topic Re: Applying for a credit card in Credit Card Applications

Applying for a credit card

AyaMai — Sun, 17 Mar 2024 16:56:56 GMT

In December my oldest account will be 12 years & 4 months and average age of accounts will be 2 years and nine months, score over 800, scorable inquiries will pass one year mark.

Will 2 credit cards applications on the same day have a huge impact on my average age of accounts.

Re: Applying for a credit card

CreditPoor — Sun, 17 Mar 2024 17:04:36 GMT

It's easy to calculate. Add up the ages of all your credit accounts (in years) and then divide by the total number of accounts. This gives you the average age of your credit accounts. If you're approved for the 2 accounts, simply add to the equation

Re: Applying for a credit card

CorpCrMgr1 — Mon, 18 Mar 2024 00:32:32 GMT

I know others disagree with me, but I believe in applying at once instead of six months apart. If you had no CC and applied for two cards today in a year your AAoA would be one year. If you waited six months to apply for the second card, when the first card turned a year your AAoA would be nine months. Three cards at once vs. waiting six months per card your AAoA would be one year vs. six months. Good luck!

Re: Applying for a credit card

AyaMai — Mon, 18 Mar 2024 03:40:33 GMT

@CorpCrMgr1 wrote:
I know others disagree with me, but I believe in applying at once instead of six months apart. If you had no CC and applied for two cards today in a year your AAoA would be one year. If you waited six months to apply for the second card, when the first card turned a year your AAoA would be nine months. Three cards at once vs. waiting six months per card your AAoA would be one year vs. six months. Good luck!

Assume one person with 10 cards and the other has 50 cards with the same AAoA, both of them apply for 2 cards at the same time. Does the two applicants end up with the same AAoA after a year.

Re: Applying for a credit card

CorpCrMgr1 — Mon, 18 Mar 2024 05:23:45 GMT

@AyaMai wrote:
@@AyaMai

Assume one person with 10 cards and the other has 50 cards with the same AAoA, both of them apply for 2 cards at the same time. Does the two applicants end up with the same AAoA after a year.

No, of course not. Your example is apples (10) to oranges (50).

Re: Applying for a credit card

Horseshoez — Mon, 18 Mar 2024 11:23:50 GMT

@AyaMai wrote:
@CorpCrMgr1 wrote:
I know others disagree with me, but I believe in applying at once instead of six months apart. If you had no CC and applied for two cards today in a year your AAoA would be one year. If you waited six months to apply for the second card, when the first card turned a year your AAoA would be nine months. Three cards at once vs. waiting six months per card your AAoA would be one year vs. six months. Good luck!

Assume one person with 10 cards and the other has 50 cards with the same AAoA, both of them apply for 2 cards at the same time. Does the two applicants end up with the same AAoA after a year.

Just goofing around with your original numbers, if two individuals started out with an AAoA of 2.75 years (2 years 9 months), one with 10 cards and 1 with 50, and then both folks added two new cards and waited a year, their AAoAs would look like this:

10 cards to 12 cards: AAoA initially drops from 2.75 to 2.29 years, and then after another year it bumps up to 3.29 years
50 cards to 52 cards: AAoA initially drops from 2.75 to 2.64 years, and then after another year it bumps up to 3.64 years

If no new cards had been added to either portfolio and another year of aging had taken place, the AAoA would have gone up to 3.75 years for both portfolios; long story short, adding two new cards to the portfolio with 50 cards was impacted less from an AAoA perspective than the portfolio starting with 10 cards.

Re: Applying for a credit card

AyaMai — Mon, 18 Mar 2024 12:51:42 GMT

@Horseshoez wrote:
@AyaMai wrote:
@CorpCrMgr1 wrote:
I know others disagree with me, but I believe in applying at once instead of six months apart. If you had no CC and applied for two cards today in a year your AAoA would be one year. If you waited six months to apply for the second card, when the first card turned a year your AAoA would be nine months. Three cards at once vs. waiting six months per card your AAoA would be one year vs. six months. Good luck!

Assume one person with 10 cards and the other has 50 cards with the same AAoA, both of them apply for 2 cards at the same time. Does the two applicants end up with the same AAoA after a year.
Just goofing around with your original numbers, if two individuals started out with an AAoA of 2.75 years (2 years 9 months), one with 10 cards and 1 with 50, and then both folks added two new cards and waited a year, their AAoAs would look like this:
10 cards to 12 cards: AAoA initially drops from 2.75 to 2.29 years, and then after another year it bumps up to 3.29 years
50 cards to 52 cards: AAoA initially drops from 2.75 to 2.64 years, and then after another year it bumps up to 3.64 years
If no new cards had been added to either portfolio and another year of aging had taken place, the AAoA would have gone up to 3.75 years for both portfolios; long story short, adding two new cards to the portfolio with 50 cards was impacted less from an AAoA perspective than the portfolio starting with 10 cards.

Thank you very much for taking the time for the information I wanted.