topic Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history? in General Credit Topics

Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Wed, 15 Feb 2017 21:23:53 GMT

I was just turned down for a CLI on my Cap1 Quicksilver card [$7500 limit}. I use this card to pay most of my monthy bills and pay off every month. They used an old FICO score from December [651] while my current FICO 8 score is 700. I understand they use a different FICO score [4/5] for this purpose. I just requested / given a $500 increase on my Synchrony card.

My current utiliization is 16.5%. My other Cap1 card has a balance of $1300 [72% utilization]. I have another card at 43%. The goal is to get it under 30% and then focus on the other Cap1 card while paying the minimum on my other cards [between 2-16% utilization].

I plan on requesting another CLI on the Quicksilver in 2 months. Question, my oldest credit line is 17 years BUT the average age of all of my accounts is only 3.3 years. I was thinking of applying for a Discover card to reduce my utilization which would in turn reduce the average age of my credit history. What should I do? Also what does FICO consider "heavy usage" - anything over 10%?!

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Wed, 15 Feb 2017 21:10:35 GMT

I never recommend getting another card just to reduce utilization. Requesting CLIs sure, but not adding new accounts for this purpose. I suggest simply hammering away at those balances and once they are paid off keep them paid off!

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Wed, 15 Feb 2017 22:40:17 GMT

I wouldn't... how many cards do you have now? While 17 years is nice, my first thought is "Ok, AAoA is 3 years... what, can they not keep an account long term?"

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Wed, 15 Feb 2017 23:31:18 GMT

I have eight [8] cards. I had a chaper 7 in 2005. I rebuilt my credit with installment loans rather than credit cards. Then opened 4 cards in the last 2 years when I felt like I wasn't going to abuse them.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Wed, 15 Feb 2017 23:54:18 GMT

I'm no expert, but that seems like a lot. You know, inquires stay on your report for 2 years, right? DO NOT open a new card now. If you want to fix your utilization, pay some cards down.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Thu, 16 Feb 2017 00:09:17 GMT

I have one inquirey on TU and two on EQ with one of those coming off in 5/17. By then I should have my utilization below 10%.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Thu, 16 Feb 2017 01:01:28 GMT

@Anonymous wrote:
I wouldn't... how many cards do you have now? While 17 years is nice, my first thought is "Ok, AAoA is 3 years... what, can they not keep an account long term?"

Keeping an account long term is not what is driving down his AAoA. Even if you open an account today and close it tomorrow, it stays on your credit report for 10 years impacting your AAoA. The reason his AAoA may be lower than expected is not due to closing out accounts quickly, but rather opening accounts. Opening accounts drives down AAoA. Closing them does not.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Thu, 16 Feb 2017 01:40:27 GMT

I realize that, hence my comment. Read it closely I was saying that his my first impression would be like, "Ok, you have a decent max age. How come your AAoA is so low?" I realize that closing accounts has no impact on your score. I feel like you got the wrong impression of me by some poorly worded questions on my part. I am actually surprisingly knowledgable for my age

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Thu, 16 Feb 2017 02:27:27 GMT

I reread your comment and I don't see how you could have been implying anything other than trying to draw a correlation between a low AAoA and closing accounts.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Thu, 16 Feb 2017 02:35:46 GMT

Once again, I apologize for my poor word choice. I was actuaaly told I have a weird way of asking things... don't worry! from now on I'll leave it to people who can convey what they mean more!

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

SouthJamaica — Thu, 16 Feb 2017 02:56:20 GMT

@Anonymous wrote:
I was just turned down for a CLI on my Cap1 Quicksilver card [$7500 limit}. I use this card to pay most of my monthy bills and pay off every month. They used an old FICO score from December [651] while my current FICO 8 score is 700. I understand they use a different FICO score [4/5] for this purpose. I just requested / given a $500 increase on my Synchrony card.

My current utiliization is 16.5%. My other Cap1 card has a balance of $1300 [72% utilization]. I have another card at 43%. The goal is to get it under 30% and then focus on the other Cap1 card while paying the minimum on my other cards [between 2-16% utilization].

I plan on requesting another CLI on the Quicksilver in 2 months. Question, my oldest credit line is 17 years BUT the average age of all of my accounts is only 3.3 years. I was thinking of applying for a Discover card to reduce my utilization which would in turn reduce the average age of my credit history. What should I do? Also what does FICO consider "heavy usage" - anything over 10%?!

I don't think it's a good idea to submit credit card applications while your utilization is high like that.

I think it's best to just bite the bullet and pay things down.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Fri, 17 Feb 2017 00:32:49 GMT

I agree with SJ. Approvals with high utilization aren't usually all that great (relative to if you had low utilization) so really how much is that additional credit line if it's not very high going to help with your aggregate utilization?

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Fri, 17 Feb 2017 00:48:34 GMT

@Anonymous wrote:
I agree with SJ. Approvals with high utilization aren't usually all that great (relative to if you had low utilization) so really how much is that additional credit line if it's not very high going to help with your aggregate utilization?

I'm just trying to do both - pay down my current 16.5 ultilization AND increase my CLs. Based on my calculations I should be below 10% in three months.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Fri, 17 Feb 2017 03:48:43 GMT

@Anonymous wrote:
@Anonymous wrote:
I agree with SJ. Approvals with high utilization aren't usually all that great (relative to if you had low utilization) so really how much is that additional credit line if it's not very high going to help with your aggregate utilization?
I'm just trying to do both - pay down my current 16.5 ultilization AND increase my CLs. Based on my calculations I should be below 10% in three months.

So you really have no need to open up another card then. I would try for some CLIs on the cards that you have now. Your combined CLIs could exceed what a new line of credit could provide you in terms of your aggregate utilization denominator.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Sat, 18 Feb 2017 10:33:44 GMT

@Anonymous wrote:
I wouldn't... how many cards do you have now? While 17 years is nice, my first thought is "Ok, AAoA is 3 years... what, can they not keep an account long term?"

Just pulled my EX credit report. The AAoA is 6.1 years. The 3.3 years is what was reporting on my FACO report for credit cards only.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

wa3more — Sat, 18 Feb 2017 13:23:50 GMT

i would leave alone- i agree with brutal, spr and south.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

grillandwinemaster — Sat, 18 Feb 2017 15:33:01 GMT

Best way to lower utilization: PAY IT DOWN! Doesn't matter if your AAofA is 1 year or 10 years. PAY IT DOWN!

Remember, you asked for advice, and you certainly received it. It's up to you what you're going to do with said advice.

Best credit wishes to you!

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Sat, 18 Feb 2017 17:05:24 GMT

@Anonymous wrote:
I'm no expert, but that seems like a lot. You know, inquires stay on your report for 2 years, right? DO NOT open a new card now. If you want to fix your utilization, pay some cards down.

4 cards in 2 years is nothing. And stop over rating inquiries. They have no affect after 12 months.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Sat, 18 Feb 2017 19:16:21 GMT

Your AAOA is pretty good.

Re: Should I apply for a CC to reduce utilization even if it dings the age of MY credit history?

Anonymous — Sat, 18 Feb 2017 19:08:20 GMT

@Anonymous wrote:
Once again, I apologize for my poor word choice. I was actuaaly told I have a weird way of asking things... don't worry! from now on I'll leave it to people who can convey what they mean more!

Understandable. We all do it.