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Super Contributor
Posts: 6,307
Registered: ‎02-24-2015

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


sonatina wrote:

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%?!      


I don't think it's a good idea to submit credit card applications while your utilization is high like that.


I think it's best to just bite the bullet and pay things down.

Senior Contributor
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Registered: ‎04-11-2016
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Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

I agree with SJ.  Approvals with high utilization aren't usually all that great (relative to if you had low utilization) so really how much is that additional credit line if it's not very high going to help with your aggregate utilization?

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Registered: ‎11-04-2016
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Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?


BrutalBodyShots wrote:

I agree with SJ.  Approvals with high utilization aren't usually all that great (relative to if you had low utilization) so really how much is that additional credit line if it's not very high going to help with your aggregate utilization?


I'm just trying to do both - pay down my current 16.5 ultilization AND increase my CLs. Based on my calculations I should be below 10% in three months.

Senior Contributor
Posts: 7,043
Registered: ‎04-11-2016

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


sonatina wrote:

BrutalBodyShots wrote:

I agree with SJ.  Approvals with high utilization aren't usually all that great (relative to if you had low utilization) so really how much is that additional credit line if it's not very high going to help with your aggregate utilization?


I'm just trying to do both - pay down my current 16.5 ultilization AND increase my CLs. Based on my calculations I should be below 10% in three months.


So you really have no need to open up another card then.  I would try for some CLIs on the cards that you have now.  Your combined CLIs could exceed what a new line of credit could provide you in terms of your aggregate utilization denominator. 

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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?"


Just pulled my EX credit report. The AAoA is 6.1 years. The 3.3 years is what was reporting on my FACO report for credit cards only.

Frequent Contributor
Posts: 485
Registered: ‎10-05-2012
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Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

i would leave alone- i agree with brutal, spr and south.

Valued Contributor
Posts: 1,845
Registered: ‎10-10-2011

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

Best way to lower utilization: PAY IT DOWN! Doesn't matter if your AAofA is 1 year or 10 years. PAY IT DOWN! 

 

Remember, you asked for advice, and you certainly received it.  It's up to you what you're going to do with said advice.

 

Best credit wishes to you!


Current Scores 3/2016 Equifax 676 Transunion 697 Experian 648 Goal Scores: 720's accross the board. Gardening Goal: 3/2017
Senior Contributor
Posts: 4,264
Registered: ‎11-11-2015
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Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?


Sprink wrote:

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.


4 cards in 2 years is nothing. And stop over rating inquiries. They have no affect after 12 months. 

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

[ Edited ]

Your AAOA is pretty good.

AMEX BCP $9000- DCU Platinum $10000- PenFed Power $11000- Chase FU $11700- AMEX EDP $15000- NFCU CLOC $15000- Chase CSP $18900- Discover IT Miles $20000- Penfed Promise $25000- NFCU Go Rewards $27100- Venture $27750 **As of 10/17/17** EX- 760(13) TU- 759(12) EQ- 730(14) UTI 5%- Clean Files
Senior Contributor
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Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

[ Edited ]

Sprink wrote:

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


Understandable. We all do it.

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