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Since July I have opened 5 new credit accounts: 1. Barclay Arrival+ 2.5k, 2. NFCU Flagship 24k, 3. AMEX Delta Gold 1k, 4. Chase Marriot Rewards 5k, 5. Discover it 1k.
Inquiries: TU: 3 EX: 4 EQ: 3
Utilization total 14% - Soon to be 7%
1 Installment loan active @ 52% (Auto)
My aaoa is only 1.5 years and is bound to drop once the last two cards start reporting, estimating around 7mo when it is all said and done. I am trying to solidify the aaoa by getting enough accounts around the same time so that they age together. I also plan on shopping for a mortgage towards the end of next year.
I am on the fence, should I apply for any more or just let these 5 accounts age?
Catch back up to 12 months AAoA. Use an AAoA spreadsheet to calculate/estimate what happens then.
Right now my oldest account is 62 months with an AAoA of 11 months. In a year or so, opening new accounts will never drop me below 24 months even if I apply for 1 new card every other month going forward because I'll have aged all my accounts thick enough to prevent dropping significantly.
I believe in 2019 I can apply for 6-7 new accounts and never fall below the 24 month AAoA derogatory level.
@Anonymous wrote:Catch back up to 12 months AAoA. Use an AAoA spreadsheet to calculate/estimate what happens then.
Right now my oldest account is 62 months with an AAoA of 11 months. In a year or so, opening new accounts will never drop me below 24 months even if I apply for 1 new card every other month going forward because I'll have aged all my accounts thick enough to prevent dropping significantly.
I believe in 2019 I can apply for 6-7 new accounts and never fall below the 24 month AAoA derogatory level.
Is < 24 months actually considered "derogatory"?
OP, interesting that your approvals ranged from $1k to $24k.
The answer to the question here really only you can answer. If there would be an added benefit by adding another card or cards, it may be worth it. There is absolutely no scoring benefit associated with having more than the 5 cards you have now though. If I were you, I'd just garden from now until it's mortgage time, which you suggest is in about a year.
@mkhan1093 wrote:
Is < 24 months actually considered "derogatory"?
Well anything that brings your score cap down from 850 is considered less than prime, for sure!
But in terms of overall credit age thickness, getting to 24 months AAoA with a thick profile (5 CCs or more) means just a little bit "down the line" new accounts won't drag your AAoA down much at all. As I mentioned, my profile is thick enough now that in a year or so, I can do 6 new accounts and not drag AAoA down at all as long as I app every other month. After that point, it's going to be really difficult to bring it down even with a ton of new accounts.
Cumulative aging with many accounts adds up quickly, and if you're not able to get any benefits from more new accounts now, you may get some benefits later with better SUB offers (or retention offers for closing accounts). If you're not getting the top tier SUB offers now, you might just have a thin profile that needs the garden.
I would leave the garden today for a premium SUB offer. I'm not getting those, so I'm waiting for them.
@mkhan1093 wrote:
@Anonymous wrote:Catch back up to 12 months AAoA. Use an AAoA spreadsheet to calculate/estimate what happens then.
Right now my oldest account is 62 months with an AAoA of 11 months. In a year or so, opening new accounts will never drop me below 24 months even if I apply for 1 new card every other month going forward because I'll have aged all my accounts thick enough to prevent dropping significantly.
I believe in 2019 I can apply for 6-7 new accounts and never fall below the 24 month AAoA derogatory level.
Is < 24 months actually considered "derogatory"?
Not derogatory but you get rewarded by FICO at the 24 month mark.
Why do you want more cards, you have a nice wallet already? Why not garden and grow those limits. I would concentrate on your mortgage and not app for more cc's. I would not want to drop my AAoA when I am looking to apply for a mortgage. More credit cards will not help your mortgage underwriting. YMMV.
@driftless wrote:
Not derogatory but you get rewarded by FICO at the 24 month mark.
Yeah, "derogatory" is the wrong word in this case, but I can't think of a better one. To me, derogatory means something bad has happened, like late payments and such. Saying that one is "rewarded" is probably the way to go.
OP, you're saying that you're thinking in terms of a mortgage at the end of the year. If that's the case, stop right now. Ideally, you want to let new accounts age at least six months before applying for a mortgage. A year is even better.
@Anonymous wrote:OP, interesting that your approvals ranged from $1k to $24k.
The answer to the question here really only you can answer. If there would be an added benefit by adding another card or cards, it may be worth it. There is absolutely no scoring benefit associated with having more than the 5 cards you have now though. If I were you, I'd just garden from now until it's mortgage time, which you suggest is in about a year.
Not so unusual. Only the NFCU is large, the rest are typical early-credit-life approvals, with the need to show history to those banks to grow the CL.
I think OP may have difficulty finding another useful card, and several of these have a path for SP CLI.
With a mortgage planned soon, I’d stop here. Those INQ will only just be getting out of the way a year from now.
Based on your scores and the fact you're looking to get a mortgage, get in the garden and let these accounts age. It won't help you any if you continue getting new accounts from a mortgage standpoint (it will make things harder in fact)
During the mortgage process keep your UTL low. as low as you can. don't max out anything. My mortgage was very easy but I also slowed my roll a year prior. Depending on the type of loan you're tryng to get, and the amount you'll be putting down, you're going to need to be at the highest scores ( I believe right now thats a 740). Use this next 12-18 or so months to get things down to a dull roar. Lots of new(ish) inquiries can spook any bank you'd work with. Good luck