cancel
Showing results for 
Search instead for 
Did you mean: 

oldest revolving account has not been opened long enough

Valued Contributor

Re: oldest revolving account has not been opened long enough


villemiami wrote:

The first one was a Paypal extras mastercard, I had it for 7 months, I paid everything in time. The second one was a Aadvantage Citi mastercard, I had it for 8 months and half, I closed it 2 weeks ago.

I applied today at Costco and I got the Costco credit card. Next time I apply for a new credit card in a few months, I will keep my Costco credit card.


Congratulations on the Costco card. Smiley Happy

 

My question was when you opened the closed cards. If you could list your cards, open and closed, along with their opening dates, closing dates, and limits, we can offer much more specific help. A format like this is used a lot:

 

PayPal Extras MasterCard: Date opened ?, Date Closed ? Limit ?

Citi AAdvantage: Date Opened ?, Date Closed ? Limit ?

Citi Costco: Opened Jan 2018, still open, Limit ?

 

Filling in the blanks where I've left questions marks will help us help you.

 

Right now, everyone's kind of stabbing in the dark with general advice, and you're stabbing in the dark with applications. For instance, Chase is a tough bank to get into, but it's not so tough if you play your cards right. They like to see a history of a certain length, not too many recent accounts or applications, and limits that indicate that you can handle the card you're applying for. Other banks and cards are much easier. We'd like to offer suggestions that will keep you from walking into denials.

 

As mentioned above, you probably want to build your profile so you have at least three cards. How you go about this depends on which cards you're interested in. If you know you'd like to app with Chase, for instance, you need to work slowly and not grab too many cards right away. If Chase doesn't interest you, you can work somewhat more quickly.

 

Definitely don't close your only card until you have its successor. And actually, unless you're having a bad experience with a bank or you're paying an annual fee that isn't benefiting you, you shouldn't close cards until you have at least three — and preferably five.

Message 11 of 15
New Member

Re: oldest revolving account has not been opened long enough

OK, I understand. Here is the information I have for now:

PayPal Extras MasterCard: Date opened:10/14/2016, Date Closed: 4/17/17

Citi AAdvantage: Date Opened: 4/10/17, Date Closed:12/26/17

Citi Costco: Opened 1/12/2018, still open

Message 12 of 15
Established Member

Re: oldest revolving account has not been opened long enough

In the future don’t close cards unless there is a fee you are trying to avoid at least until you have an aged profile years from now. There are plenty of articles out there why you don’t close credit cards. FICO systems love to see different types of credit on your profile. And they love to see revolvers. If you look up AZERO method you will see that for starters it’s good to see three credit cards on your profile and only one showing a balance less than 8.9%. And longer term you get a boost with five credit cards all older than 24 months. Only one of five showing a balance. That’s a good start for the revolver section of your credit report. Grasshopper credit is a marathon. Not a sprint :-) always pay your bills and the different use of different types of loans will happen naturally over time.



Starting Score: 600
Current Score: 702
Goal Score: 800


Take the myFICO Fitness Challenge
Message 13 of 15
New Member

Re: oldest revolving account has not been opened long enough

OK thank you

Message 14 of 15
Valued Contributor

Re: oldest revolving account has not been opened long enough


villemiami wrote:

OK, I understand. Here is the information I have for now:

PayPal Extras MasterCard: Date opened:10/14/2016, Date Closed: 4/17/17

Citi AAdvantage: Date Opened: 4/10/17, Date Closed:12/26/17

Citi Costco: Opened 1/12/2018, still open


That helps a lot. If you can add in the limits on those cards at some point, that'll be helpful too.

 

For future apps, you need to decide how important Chase is to you. They have a rule known as 5/24. If you've opened 5 or more cards in the past 24 months, you'll automatically be denied. Some cards aren't included in 5/24, though. I don't have that information at my fingertips, but someone else might. As mentioned, they also like to see at least a year of history. Given that you were recently denied by Chase for a short history, I'd give it at least six months if you want to try again.

 

If you're not interested in Chase for the time being, you can probably go ahead and apply for another card or two relatively soon. Possibilities might include Capital One Quicksilver or Savor (definitely NOT Venture at this time), Bank of America Cash Rewards, AMEX, or Discover.

 

The reason that knowing your limits is important is that some cards have minimum credit limits. For instance, Chase Sapphire Preferred and Capital One Venture have minimum credit limits of $5,000. If you haven't had "experience" with $5,000 limits, you're likely to walk into a denial until someone else gives you a limit in that range first.

Message 15 of 15