Open new card to drop utilization?

[ADHDINFINITY]

Credit profile:
EQ: 744, EX: 741, TU: 755

I have 5 credit cards with a combined limit of $10,000 and my overall utilization is at 20%. I've opened 2 cards in the last 12 months (the last one was 10 months ago). The average acc age is 1 year and 11 months. 100% on-time payments.

I recently checked my Apple Card offer and was offered $8500 at 21%. If I take the offer my utilization will drop to about 10% but my average account age will drop to 1 year and 5 months.

My question is will the drop in acc age hurt my score more than the drop in utilization with help it? I understand that nobody can tell me anything for sure... I just want some opinions.

Thanks!

[JoeRockhead]

My opinion is that it won't help as much as it will hurt. You'll be taking a score hit for the new account, plus you'll also get moved to a different score card for having a new account under a year old. If you're not looking at a major purchase within the next year, you'll build points back through responsible usage and payment history. 

You could also improve you aggregate utilization % by asking any of your current lenders that offer soft pull increases for CLIs. 

My 2 ¢

[GZG]

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@ADHDINFINITY wrote:

Credit profile:
EQ: 744, EX: 741, TU: 755

I have 5 credit cards with a combined limit of $10,000 and my overall utilization is at 20%. I've opened 2 cards in the last 12 months (the last one was 10 months ago). The average acc age is 1 year and 11 months. 100% on-time payments.

I recently checked my Apple Card offer and was offered $8500 at 21%. If I take the offer my utilization will drop to about 10% but my average account age will drop to 1 year and 5 months.

My question is will the drop in acc age hurt my score more than the drop in utilization with help it? I understand that nobody can tell me anything for sure... I just want some opinions.

Thanks!

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bad for your temporary score, good over time for your overall credit profile

adding a $8k card when your average credit limit is $2k is a positive thing and will bold well for you when you ask for credit line increases or try to get cards in the future 

honestly though?

the real fact is that you only owe 2 grand, I wouldn't even worry about your score

put your head down, work as many hours as you can, don't spend a penny that you don't physically have to survive and pay it off as fast as humanly possible 

[SouthJamaica]

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@ADHDINFINITY wrote:

Credit profile:
EQ: 744, EX: 741, TU: 755

I have 5 credit cards with a combined limit of $10,000 and my overall utilization is at 20%. I've opened 2 cards in the last 12 months (the last one was 10 months ago). The average acc age is 1 year and 11 months. 100% on-time payments.

I recently checked my Apple Card offer and was offered $8500 at 21%. If I take the offer my utilization will drop to about 10% but my average account age will drop to 1 year and 5 months.

My question is will the drop in acc age hurt my score more than the drop in utilization with help it? I understand that nobody can tell me anything for sure... I just want some opinions.

Thanks!

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IMHO in the short run the inquiry, lowering of average age of accounts, and resetting age of youngest account will cost more points than you gain from the decrease in utilization percentage. But when you're at an early stage, and want to build a collection of useful cards, that's a price you need to pay. Question is whether the Apple card is something you really want.

[unsungivy]

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@JoeRockhead wrote:

You could also improve you aggregate utilization % by asking any of your current lenders that offer soft pull increases for CLIs. 

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This. Do this. 10k across your multiple cards is not very high; you have a lot of room for growth especially if you are putting a lot of spend through them. The soft cap is usually 25k, fyi.

[FicoMike0]

It would be helpful to get util under 9%. Can you do that by gaming when you pay, or are you carrying a balance? If the latter, best to buckle down and pay it off. That will boost score. Since your youngest account is 10 months, you're only 2 months from a bump for aoya > 12 months.

As others have said, do you really want the Apple card? Otherwise, app existing cards for cli.