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Planning ahead what's my next move?

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Anonymous
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Planning ahead what's my next move?

I'm looking to build my credit and get some cards under my belt. I do understand that the most important factor is TIME. While I can't control that, I do want to try and plan for the long term.
I don't have any specific goals at the time like mortgage, car or specific cards that I need. However, I do want to build up my portfolio, resposibly of course.

Here's what I have.

Score:

EX 704

TU 708 (CK)

EQ 697 (CK)

 

Cards:
Barclay JB $500 CL 62% UTIL 15 Months (I missed the payment cutoff)
Amex EveryDay $1,000 CL 0% UTIL 4 Months
Barclay Arrival+ $2,500 CL 0% UTIL 1 Month
AU Discover $500 CL 0% UTIL 41 Months (CLOSED)

I understand that opening many cards at once doesn't look good on my report and significantly lowers my AAoA, even more so when my oldest account is so young. However, I'd like to know if it would pay off as time goes by. As I said in the beginning, I have no specific need for credit at the moment. So, if it will greatly pay off in 3 years to have 5-6 cards with a 3-year AAoA instead of just 3 cards, I would do it even if it lowers my credit momentarily. Likewise, I don’t care if my SL’s are low.
Based on that and if I’m advised to go for it, what cards should I get? I do want to get some Chase and Amex cards as I do think they have some of the best and most premium cards. Other than that I have no preference.

2 REPLIES 2
Anonymous
Not applicable

Re: Planning ahead what's my next move?


@Anonymous wrote:

I'm looking to build my credit and get some cards under my belt. I do understand that the most important factor is TIME. While I can't control that, I do want to try and plan for the long term.
I don't have any specific goals at the time like mortgage, car or specific cards that I need. However, I do want to build up my portfolio, resposibly of course.

Here's what I have.

Score:

EX 704

TU 708 (CK)

EQ 697 (CK)

 

Cards:
Barclay JB $500 CL 62% UTIL 15 Months (I missed the payment cutoff)
Amex EveryDay $1,000 CL 0% UTIL 4 Months
Barclay Arrival+ $2,500 CL 0% UTIL 1 Month
AU Discover $500 CL 0% UTIL 41 Months (CLOSED)

I understand that opening many cards at once doesn't look good on my report and significantly lowers my AAoA, even more so when my oldest account is so young. However, I'd like to know if it would pay off as time goes by. As I said in the beginning, I have no specific need for credit at the moment. So, if it will greatly pay off in 3 years to have 5-6 cards with a 3-year AAoA instead of just 3 cards, I would do it even if it lowers my credit momentarily. Likewise, I don’t care if my SL’s are low.
Based on that and if I’m advised to go for it, what cards should I get? I do want to get some Chase and Amex cards as I do think they have some of the best and most premium cards. Other than that I have no preference.


If you have no need for credit at this time and you can't pinpoint a card that you want/need then I would say don't apply.  Applying and lowering your AAoA is a necessary evil in life.  Figure out what cards you want and will use to benefit your personal lifestyle.  Your profile is very young and you have plenty of time to let things grow.

Message 2 of 3
Anonymous
Not applicable

Re: Planning ahead what's my next move?

3 new accounts is sufficient to build off of.

 

I would wait until your youngest hits 12 months just to solidify things and give them a chance to CLI a couple of times before hitting the pavement running.  Some of the better cards require 1 year+ in age/history of payments and a minimum CL of 5K or 10K depending on your target.  Amex would be the easier of the two if you were to do it today.  If you wait though you increase your odds of a higher CL and not having to call and beg for an approval due to short history and low limits.

 

In a year though things should change dramatically on the approval front since your oldest would be 2.5 years and youngest 1 year.  Then I would probably round it out w/ 1 Chase and 1 Amex to put you at 5 cards and wouldn't be as big of a hit to your scores vs 3+ new cards at that time.  You already have an Amex which means whatever you choose next will be a SP most likely if you hit apply and it says "pre-approved".

 

I would look into BOA / Disco  though as they both tend to grow nicely if you work them right.  Both offer SP CLI's at this point like Amex. 

 

You have 2 w/ Barclay's which personally I try not to have more than 2 cards with any lender for diversification purposes in case I decide to leave a bank or they ask me to leave.

Message 3 of 3
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