AoA and AMEX revolvers: Having many cards vs. Fewer Cards

[Devastator]

Hi:

I currently have the following credit:

1. Credit Steps Capital One MC (don't use it--it's my oldest card from my subprime days) 2007

2. Chase Freedom Visa  2007 (was WAMU)

3. Line of Credit for a Capital One checking account (overdraft protection, but shows up as credit on my report) 2005

4. Amex Zync  2010

5. Discover More (Student)  2010

6. Citi Diamond MC  2012

7. Credit Union Visa 2011

I'd like to replace the Zync with one of the Amex revolving credit cards this fall.  That'll be the last credit card I apply for in my life hopefully, and that will be my target for "recovery" from subprime land. I ultimately want to just have 3 credit cards, plus a spare. There's a few questions I have though:  

Here are the questions I have:

- Amex revolving--between Amex Clear, Amex Blue Cash and Amex Blue, are any necessarily more difficult to get than another? Can one apply for both on the same day?

- I feel like closing either or both of the Chase and Cap One cards.  I may keep Cap One because it's old, but Chase is a little annoying as they're being stingy on the CLIs--I'd expect it from Cap One, but what did I do to wrong to Chase???

- Ultimately I don't really want to have all those cards, but I'm fearing that closing some cards will hurt me when I apply for the Amex Revolving card. On the other hand, if I was applaying for the Amex revolver card, that'd be the seventh credit card I was being issued (even though I'd promptly close two after approval).  

Basically what looks better to Amex for a revolver--6 credit cards and high AoA or 4 credit cards but shorter AoA?

(Background: Only baddie is a collection that's paid from 2007, there might be a couple of inquiries as I periodically attempt to CLI every 6 months. Utilization I don't worry about until the month before applying for upgrades/CLIs/new cards. My current FICO is 665).

[pizzadude]

Just in case you aren't aware ~ closing credit cards does not negatively impact your AAoA.   Closed cards remain on your reports for 10 year from the date closed, and are counted in your AAoA just like open cards.

In terms of what AMEX likes to see, I think you are fine with your current open accounts, assuming that they are all in good standing with no lates.   And also assuming that your ZYNC card has been used well and is in good standing.

Have you app'd for an AMEX revolver recently or at all ?   If you apply and are declined it will only be a soft pull.

[Anonymous]

Unless closing the cards affects your utilization significantly, I don't think it will matter whether you close them first or not.  Average age of accounts is not affected by account closure until the accounts fall off your reports in 10 years.  I do recommend closing cards that have outlived their usefulness.  However, if your FICO is 665, I don't think you'll be approved for an Amex revolver.  They are much more difficult to get than the charge cards, you'll want atleast a 700 on Experian for good odds.

[RyVision]

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@Devastator wrote:

Hi:

I currently have the following credit:

1. Credit Steps Capital One MC (don't use it--it's my oldest card from my subprime days) 2007

2. Chase Freedom Visa  2007 (was WAMU)

3. Line of Credit for a Capital One checking account (overdraft protection, but shows up as credit on my report) 2005

4. Amex Zync  2010

5. Discover More (Student)  2010

6. Citi Diamond MC  2012

7. Credit Union Visa 2011

I'd like to replace the Zync with one of the Amex revolving credit cards this fall.  That'll be the last credit card I apply for in my life hopefully, and that will be my target for "recovery" from subprime land. I ultimately want to just have 3 credit cards, plus a spare. There's a few questions I have though:  

Here are the questions I have:

- Amex revolving--between Amex Clear, Amex Blue Cash and Amex Blue, are any necessarily more difficult to get than another? Can one apply for both on the same day?

- I feel like closing either or both of the Chase and Cap One cards.  I may keep Cap One because it's old, but Chase is a little annoying as they're being stingy on the CLIs--I'd expect it from Cap One, but what did I do to wrong to Chase???

- Ultimately I don't really want to have all those cards, but I'm fearing that closing some cards will hurt me when I apply for the Amex Revolving card. On the other hand, if I was applaying for the Amex revolver card, that'd be the seventh credit card I was being issued (even though I'd promptly close two after approval).  

Basically what looks better to Amex for a revolver--6 credit cards and high AoA or 4 credit cards but shorter AoA?

(Background: Only baddie is a collection that's paid from 2007, there might be a couple of inquiries as I periodically attempt to CLI every 6 months. Utilization I don't worry about until the month before applying for upgrades/CLIs/new cards. My current FICO is 665).

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I know that the AMEX revolvers are harder to get approved for than the charge cards. I think I've heard the "Blue" series is a bit harder but not by much than others (Like Costco True Earnings and the Clear, IIRC).

As for Chase and CLI's, they're not generous but I've read they're often even less generous with CLI's for accounts that were previously with WAMU (seems the majority who've been through that transition felt that way at least).  I'm going to lean towards Chase being less likely to give a CLI with a collection still showing, even if paid, you may have better luck once that drops off with CLI's from Chase (I'm not a huge fan of Chase, but I can't say I'd recommend you dumping them yet).  They look good on anyone's report and outweigh the "sub-prime" stigma of Cap 1 when you apply with AMEX (IMHO).

It's not that you have to get rid of any cards. If you like Cap 1 for now, keep them all until you get your AMEX. If you close any, they'll still report for 10 years (as closed by you) and not effect your AAoA.

From what I can see, I think you have a great collection that, if you continue to treat it well, will do nothing but bring  your scores up and closer to AMEX revolvers. I wouldn't close any as of yet myself.  I've read AMEX likes to see over 700 across the board for revolvers and that may not happen until your old collection drops off.

[clocktick]

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@Devastator wrote:

 There's a few questions I have though:  

Here are the questions I have:

- Amex revolving--between Amex Clear, Amex Blue Cash and Amex Blue, are any necessarily more difficult to get than another? Can one apply for both on the same day?  I have all 3 (within 6 months of each other) but do not think any one was harder to obtain over the other.  I cannot remember if you can apply for both on the same day.

- I feel like closing either or both of the Chase and Cap One cards.  I may keep Cap One because it's old, but Chase is a little annoying as they're being stingy on the CLIs--I'd expect it from Cap One, but what did I do to wrong to Chase???  I have also read they treat previous WAMU card holders differently but not sure of the validity of that.  I do know Chase doesn't just freely hand out auto CLIs to everyone.  You'd most likely have to request it and then it would be a HP. 

- Ultimately I don't really want to have all those cards, but I'm fearing that closing some cards will hurt me when I apply for the Amex Revolving card. On the other hand, if I was applaying for the Amex revolver card, that'd be the seventh credit card I was being issued (even though I'd promptly close two after approval).  

Basically what looks better to Amex for a revolver--6 credit cards and high AoA or 4 credit cards but shorter AoA?  As stated above, your AAOA would be the same because closed accounts still count.

(Background: Only baddie is a collection that's paid from 2007, there might be a couple of inquiries as I periodically attempt to CLI every 6 months. Utilization I don't worry about until the month before applying for upgrades/CLIs/new cards. My current FICO is 665).

 I understand you're wanting to minimize the amount of cards you have.  Heck, I'm going through the same thing.  It is up to you about the timing but it shouldn't really affect you since you plan on keeping your utilization down before applying for another.

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[Devastator]

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@RyVision wrote:

I know that the AMEX revolvers are harder to get approved for than the charge cards. I think I've heard the "Blue" series is a bit harder but not by much than others (Like Costco True Earnings and the Clear, IIRC).

As for Chase and CLI's, they're not generous but I've read they're often even less generous with CLI's for accounts that were previously with WAMU (seems the majority who've been through that transition felt that way at least).  I'm going to lean towards Chase being less likely to give a CLI with a collection still showing, even if paid, you may have better luck once that drops off with CLI's from Chase (I'm not a huge fan of Chase, but I can't say I'd recommend you dumping them yet).  They look good on anyone's report and outweigh the "sub-prime" stigma of Cap 1 when you apply with AMEX (IMHO).

It's not that you have to get rid of any cards. If you like Cap 1 for now, keep them all until you get your AMEX. If you close any, they'll still report for 10 years (as closed by you) and not effect your AAoA.

From what I can see, I think you have a great collection that, if you continue to treat it well, will do nothing but bring  your scores up and closer to AMEX revolvers. I wouldn't close any as of yet myself.  I've read AMEX likes to see over 700 across the board for revolvers and that may not happen until your old collection drops off.

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Thanks this is good information.  In addition to just not wanting to have many credit cards, some of it is just bitternes at Chase, but perhaps better not to cut off my nose to spite my face. 

Hey, about that collection that's keeping me away from 700....being that it's 5 years old (it hit in 2007, was paid off in 2011 in a settlement, but it's marked "paid in full") if I dispute it on the three reports, any chance that it'd just go off since it's paid anyway? Or do collection agencies tend to fight to keep it on the report?

I suppose perhaps I might just wait a year instead of 6 months to apply for that Amex.  Yes, I applied for the Clear yesterday and was rejected.  This was the reason: 

On March 05, 2012, your FICO score was 675.  The FICO score ranges from 300 to 850.  The following are the key factors that contributed to your FICO score:

Derogatory public record or collection filed. Proportion of loan balances to loan amounts is too high. Length of time accounts have been established.

[clocktick]

Do not dispute it if it's legitimate.