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Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

New Contributor

Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

I was just turned down for a CLI on my Cap1 Quicksilver card [$7500 limit}. I use this card to pay most of my monthy bills and pay off every month. They used an old FICO score from December [651] while my current FICO 8 score is 700. I understand they use a different FICO score [4/5] for this purpose. I just requested / given a $500 increase on my Synchrony card.

 

My current utiliization is 16.5%. My other Cap1 card has a balance of $1300 [72% utilization]. I have another card at 43%. The goal is to get it under 30% and then focus on the other Cap1 card while paying the minimum on my other cards [between 2-16% utilization].

 

I plan on requesting another CLI on the Quicksilver in 2 months. Question, my oldest credit line is 17 years BUT the average age of all of my accounts is only 3.3 years. I was thinking of applying for a Discover card to reduce my utilization which would in turn reduce the average age of my credit history. What should I do? Also what does FICO consider "heavy usage" - anything over 10%?!      

Message 1 of 30
29 REPLIES
Senior Contributor

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

I never recommend getting another card just to reduce utilization. Requesting CLIs sure, but not adding new accounts for this purpose. I suggest simply hammering away at those balances and once they are paid off keep them paid off!
Message 2 of 30
Member

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

I wouldn't... how many cards do you have now? While 17 years is nice, my first thought is "Ok, AAoA is 3 years... what, can they not keep an account long term?"

Message 3 of 30
New Contributor

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

I have eight [8] cards. I had a chaper 7 in 2005. I rebuilt my credit with installment loans rather than credit cards. Then opened 4 cards in the last 2 years when I felt like I wasn't going to abuse them.  

Message 4 of 30
Member

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

I'm no expert, but that seems like a lot. You know, inquires stay on your report for 2 years, right? DO NOT open a new card now. If you want to fix your utilization, pay some cards down.

Message 5 of 30
New Contributor

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

I have one inquirey on TU and two on EQ with one of those coming off in 5/17. By then I should have my utilization below 10%.  

Message 6 of 30
Senior Contributor

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?


Sprink wrote:

I wouldn't... how many cards do you have now? While 17 years is nice, my first thought is "Ok, AAoA is 3 years... what, can they not keep an account long term?"


Keeping an account long term is not what is driving down his AAoA.  Even if you open an account today and close it tomorrow, it stays on your credit report for 10 years impacting your AAoA.  The reason his AAoA may be lower than expected is not due to closing out accounts quickly, but rather opening accounts.  Opening accounts drives down AAoA.  Closing them does not.

Message 7 of 30
Member

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

I realize that, hence my comment. Read it closely Smiley Happy I was saying that his my first impression would be like, "Ok, you have a decent max age. How come your AAoA is so low?" I realize that closing accounts has no impact on your score. I feel like you got the wrong impression of me by some poorly worded questions on my part. I am actually surprisingly knowledgable for my age Smiley Happy

Message 8 of 30
Senior Contributor

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

I reread your comment and I don't see how you could have been implying anything other than trying to draw a correlation between a low AAoA and closing accounts.

Message 9 of 30
Member

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Once again, I apologize for my poor word choice. I was actuaaly told I have a weird way of asking things... don't worry! from now on I'll leave it to people who can convey what they mean more! Smiley Happy

Message 10 of 30