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Established Contributor
MountainHiker
Posts: 651
Registered: ‎08-07-2012
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Do new reporting accounts have negative effect on new approvals?

I've read quite often on this forum that its better to app for a CC before a new card starts reporting on their credit.

 

Does having a brand new high limit account hurt a applicant's chances of getting a new CC? I was thinking having a card which is much much higher than the applicants previous limits would be beneficial even if the card is brand new.

 

What are you thoughts on the subject?

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enharu
Posts: 7,132
Registered: ‎02-27-2013
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Re: Do new reporting accounts have negative effect on new approvals?

it is generally a bad idea to apply for another card right after you just got a new one.

why? because banks are worried that you are getting desperate and is trying to apply for all kinds of loans/credit.

this may not necessary be your case, but a lot of people do this when they are desperate.

 

i am trying to apply for 2-3 cards tomorrow as well, so i'm just going to do it all together.

 

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MountainHiker
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Re: Do new reporting accounts have negative effect on new approvals?

[ Edited ]

enharu wrote:

it is generally a bad idea to apply for another card right after you just got a new one.

why? because banks are worried that you are getting desperate and is trying to apply for all kinds of loans/credit.

this may not necessary be your case, but a lot of people do this when they are desperate.

 

i am trying to apply for 2-3 cards tomorrow as well, so i'm just going to do it all together.

 


Would waiting three months after getting my new card be enough time between apping?
I would like to go after two cards but don't want to hurt my chances for approval of higher limit cards.
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enharu
Posts: 7,132
Registered: ‎02-27-2013
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Re: Do new reporting accounts have negative effect on new approvals?

generally people would recommend 6 months for most cases, but there's no right answer. some ppl apply for other cards 30days later and they get approved.

 

it really depends on your AAoA, CS and income.

If you have a high income, banks will always be more receptive as long as scores are reasonable.

 

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youngandcreditwrthy
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Registered: ‎08-16-2012
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Re: Do new reporting accounts have negative effect on new approvals?

I think it depends...
If you open one new account in a year and drop your util from 40% to 20% with one new account, and that account is your highest limit, then that would increase your FICO thereby increasing your approval odds.
Now if you opened three new accounts in one year all in the same month , and they report. Regardless of util, that's gonna drop your FICO.

As with most things credit-related...it's a ymmv!
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MountainHiker
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Re: Do new reporting accounts have negative effect on new approvals?

[ Edited ]

youngandcreditwrthy wrote:
I think it depends...
If you open one new account in a year and drop your util from 40% to 20% with one new account, and that account is your highest limit, then that would increase your FICO thereby increasing your approval odds.
Now if you opened three new accounts in one year all in the same month , and they report. Regardless of util, that's gonna drop your FICO.

As with most things credit-related...it's a ymmv!

My Navy Federal is my newest card and the highest limit card by a wide margin. I haven't apped for anything else in quite some time out of fear that I would get denied. But I want to begin the process by deciding which cards to consider. The age of my credit is still very young(1.5 years)(oldest account is 6 years) and I'm sure that will be a factor. Something i didn't know was that collections are counted as being a part of the total age of your credit. A collection recently fell off all three bureaus and when that occured, my credit actually became younger. I never knew collections were weighed in the totality of age of credit. You learn something every day.

 

So anyone reading this post be prepared for your credit to lose some of it's age when a collection falls off. That can really hurt if the collection is 7 years old and all new credit is only a few months old.

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danielodonoll
Posts: 401
Registered: ‎03-16-2013
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Re: Do new reporting accounts have negative effect on new approvals?

Yes and no but most likly no like 75% you should be ok

 Do not atempt like 6 card in a month thats gonna backfire speaking from experience

 

You could easly do 3 in a :smileyvery-happy:month then get a shovel and straight to the garden get those tomatoes going for the spring start.lol

 

 You should be fine Hiker

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Chris123nTx
Posts: 500
Registered: ‎05-11-2007
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Re: Do new reporting accounts have negative effect on new approvals?


MountainHiker wrote:

youngandcreditwrthy wrote:
I think it depends...
If you open one new account in a year and drop your util from 40% to 20% with one new account, and that account is your highest limit, then that would increase your FICO thereby increasing your approval odds.
Now if you opened three new accounts in one year all in the same month , and they report. Regardless of util, that's gonna drop your FICO.

As with most things credit-related...it's a ymmv!

My Navy Federal is my newest card and the highest limit card by a wide margin. I haven't apped for anything else in quite some time out of fear that I would get denied. But I want to begin the process by deciding which cards to consider. The age of my credit is still very young(1.5 years)(oldest account is 6 years) and I'm sure that will be a factor. Something i didn't know was that collections are counted as being a part of the total age of your credit. A collection recently fell off all three bureaus and when that occured, my credit actually became younger. I never knew collections were weighed in the totality of age of credit. You learn something every day.

 

So anyone reading this post be prepared for your credit to lose some of it's age when a collection falls off. That can really hurt if the collection is 7 years old and all new credit is only a few months old.


 

I had never heard of that before or noticed it. They always say a collection matters very little as the years go by, but the last one i had, a 26 paid medical fell off and my sfore went up by about 50 points. I think that can vary a lot due to the indiviual credit profile, but i was amazed and happy it happened. That was several years back so no recent experience.
Established Contributor
MountainHiker
Posts: 651
Registered: ‎08-07-2012
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Re: Do new reporting accounts have negative effect on new approvals?


Chris123nTx wrote:

MountainHiker wrote:

youngandcreditwrthy wrote:
I think it depends...
If you open one new account in a year and drop your util from 40% to 20% with one new account, and that account is your highest limit, then that would increase your FICO thereby increasing your approval odds.
Now if you opened three new accounts in one year all in the same month , and they report. Regardless of util, that's gonna drop your FICO.

As with most things credit-related...it's a ymmv!

My Navy Federal is my newest card and the highest limit card by a wide margin. I haven't apped for anything else in quite some time out of fear that I would get denied. But I want to begin the process by deciding which cards to consider. The age of my credit is still very young(1.5 years)(oldest account is 6 years) and I'm sure that will be a factor. Something i didn't know was that collections are counted as being a part of the total age of your credit. A collection recently fell off all three bureaus and when that occured, my credit actually became younger. I never knew collections were weighed in the totality of age of credit. You learn something every day.

 

So anyone reading this post be prepared for your credit to lose some of it's age when a collection falls off. That can really hurt if the collection is 7 years old and all new credit is only a few months old.


 

I had never heard of that before or noticed it. They always say a collection matters very little as the years go by, but the last one i had, a 26 paid medical fell off and my sfore went up by about 50 points. I think that can vary a lot due to the indiviual credit profile, but i was amazed and happy it happened. That was several years back so no recent experience.

I never knew that a collection could help age a person's credit. Its my opinion that the government should rewrite some of the rules concerning credit and unpaid debts.I think all unpaid debts(except for student) should fall off a credit file after 5 1/2 years.Leaving a unpaid debt on a file for 7.5 years is over kill. If debtors are going to pay their unpaid debt it will happen before the 7th year. Anything beyond a certain time period it would stand to reason that most people will simply allow the debt to age off their report.

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navigatethis12
Posts: 1,952
Registered: ‎01-24-2012
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Re: Do new reporting accounts have negative effect on new approvals?

[ Edited ]

Some lenders don't like to see a lot of new accounts and some don't care. New accounts may hinder instant approvals, but you may be able to get a human to approve it. Having a higher limit may even hurt you. If you have 3 1000 limit cards and a new account shows at 15000, the new lender may want to see some history with the larger limit since you haven't handled one with that kind of limit before.

 

General Electric, FIA, and First National Bank of Omaha had no problem giving me highish limits, but Chase and Barclays won't break 4000 on the personal cards I have with them. So the first three don't care about me having 16 new accounts in one year, while the last two do.


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