Is it best to open TLs at the same time?

[Anonymous]

I was planning on buying a car next year, and also thought about getting a discover card. Since im going to lose the AAoA anyway, it would be best to open up the auto loan and the CC in the same month, the AAoA i will lose will be the same. Correct?

[Jazzzy]

Because AAoA is an average, it will make a difference to AAoA whether you add one new account or two. By adding two, you will lose more on your average age of accounts.

The way to calculate the impact would be to see how they calculated your AAoA right now. Then add one new account to it and see what happens. Then add two new accounts and see the results.

The impact will depend upon how "old" and how "thick" your credit file is. A credit file with a lot of accounts won't be hit as much in AAoA as will a thin file. Those are all things to consider. As to AAoA, at some point...in order to add new tradelines...you will need to take a step backwards in AAoA. One step back...two steps forward. That's how I look at it.

If you believe the interest rate/terms you may be offered on an auto loan is more dependent upon a high score, then you may want to do the auto loan first. If you believe the Discover card acceptance is dependent upon FICO score, you may want to do that first.

What is your AAoA right now?

[Anonymous]

My AAoA right now is 1 year 5 months, and oldest account is 2 years 3 months. Im only 20 so thats why its so low. The Discover can just wait then because I dont want to lose to much AAoA for the auto loan. It makes since, you would just average the accounts, but i wasnt thinking about adding two accounts, dumb moment, but now i processed it.  But at the same point I think that I want to get my CCs now while im young and just keep them for 10 or 15 years that way im set and happy with them instead of 2 or 3 years from now get the Discover and lose my AAoA then when I might be looking at a mortgage once school is over.