topic Would Like to Add a Third CC, but unsure when to do it. in General Credit Topics

Would Like to Add a Third CC, but unsure when to do it.

FICONewbie62 — Thu, 22 Jun 2023 18:36:36 GMT

I have only 1 CI on my latest #3B Report and am thinking about adding a 3rd CC. I receive offers each day via Experian and also see offer in the mail.

My current scores are

EQ 777

TU 788

EXP 758

My total limit on my existing 2 CC is only $7.000, so I would like to increase that. My average age of accounts is 9 years, 3 months.

Just need advice on timing of CC application, the impact of having another Inquiry (temporary/minimal I imagine), and impact of a reduction in the reduction in AAoA.

I have 1 credit union CC, and a Discover IT card.

Any thoughts on the next best steps. Apologies for being a Newbie - this is my first posting.

Thanks in advance for any advice!

Re: Would Like to Add a Third CC, but unsure when to do it.

MileHigh96 — Thu, 22 Jun 2023 15:29:18 GMT

Welcome to the forum!

I would suggest getting one from a CU as you can almost always get a better interest rate and usually you can get really decent credit limits. Just a few I would recommend would be Navy Federal (if you are eligible to join), PenFed, Affinity, and while I'm not a member at BECU, there's been great things reported about them on this forum.

As far as timing or anything like that, doing it any time should be fine with your scores and other DP's you provided. Sure, your score will take a temporary hit, but it won't last long at all.

I'm sure that others will chime in with their thoughts as well. And again, welcome!

Re: Would Like to Add a Third CC, but unsure when to do it.

SouthJamaica — Thu, 22 Jun 2023 16:05:14 GMT

@FICONewbie62 wrote:
I have only 1 CI on my latest #3B Report and am thinking about adding a 3rd CC. I receive offers each day via Experian and also see offer in the mail.
My current scores are

EQ 777
TU 788
EXP 758

My total limit on my existing 2 CC is only $7.000, so I would like to increase that. My average age of accoiunts is 9 years, 3 months.

Just need advice on timing of CC application, the impact of having another Inquiry (temporary/minimal I imagine), and impact of a reduction in the reduction in AAoA.

I have 1 credit union CC, and a Discover IT card.

Any thoughts on the next best steps. Apologies for being a Newbie - this is my first posting.

Thanks in advance for any advice!

Welcome to the forum.

Here's my advice:

1. Forget the "offers"; you figure out what you want and apply for it. Don't let marketing steer your decisions.

2. You've earned very good scores, so you don't have to worry about this application.

3. Yes you'll lose some points short term. In a relatively "thin" profile like yours you might lose 25 points or so, but you'll see them come back within a couple of months. Especially with the fact that you're moving to 3 cards, which gives you an opportunity to shape your utilization more. (E.g., you could let one card report a balance, and have the other 2 report zero balances, which is like steroids for your FICO scores)

So my advice on timing is : Any time you feel like it; you're in good shape.

Re: Would Like to Add a Third CC, but unsure when to do it.

FireMedic1 — Thu, 22 Jun 2023 16:06:19 GMT

What cards do you have now?

Re: Would Like to Add a Third CC, but unsure when to do it.

FICONewbie62 — Thu, 22 Jun 2023 16:43:22 GMT

Thanks so much for the quick responses and the welcome/advice. What a great forum.

I have a Georgia Federal Credit Union CC and a Discover It CC. I practice the AZEO and I stay under 3% on my report day utilization.

Re: Would Like to Add a Third CC, but unsure when to do it.

FireMedic1 — Thu, 22 Jun 2023 16:50:27 GMT

Well of course your going to get a bunch of examples on what to go for. Im newer to AMEX. But man they have treated me right. You can give the AMEX pre-qual a check. The BCP has nice perks and CLI's have been easy at least for me. Went from $1000 to $9500 in 4 months with a BK reporting. Thats my 2 cents.

https://card.americanexpress.com/d/pre-qualified-offers/?utm_mcid=&utm_source=google&utm_medium=cpc&utm_term=%2Bamex%20%2Bprequalify&utm_cmpid=18563723160&utm_adgid=145160111751&utm_tgtid=kwd-1828049119361&utm_mt=p&utm_adid=660654174210&utm_dvc=c&utm_ntwk=g&utm_adpos=&utm_plcmnt=&utm_locphysid=9011497&utm_locintid=&utm_feeditemid=&utm_devicemdl=&utm_plcmnttgt=&utm_programname=axcp&gclid=Cj0KCQjw4s-kBhDqARIsAN-ipH3CnCmcqWZ9mtQdUbvp82MJxiMfD7cYaKRlOvaseA_1IoFQlBehFRsaAlOcEALw_wcB

Re: Would Like to Add a Third CC, but unsure when to do it.

FICONewbie62 — Thu, 22 Jun 2023 18:44:46 GMT

Thanks for that suggestion FireMedic. An additional question I have, after seeing folks with so many cards - how often are you applying for new cards, and doesn't that large number drag down your AAoA to almost nothing??

Re: Would Like to Add a Third CC, but unsure when to do it.

GZG — Thu, 22 Jun 2023 18:50:24 GMT

@FICONewbie62 wrote:
Thanks for that suggestion FireMedic. An additional question I have, after seeing folks with so many cards - how often are you applying for new cards, and doesn't that large number drag down your AAoA to almost nothing??

the more accounts you have, the less impact future accounts have on your AAoA

So it might not be great to go from 9 years to 7 years or something because you only have a few accounts now, lowering of AAoA shouldn't be a reason to not go out and get the credit products that you want.

what do you spend the most on? perhaps that would be a good place to start in order to figure out what CC you might want to apply for

Re: Would Like to Add a Third CC, but unsure when to do it.

FICONewbie62 — Thu, 22 Jun 2023 18:55:29 GMT

Thanks GatoraidZero (I drink that too!),

so, it sounds as if I can stomach the big drop in score for a few months, I will bounce back, and then keep a good score moving forward - even though the AAoA will take a dive.

I see you guys with all of these cards, and I say "how do they do that without getting hammered on their scores". You guys are pros!

Re: Would Like to Add a Third CC, but unsure when to do it.

GZG — Thu, 22 Jun 2023 19:03:27 GMT

@FICONewbie62 wrote:
Thanks GatoraidZero (I drink that too!),

so, it sounds as if I can stomach the big drop in score for a few months, I will bounce back, and then keep a good score moving forward - even though the AAoA will take a dive.

I see you guys with all of these cards, and I say "how do they do that without getting hammered on their scores". You guys are pros!

and rather than just looking at a score or metrics like AAoA, imagine if you could argue your credit report with words instead of numbers, which sounds better:

I had two credit cards over 10 years with an average limit of $3500 and a high limit of $5000 and $7000 in total CL.

I had five credit cards over 10 years, with an average limit of $5,000 and a high limit of $10,000 and $35,000 in total CL.

which person would you lend more money to?

Re: Would Like to Add a Third CC, but unsure when to do it.

FireMedic1 — Thu, 22 Jun 2023 20:25:13 GMT

@FICONewbie62I'll just give you an example. BK filed 8/15. I had no cards. None. Lawyer said you need credit. Come to this place and learn. So 1 by 1 I got a card. I put 6 months in between apps. Started at 560's. As time went on I played a game. Once I hit 700 after the 3rd card. I applied. Approved. Waited after the new card hits rebounded. Here came 700 again. Rinse and repeat. I used to have a badge below. Doing this method I was approved 19 times with 1 denial in 7 yrs. Then the base score was 710's then 720's and after a while 740's. Your starting point is way above most. Get your 3rd card. Set a score. Once you bounce back. Next card. Higher the score and age kicks in as your file grows. HP's will be no hits. AAoA's will hardly move. It only gets better in time.

Re: Would Like to Add a Third CC, but unsure when to do it.

SouthJamaica — Thu, 22 Jun 2023 20:52:01 GMT

@FICONewbie62 wrote:
Thanks for that suggestion FireMedic. An additional question I have, after seeing folks with so many cards - how often are you applying for new cards, and doesn't that large number drag down your AAoA to almost nothing??

I applied frequently when I felt I was in a building phase.

Yes it took a heavy toll on my scores especially my mortgage scores.

Once I had plenty of cards, I slowed down.

Re: Would Like to Add a Third CC, but unsure when to do it.

FICONewbie62 — Thu, 22 Jun 2023 21:09:40 GMT

Ok, well I will start adding accounts and wait between each for the score to recover. I am thinking about adding 3 cards over the next couple of years - so that will work out I think.

I really appreciate all of the comments and advice.

Re: Would Like to Add a Third CC, but unsure when to do it.

FireMedic1 — Thu, 22 Jun 2023 21:14:36 GMT

@FICONewbie62 wrote:
Ok, well I will start adding accounts and wait between each for the score to recover. I am thinking about adding 3 cards over the next couple of years - so that will work out I think.

I really appreciate all of the comments and advice.

Looking at your scores in the opening post. Set 750 as your base. Adding a 3rd card will help also. FICO likes at least 3 with 1 reporting.

Re: Would Like to Add a Third CC, but unsure when to do it.

FICONewbie62 — Fri, 23 Jun 2023 18:59:08 GMT

Well - here is an update. I applied for a Apple card and was approved for a $7,000.00 limit! I do have a hard inquiry - so that means just two showing on my 3B reports now. An earlier inquiry will drop off in August - leaving me with just the one.

Thanks again for all of the help on this!

Re: Would Like to Add a Third CC, but unsure when to do it.

SouthJamaica — Fri, 23 Jun 2023 19:19:12 GMT

@FICONewbie62 wrote:
Well - here is an update. I applied for a Apple card and was approved for a $7,000.00 limit! I do have a hard inquiry - so that means just two showing on my 3B reports now. An earlier inquiry will drop off in August - leaving me with just the one.

Thanks again for all of the help on this!

Congratulations on your approval.

Re: Would Like to Add a Third CC, but unsure when to do it.

FICONewbie62 — Fri, 23 Jun 2023 19:29:31 GMT

Thanks SouthJamaica. That is an impressive amount of credit you have built up there! Thanks for helping out a bottom feeder!!!!

Re: Would Like to Add a Third CC, but unsure when to do it.

SouthJamaica — Sat, 08 Jul 2023 12:15:14 GMT

@FICONewbie62 wrote:
Thanks SouthJamaica. That is an impressive amount of credit you have built up there! Thanks for helping out a bottom feeder!!!!

You're not a bottom feeder.

A bottom feeder is Credit Karma, which --- for financial gain --- falsely implies to its readers that the more cards they have, the better their scores will be. I was totally misled by CK when I started out in this process, and acquired a lot of cards under a total misconception. They had a pyramid graphic, which implied that 5 cards was fair, 10 was good, and 15 was excellent. Only after I'd acquired 15 credit cards did I learn that this was a complete crock. By then, though, I was hooked on the endorphin rush that accompanies approvals.

The truth of course is that one can easily get perfect credit scores with 3 to 5 credit cards.

Re: Would Like to Add a Third CC, but unsure when to do it.

FICONewbie62 — Sat, 08 Jul 2023 10:21:36 GMT

Well, I thought it would be helpful to others to begin reporting back on the hits my scores have taken as a result of the new card.

The first impacts were notices about the hard inquiry from Apple Card. Then, once the approval was granted, the additional card hits began.

Here are the current score hits:

EQ 778 down 8 to 770

EX 758 down 39 to 719

TU 792 down 10 to 782

Experian seems quick to drop, and very slow to recover - even on minor changes.

Another interesting observation from the past few months is that even slight balance increases (though still well below 6% cumulative and individual) will sometimes cause a score decrease. I don't understand those changes - as they seem to contradict the max point guideline for 1-6% utilization.

Oh well, "Onward and Upward"😀

Re: Would Like to Add a Third CC, but unsure when to do it.

SouthJamaica — Sat, 08 Jul 2023 12:17:51 GMT

@FICONewbie62 wrote:
Well, I thought it would be helpful to others to begin reporting back on the hits my scores have taken as a result of the new card.

The first impacts were notices about the hard inquiry from Apple Card. Then, once the approval was granted, the additional card hits began.

Here are the current score hits:
EQ 778 down 8 to 770
EX 758 down 39 to 719
TU 792 down 10 to 782

Experian seems quick to drop, and very slow to recover - even on minor changes.

Another interesting observation from the past few months is that even slight balance increases (though still well below 6% cumulative and individual) will sometimes cause a score decrease. I don't understand those changes - as they seem to contradict the max point guideline for 1-6% utilization.

Oh well, "Onward and Upward"😀

Trying to measure cause and effect relationships between score changes and minor balance changes is an impossible task, unless you were to have daily updates of your reports and scores.