target card/utilization/new account on credit report

[wenbev]

Is this red card your only card? If it is and the credit scores and reports aren't that great, I'd look at a secured card from a bank - WF, Citi, Chase.  This way you'd have two TLs reporting. I still wouldn't close it; that's my 2 cents.

[09Lexie]

Closing a cr will affect your util cause you no longer have that cl. if util is not a factor due to the low CL and you don't want to wait the RedDebit will give you the 5% bonus. You will not get a 'bump back' on your AAOA what's done is done once the account reported to your CR's. Regarding the length of time it may take to report, can differ with each lender. For instance Discover can take up to two billing statements to report. My Mutual Of Omaha MC reported on EQ within two weeks but did not report to EX or TU until another 30 days.

Young is correct that higher limits beget higher limits - I find that truer in cc's not so much In store cards.

[gheedorah]

I have 2 Cap Ones, 1 Orchard (now also Cap One), 1 Amazon/Chase Visa, 1 Walmart store card, 1 Target store card. Walmart card opened Nov 2012, Target card opened Feb of this year. All other cards 1 - 3 years old. I don't use the Walmart at all, I just get the freebie FAKO from the site. Target card I've used a bit.

I wonder if I should close both the store cards? It probably makes me look neurotic and unstable to close a 5 month old card and a 2 month old card, especially since I alreayd have taken the hits from the inquiries, but they're the two lowest limits I have, by 50% or more, and the two youngest accounts. Hmm.

[gheedorah]

@ Lexie

Everything I've read is that AAoA is only calculated from open/active accounts, and does not include closed accounts- hence people being discouraged from closing their oldest credit cards. As that's seemingly the case, why wouldn't the AAoA recalculate along with all other algorhythms the next time some creditor pulls my FICO or credit report?

RE: Util, I am carrying about $75 in debt across about $2500 combined CL between store cards/CCs, so I don't believe it would be much of a factor (and in fact, $40 of the $75 is on the Target card).

[09Lexie]

FICO considers open and closed accounts for AAOA. Closing the account would not give you your time back after the account has been reported. If you close the account it may report up to 10 years- it can also fall off sooner. Remember its the average age of accounts- all accounts that appears on your cr

It is up to you if you want to close it IMO, 2 mos is too soon to think you will get a CLI - what does the lender have to base the request on; 1 mo of activity? GE is one of the few that gives CLI's at 4 mos.

[gheedorah]

Oh, I wasn't assuming I'd get a CLI on the card any time soon, or complaining that I hadn't- those were others explaining in tangentally-related fashion that Target is quite stingy with CLIs. This thread was simply asking if anyone knew when my actual CL for the Target card would show up on my credit report, as presently, it shows my $35 balance, but not the actual CL.

I don't understand- my AAoA matches exactly the total cumulative months of all open lines of credit, divided by the total number of all open lines of credit. When the Walmart card showed up on my reports, my AAoA dropped, and kept in perfect sync with this formula. When the Target card showed up yesterday, it again kept in perfect step with this formula.

Why does it say everywhere that closing your oldest card hurts your AAoA if a closed account is still calculated into your AAoA? Why doesn't my HSBC account (closed 2009) or my car loan (final payment Aug 2011) calculate into my AAoA? Those are the only closed items on my credit report, and those are the only two items that are clearly not calculated into my AAoA.

[09Lexie]

I was referring to your statement of 'bump back' Closing account does not hurt your AAOA - the hit has already occurred once the account reports. I'm not sure why the two accounts you mention are not reflective of your AAOA. Are you referring to a report from Credit Karma?

[09Lexie]

Let me refer you to this thread:

http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Average-Age-of-Accounts-Questions/td-p/62...

[gheedorah]

Posted while you were linking me =)

Thanks!

Well, this makes zero sense to me whatsoever, but I will trust the concensus here.

Still...so confusing...it fits perfectly into the calculations, and my car loan was a 4 year or so...HSBC card was a couple of years...AAoA should be higher than it is.

Hmm.

[09Lexie]

Back to your original question, as I stated before TD Bank recently acquired Targets Credit cards- I think it's too early to tell how they will handle CLI's. yes, the old Target was stingy with CLI's - IMO the jury is still out with TD Bank.