase Freedom, but with different categories (used to have a minimum spend to get to 1% on everything, but I think now it's a flat 1% on everything that doesn't fall into your 5% categories). Good options for rewards, and ShopDiscover gets you much more cash back on a lot of places if you go through the ShopDiscover site first. Chase has a similar program, but I think Discover is slightly better there.

3. Amex BlueCash Everyday - 3% groceries, 2% gas, 1% everything else. Everyone buys food, and gas is always good if your other cards don't give you more than 2%.

4. Whichever Citi card is the no-fee rewards card. Forward, maybe? Whatever. It's another card with a slightly different group of rewards.


Other things to consider, which a lot of people either don't know about or forget - some cards offer additional perks. If you buy something with a Discover card, for example, you get double warranty on electronics, price protection (if the price drops within 30 or 90 days.. can't remember which, they refund you the difference), easy returns, travel insurance, and no foreign transaction fees. I'm sure other cards have similar perks, but Discover's are pretty good.

Hope that helps.

Quote from DWad : I'm a big proponent of getting cards with no annual fees. If you have 3 or 4 different rewards cards (which is a good idea for someone in your situation) then you'll be splitting your expenses between the cards, so the fees lower the rewards significantly. Then if later on you get a different card that replaces your rewards on another card, you either have to cancel the old card or get hit with the annual fee. With no annual fee cards, you can reap the rewards as long as you want, change cards when you want, and not have to worry about closing accounts or whether the fee is worth it. As for the cards, here are my picks- 1. Chase Freedom - 1% cash back on everything, 5% on rotating categories (different categories each quarter). 2. Discover It (used to be Discover More, basically the same card) - Same as Chase Freedom, but with different categories (used to have a minimum spend to get to 1% on everything, but I think now it's a flat 1% on everything that doesn't fall into your 5% categories). Good options for rewards, and ShopDiscover gets you much more cash back on a lot of places if you go through the ShopDiscover site first. Chase has a similar program, but I think Discover is slightly better there. 3. Amex BlueCash Everyday - 3% groceries, 2% gas, 1% everything else. Everyone buys food, and gas is always good if your other cards don't give you more than 2%. 4. Whichever Citi card is the no-fee rewards card. Forward, maybe? Whatever. It's another card with a slightly different group of rewards. Other things to consider, which a lot of people either don't know about or forget - some cards offer additional perks. If you buy something with a Discover card, for example, you get double warranty on electronics, price protection (if the price drops within 30 or 90 days.. can't remember which, they refund you the difference), easy returns, travel insurance, and no foreign transaction fees. I'm sure other cards have similar perks, but Discover's are pretty good. Hope that helps.

thanks it does. i don't really want to deal with annual fees even if they mean i get slightly better rewards. i mean i have one cc that i haven't used in like 2 years and i know if i had multiple reward cards one or more would fall into disuse and just cost me money. i'll be looking into those cards for when i do open a new one.

I just got another card a few days ago. Went down 3 points...score is in the high 700s