topic When do new accounts stop being "new accounts?" in Credit Cards

When do new accounts stop being "new accounts?"

MACFRME — Thu, 17 Oct 2013 05:55:38 GMT

I was wondering at what time do lenders stop considering new accounts to be new? I know the conventional wisdom says 2 years, but what do you all think? Do perspectives differ at big banks and at smaller institutions that do manual reviews?

In addition, what do you think is the credit age/AAoA that you are considered to have excellent credit (meaning mortgage-worthy, unlikely to be turned down for anything)? I am not talking about just scores (I have a thin TU file and a 764).

I aks this questions because I have opened several new account this year, and want to plan ahead. I am in the garden for at least a year (possibly stepping out next October). By then, my AAoA will be around 2 years and m credit age will be 6.5 years. I will want to ask for CLIs then and possibly add one or two more cards.

Re: When do new accounts stop being "new accounts?"

red259 — Thu, 17 Oct 2013 06:03:51 GMT

I'm not sure I understand what you mean by new accounts stop being new? The inquiries begin to weaken at six months and then have a negligible impact on score after a year. In terms of new accounts from a lender's perspective I know chase considers an account new for the first six months if you have one of their cards and then they get more comfortable with you. I would say accounts start aging well around six months and after they cross the one year mark they are not really considered new at all. I don't know anything about mortgages though.

Re: When do new accounts stop being "new accounts?"

Duke-of-Earl — Thu, 17 Oct 2013 06:05:27 GMT

The section on "Understanding your FICO Score" in their reports says (last I looked):

"FICO High Achievers opened their oldest account 19 years ago, on average."

"Most FICO High Achievers have an average age of accounts between 6 and 12 years."

... so you probably don't want to wait! But I don't think your stats are all that problematic

if everything else looks good.

Good luck!

Re: When do new accounts stop being "new accounts?"

MACFRME — Thu, 17 Oct 2013 07:03:39 GMT

Thanks!

I am only looking to add an Amex (maybe two) next year and get most of my CLs above $6,000. I am not asking anyone for anything until then because I don't want AA. I also want to see how Chase, Alliant, and Cabela's are going to be with auto CLIs.

Re: When do new accounts stop being "new accounts?"

Peter1142 — Thu, 17 Oct 2013 12:55:52 GMT

FICO scoring considers anything under 1 year as new, though it graduates to less and less important over the months. Same for inquiries which have no effect after 1 year.

This is different from your AAoA.

Re: When do new accounts stop being "new accounts?"

Anonymous — Thu, 17 Oct 2013 14:19:34 GMT

From the bank I work at, we consider anything new for about 60 days. But as far as being established, it depends on a lot of factors.