Credit card inquiries question

Discussion in 'General Discussion | Miles/Points' started by rylemdr, Oct 11, 2011.  |  Print Topic

  1. So I just recently applied for two Citi cards(75k miles each, visa and amex), and I read in a post that if I applied for both at the same time(or within a close time frame), that my 2 credit inquiries would be consolidated into one. My question is, what happens if I make 3(or more) inquiries in the same day from a bank or banks that use the same credit bureau in a very close timeframe(like within a few minutes)? Will my say, 4 or 5 credit inquiries be consolidated into one?

    I checked the info regarding Citi in creditboard's credit pulls info and it seems to me that Citi uses Experian in California. There is also this "Chase Sapphire Preferred" card that I want to apply for, but it seems Chase also uses Experian in California, and I wanted to apply for all three (citi visa, citi amex, chase) at the same time(but I did not, because I was not sure), that is why I came to ask this question.

    On a different topic, I read on frugaltravelguy.com that the best way to churn cards, one must pick 2 cards pulling from one credit bureau(say, experian), another 2 cards pulling from another(say, transunion), and yet another 2 cards that pulls from another credit bureau(say, equifax) every 90 days. I don't know if this still holds true though.

    but if it does,

    ..my other question is, are there any cards you can recommend for my 2 transunion and 2 equifax? I live in CA, 93308. It seems like all the good offers use experian, especially in California..

    Note: If you can answer a question but not another, I welcome your post anyway. Thanks to all who post for the help.
     
  2. airshadow
    Original Member

    airshadow Gold Member

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    Good (and well composed) questions - I'll defer to the experts but wanted to take a moment and extend you a warm welcome to MP!
     
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  3. Jimgotkp
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    Jimgotkp Gold Member

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    Welcome to MP!

    I'm not a credit card expert but I applied for all those cards as well during the summer. If you were to do that it would result in two credit inquiries (1 Citi, 1 Chase). The reason why people apply for multiple CCs at one time is so that the credit analysts don't see all the "recent" inquiries on your credit history which helps your approvals.

    I recommend looking at http://creditboards.com/forums/index.php?app=creditpulls for credit pulls that people had in CA. I do know that Barclays and BoA tend to pull from TU and Equifax so you should give the BoA Alaska Airlines application a consideration along with the US Airways card. The US Airways card should be considered due to the Grand Slam promo right now and if you do go with it then apply for the debit card as well ;)
     
  4. rajuabju
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    rajuabju Gold Member

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    Both the Alaska and Hawaiian Airlines cards from BofA pulled TU for me in Cali. Barclays (Choice Visa) pulled EQ. All 3 are good cards, IMO.
     
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  5. Million Mile Secrets

    Million Mile Secrets Silver Member

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    Welcome to MilePoint! You've clearly done your homework!

    I believe that Barclay's usually pulls TransUnion, so you may want to consider Barclay's cards 9but check creditboards.com first).

    Like others, I would reccomend the Barclay's US Air card because not only do you get 40,000 bonus miles and the chance to get a "hit" in the US Air Grandslam, but you are guaranteed 40,000 miles with this card (unlike other Barclay's cards where you get a much lower bonus if you don't quality for the top-of-the-line card). There is also a yearly 10,000 mile bonus and the first year's fee is waived. There is also no minimum spending required to get the bonus!

    If you are looking for a second Barclay's card you could consider the Air Tran card. Air Tran will soon merge with Southwest.

    I also like the Bank of America Hawaiian Airline cards (transfer to Hilton for double hotel miles) or the Alaska Airlines card.

    As for credit inquiries, it is NOT an absolute rule that 2 inquiries from the same bureau will get consolidated into 1 pull if done on the same day. There are many reasons why they won't, including if you apply for 1 business and 1 personal card, different divisions of the bank pull the credit report, your account is flagged for manual review and the pull happens later (or you get multiple pulle).

    That said, I have had readers get both the AA cards and the Chase Sapphire Preferred on the same day, but as always, your personal situation will influence the outcome of the applications.

    Good luck and let us know how it goes!
     
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  6. Thank you all for the replies. I appreciate all the info you guys have given.

    My applications went very very badly..

    First off, my situation before my recent pulls..

    2 credit cards, BofA Secured Card and Capital One Platinum.

    Age of BofA Card - 9 months. - All debts paid in full each month.
    Age of Cap One Card - 2 months. - All debts paid in full each month.

    Last credit scores before applications..

    Experian - 730 - From Experian.com, $1 check credit score promo (PLUS score, I think)
    Equifax - 713 - FICO
    TU - 699 - Creditkarma.com

    Applied for 75k miles VISA and 75k AMEX from Citi.
    Result of two applications - APPLICATIONS VOIDED(applied on Oct 9, 2011, 1 day before applications were removed) - credit score not pulled.

    Applied for 50k miles VISA and 50k AMEX from Citi.
    Result of two applications - DENIED - reason, minimal credit history. Experian credit report pulled.

    Applied for PenFed account.
    Called PenFed rep to ask questions.
    Realized that PenFed already pulled my credit report(from Equifax) for opening a checking account(I know, wtf right?)

    Applied for PenFed 20k miles(with 650 spend within 3 months) AND PenFed Premium Cash Rewards(no miles, 5% cashback on gas, applied for this because I wouldn't have gotten any more pulls anyway) on the phone with a preset(I think the rep did this) $7k limit on EACH.
    Result of two applications - DENIED - reason, minimal credit history.

    Sent a letter of reconsideration lowering my desired limit of $500 for each account.

    Sad, sad, week.

    I guess I don't have many options for a guy just starting out with credit(22 y.o., new to the country). I regret jumping in too soon.. Rick(Frugal Travel Guy) advised me last August to wait 3 months before trying to apply, but I got too excited and jumped in too soon. Maybe, just maybe, it would have turned out better if I had listened.

    I am very disappointed, but I'm not giving up!

    I'm gonna benefit from this system, one way or another. It's going to happen!!
     
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  7. Jimgotkp
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    Jimgotkp Gold Member

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    Sorry to hear! I'm sure things will work out for you next year. Remember not to go crazy on applications once you get approvals...
     
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  8. When do you guys think would be a good time to re-apply again? Would 60 or 90 days be enough?
     
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  9. FlashBack
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    FlashBack Silver Member

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    You should head over to creditboardsDOTcom with these questions. Having a secure card is really going to limit your chances. Good luck!
     
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  10. deant
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    deant Milepoint Guide

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    The problem you are seeing is the lack of a credit history. You do not state what your credit limit is for each of your existing cards and what income you are reporting to the bank. If the credit limits are high relative to your stated income, this could also give a bad signal to the banks.

    With the current financial situation, banks are vary wary of people who are trying to increase their debt without a good credit history. If I were in your shoes, I would wait six months and then apply for 1 card. Possibly a second IF I knew that the pull would be from a second bureau. Considering your credit history, or lack thereof, there is no way I would ask for 2 cards at the same time from one bank.

    Good luck.
     
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  11. Good idea. My balances are fairly small. $500 on my BofA Secured and $500 on my Capital One Platinum.

    The highest bank statement I have ever gotten for my BofA is +/- $60. For my Cap One, $150(30%). I have always paid my bank statements in full though. Now, I'm making sure to make my bank statements appear as $5 per account only so that I can prove I'm using my credit and only having 1% credit utilization.

    Thanks for the honest and helpful suggestions.
     
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  12. deant
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    deant Milepoint Guide

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    Since you gave the information, I can give you some additional suggestions.

    Call BofA and request a credit line increase. Since you have been with them for 9 months they may be more agreeable to increasing your limit. Getting a higher credit limit will allow you to charge more and show that you are a better credit risk. From what others have reported, many credit cards seem to have a minimum credit limit that they will give and $500 is well below that limit.

    You will need to take it very slow to build a good credit history.
     
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  13. Jimgotkp
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    Jimgotkp Gold Member

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    Personally I would wait till next year to apply again to be on the safe side.
     
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  14. LizzyDragon84
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    LizzyDragon84 Gold Member

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    Welcome to MP!

    Personally, I would continue to pay the cards off in full. My understanding of credit utilization is that it's not the amount that you pay to the CC company that gets reported- it's the amount due on your statement. So, if you get a monthly statement of $100, that is the amount that is reported to the credit bureau regardless of whether you pay it in full right away or not. So you don't need to carry a balance to show credit utilization.

    I also agree with other posters that you should try to get the limit raised on your current cards.

    Finally, be patient. You have a short credit history right now and banks don't like that. It's a problem that will go away on its own so long as you keep your oldest cards open.

    Checking with forums that specialize in credit scores may help you find other ways to improve your scores. Good luck!
     
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  15. JohnDeere19
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    JohnDeere19 Gold Member

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    I'd personally recommend getting a CC that you plan on holding onto for a while and building up your credit score and history. It sounds like right now that's what's holding you back.
     
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