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Help with appoRama starting with Chase- ink/saphire

leiff 829 50 August 26, 2016 at 07:26 PM
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Last Edited by leiff August 26, 2016 at 07:40 PM
I'm helping my mom Apply for credit cards. After many years without any credit cards ; starting with last year she's starting to build her credit back up. she has discover with 6k limit, 2 amex personal and 1 amex buiz, and a chase freedom she got two months ago. Looking at her discover website it shows her fico is at 690. it's been hovering at the same amount since she started building her credit back up last year. I was surprised her fico hadnt increased any since she pays off her balances each month and she puts on average $3000 through these accounts each month.
Anyways, after researching Chase's 5 - 24 rule it seems we should apply for Chase first, butt does she have a chance with 700 fico? I'd like to get her a Chase ink due to the 5% internet cell phone cable bill cash back discount. Can we pay other family members cable bills and get the 5% off? If so this discount will more than mitigate $100 annual fee for this card. id like to apply for the Chase Sapphire- the new one with 100k bonus or the preferred one with the 50k bonus. if these get accepted I'd like to apply for Chase 1.5 unlimited card to use as daily spender and transfer points to the Chase ink for higher Redemption value. All these Chase applications i assume would be best to apply for on the same day to reduce credit hits.
After Chase id like to apply for the blue preferred Amex for the 6% groceries cashback. she spends at least 3000 a year $300 a month at grocery stores so that should again mitigate the annual fee for this card. us bank cash + card looks good for a %5 cb choose your catagory card. Good chance of getting accepted for this? Any other card recommendations for sign up bonus or other reasons? Any other moves to make before submitting applications to increase acceptance chance? like requesting credit line increase? She has only a small balance owed among her accounts which I believe is best before submitting applications. Thanks so much for reading!

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#2
I'm sure you checked out doctor of credit. One article I found kind of interesting:
http://www.doctorofcredit.com/cap...ing-rules/

I keep getting denied for new credit cards. So no more CC churning for me for a while. I have been getting success with the bank bonuses though. Was just reading article that one guy got his CC score to 850 by taking out a personal loan and a car loan. He had always paid cash for cars. Took him 2 years but he got to 850. GL.

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#3
Fico score is only one part of it. Chase may look at 4 cards in one year and flag it as high risk already.

I am going to ask a lot of questions (work hazard), but they should help you figure out some an approach rather just saying "that looks good, let's get it."

Has she been declined for any cards yet? I think Chase's 5/24 is CC applications, not approvals.

Which of her cards has an annual fee? You want to make sure she can recoup the costs of those every year if you decide to keep them after the first. I am assuming the AMEX business at least. What about the personal? If you are going to get the credit card and drop it before the next year to avoid the annual fee, she will continue to get hit in her credit scores. Canceling cards next year leads higher utilization (which may be negligible) , and a low age of accounts.

Does your mom have any spending targets on cards right now? Do any of them require a $1,000+ spend in the month or two? They sound old enough that the spends should be over.

On the flip side, how much does she spend a month? Can she easily hit the $4,000 in 3 months that is required for the Chase Sapphire Reserve to be worth it -- the preferred requires a $3,000 spend in 3 months?

Does you mom like to travel, does she eat out a lot, stay at a lot of hotels? If not, the two Chase Sapphires may not be the ones to go for right away, if your target is to build credit. The Sapphires are great travel cards, for people who don't travel there are probably better cards. (That said $1,000 cashback is great for the first year, but after that you will take a hit if/when you cancel it -- the $450 annual fee is hefty). You say she spends $3,000 + $300 a month on groceries (which I assume that is not included in the $3,000). So not sure she can hit the Sapphire Reserve's Spend target.

What kinds of things does your mother purchase often? Their may be some great cards for her to keep as an anchor (never get rid of) while you churn others. You mentioned groceries and the AMEX 6% on groceries card. That might be the last card you should get for a while.

To directly answer some of your questions:
Does she have a chance with a 700 Fico? Yes she does, read the reserve thread and there are some around that number getting it. Ink and Sapphire Preferred are "lesser" cards so they would be easier than the reserve.

Can she pay for other's cable bills and get 5% on the Ink? Yes, but make sure she gets paid back from whomever's bills she is paying. If she doesn't want to get paid back... I'll let her pay my cell and internet bills too! Smilie
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Last edited by mestizo122 August 27, 2016 at 07:28 PM
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#4
Quote from mestizo122 View Post :
Fico score is only one part of it. Chase may look at 4 cards in one year and flag it as high risk already.

I am going to ask a lot of questions (work hazard), but they should help you figure out some an approach rather just saying "that looks good, let's get it."

Has she been declined for any cards yet? I think Chase's 5/24 is CC applications, not approvals.

Which of her cards has an annual fee? You want to make sure she can recoup the costs of those every year if you decide to keep them after the first. I am assuming the AMEX business at least. What about the personal? If you are going to get the credit card and drop it before the next year to avoid the annual fee, she will continue to get hit in her credit scores. Canceling cards next year leads higher utilization (which may be negligible) , and a low age of accounts.

Does your mom have any spending targets on cards right now? Do any of them require a $1,000+ spend in the month or two? They sound old enough that the spends should be over.

On the flip side, how much does she spend a month? Can she easily hit the $4,000 in 3 months that is required for the Chase Sapphire Reserve to be worth it -- the preferred requires a $3,000 spend in 3 months?

Does you mom like to travel, does she eat out a lot, stay at a lot of hotels? If not, the two Chase Sapphires may not be the ones to go for right away, if your target is to build credit. The Sapphires are great travel cards, for people who don't travel there are probably better cards. (That said $1,000 cashback is great for the first year, but after that you will take a hit if/when you cancel it -- the $450 annual fee is hefty). You say she spends $3,000 + $300 a month on groceries (which I assume that is not included in the $3,000). So not sure she can hit the Sapphire Reserve's Spend target.

What kinds of things does your mother purchase often? Their may be some great cards for her to keep as an anchor (never get rid of) while you churn others. You mentioned groceries and the AMEX 6% on groceries card. That might be the last card you should get for a while.

To directly answer some of your questions:
Does she have a chance with a 700 Fico? Yes she does, read the reserve thread and there are some around that number getting it. Ink and Sapphire Preferred are "lesser" cards so they would be easier than the reserve.

Can she pay for other's cable bills and get 5% on the Ink? Yes, but make sure she gets paid back from whomever's bills she is paying. If she doesn't want to get paid back... I'll let her pay my cell and internet bills too! Smilie
She doesn't eat out travel or use hotels allot no. The Chase Sapphire or Reserve card would be for sign up bonuses only and not kept past first year. Her existing Amex gold biz/personal cards will also be cancelled at the end of the introductory year but as you say this may hurt her credit so we'll do our credit card applications first. No she hasn't been declined for any cards yet lately. I think I'll have her apply for the ink card business right now and if that gets accepted I'll immediately apply her for the chase 1.5 CB unlimited card for her permanent everyday spender since these two cards seem to complement each other with unlimited points being transferred to the ink card which has higher Redemption value through travel. The ink card will be a keeper since the 5% cable/cell phone discount makes this card worth annual fee. She will have only 3 months to spend $5,000 to get the ink 60000 bonus points so if she gets accepted for these we'll put a hold on more applications until she reaches 5K Target. Then in 3 months I'll have her apply for Chase saphire for churning purposes since she should be just under the five card limit for chase because I didn't think her business card counted, before going after her 6% Amex blue Preferred Card which would be a keeper for her. sound decisions? If she gets denied 4 Chase Ink I was thinking about then immediately applying for Chase Sapphire for churning and if she gets denied for that then I would give up on Chase and instead apply her for Citi 2% cash back card for an every day spender.
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Last edited by leiff August 27, 2016 at 08:23 PM
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#5
You seem to have conflicting goals here. Initially you said you wanted to increase her credit score, but churning is likely to drive her score down. Do you want to raise her score or make some quick cash with the signup bonuses? You're not going to accomplish both at the same time.
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#6
First priority is to help establish cards with Maximum cash back or equivalent bonuses . Because of chases rule I know we should apply to chase first. No, I'm not against churning at the cost of credit score if its a good deal.
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#7
I seem to recall people saying they downgraded the sapphire to the unlimited 1.5 CB Chase card, so instead of applying for ink and then the unlimited card, would it be better to apply for ink and if accepted - then the Sapphire with the intent to downgrade Sapphire to the Unlimited card later? I would forfeit the $150 bonus for opening the unlimited card but in my case this might be worth it? with this strategy I wouldn't be able to apply for sapphire and ink at the same time though because target spending requirements would be too high. Compared to Ink/unlimited combo which I could apply together at the same time; and as I understand it there are advantages to apply for multiple cards at the same time
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Last edited by leiff August 27, 2016 at 11:43 PM
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