Should I accept this pre-approved offer?

[Anonymous]

I'm rebuilding after a bankruptcy. 

I have 2 unsecured cards and one store card.

I was offered an Ollo unsecured card with no fees. 

The only downside I see would be decreasing my AAoA. Should I accept to increase my CL? I also read that it's best to have 3 or more credit cards.

Opinions?

[Anonymous]

Some comments here: http://ficoforums.myfico.com/t5/Credit-Cards/Ollo-Another-New-Credit-Card-Company-Invite-Only/td-p/4...

I personally HATE MABT/Continental Finance myself, but if it's truly no annual fee and no monthly fee the TL will help your FICO if you don't have 3 cards reporting. Since you do have 3 cards already, I wouldn't bother.  Age your reports so you can qualify for some prime cards later.

Read their disclosures carefully to make sure there are no snarky hidden fees.  Continental Finance has been hammered by government regulators repeatedly for violating credit laws and regulations on other cards.

[Anonymous]

Wow, good to know. Thanks!

Do you know if the store card I have counts toward the "3 cards" rule? I know that credit reports treat store cards differently.

[Anonymous]

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@Anonymous wrote:

I'm rebuilding after a bankruptcy. 

I have 2 unsecured cards and one store card.

I was offered an Ollo unsecured card with no fees. 

The only downside I see would be decreasing my AAoA. Should I accept to increase my CL? I also read that it's best to have 3 or more credit cards.

Opinions?

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If it were me, I would not get the card.  I would work on increasing my AAoA and establishing good payment history going forward.  I would give it another year, get your scores up, then look at possibly applying for something you might want. 

Also, consider reading the following link for suggestions on cards to apply for post BK.  Good luck. 

http://ficoforums.myfico.com/t5/Bankruptcy/Bankruptcy-Friendly-Credit-Cards-Pt-2/td-p/3999737

[Anonymous]

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@Anonymous wrote:

Wow, good to know. Thanks!

Do you know if the store card I have counts toward the "3 cards" rule? I know that credit reports treat store cards differently.

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It does!  My second CC was a Williams Sonoma store card (gets a LOT of use!) and my FICO jumped up a TON when it reported.

Also do keep in mind that there's some evidence that a 4th and 5th card will actually help FICO scoring but hurts more initially than 1, 2 and 3.  So eventually you will want a 4th and 5th card, but do it when your scores warrant getting an approval on a rewards prime card you will use.

[Anonymous]

Your advice makes me think.

My only goal is to put myself in a good place to get a mortgage. I have a 1.5% cash back card which I'm happy with rewards-wise (rewards don't get THAT much better, right?)

It sounds like accepting would slightly bump up my score come mortgage time (maybe a year from now)

[Anonymous]

It may, but if you let your accounts age in the garden, you'll likely qualify for a superior prime card this year that will actually be valuable to you long term rather than just another rebuilder card you'll gain no other benefits from but the TL.

Of course it's up to you. but if you're planning for a mortgage next year, I say wait a few months, see how your FICO08s grow and then see what you might qualify for later in the summer.

Do you have an active installment loan reporting right now?  Student loan, auto loan, etc?  If not, do the Alliant SSL in June -- costs almost nothing and can bump your FICO08s 20 points which may help get a prime rewards card.

[Anonymous]

Sounds a bit like you WANT to accept, a NEW 'pretty' girl in your mix @dudebro😉

You ask a solid question #1
and #2 I'm very cool with your​ clear heady thinking of simply 'framing' your profile for optimality

That being said, you have the 3 Revolving TL's, period.
You're done, the aging aspect can only happen as they age, allow them to do so

The only additional strategic move one in your position could justify for optimal building purposes would be the addition of an installment TL, to add thickness and more importantly garner points for credit mix

Adding yet another revolvers, at this point is a nothing burger in comparison.... simply adding a SSL, just to add that paint to your credit canvass is a huge vs the 'hassle' of getting it done, especially when one considers even a half a point mortgage wise.

Best of luck.... definitely add an installment account so the mortgage won't be the 1st.