Hesitating between 2 cards - credit reporting

[MrCreditInternational]

---

@Anonymous wrote:

@ Birdman7 : Thanks! I looked at the prequals but I do not have any yet, probably because my credit history is less than a year! Will probably be hard for me to be an AU, but will look into that

@ MrCreditInternational : My direct deposit is with Chase. I checked prequals online but do not have any so far. As I don't have a year long credit history I am for now on

just waiting anyway to have better odds later.

Regarding the 10K limit, I am counting on the x3 CLI with Amex that I will be able to request within the next few months.

As of the 6 month safety wait after getting my last card, were you talking about Chase or was it regarding the card I want apply to right now?

---

---

In that case, I would say apply in branch. The reason is if you get denied then your banker can call them and tell them that you have a healthy checking account and all, and might be able to get you recon without you calling.

I recommend waiting until your youngest card is 6 months old before getting a chase card. Also assuming you get that Amex 3x CLI, make sure you wait until it's reported on all your reports (it doesn't update instantaneously)

Finally, I would recommend applying for the freedom or the freedom unlimited now since you're more likely to get approved for those, especially that you have a checking account with them with direct deposit.

[Anonymous]

Thanks for your answer! I would definitely prefer getting the FU as a third card now. My only concern was the fact that my oldest account is only 7 m.o. But I can try applying in a branch, or at least check if I have any prequal in branch.

[Anonymous]

Went to a branch today, no prequals so far. I decided not to apply as the banker also advised me to wait for my oldest account to hit the 1 year mark.

I am just puzzled now : will a third card from another institution that I would get now be useful 6 months from now with Chase

[MrCreditInternational]

3 (or 5) cards give you a boost for FICO and it shows banks that you can manage debt better than people with one or two cards. I think it's the threshold to be considered to have a thick file.

Also applying now for a 3rd card will help your AAoA later when you apply for chase in 6-12 months

[Anonymous]

Respectfully disagree. How would it help his AAOA in 6 to 12 months when he applies for a Chase card?

It’s an average, every time you add a new card it gets lower. Consider this, if his average age now were seven months and he got another and it brought him down to five months, then six months from now his average age would be 11 months versus the 13 months it would be if he did not.

So adding a third card now would LOWER his AAOA, both now and later. As a matter fact, anytime you add a new card, it lowers AAOA.

However, with that said, I am a proponent of getting multiple cards early because it gives you more weight at the beginning of your credit file to counterbalance the cards you may get MANY years down the line.

Getting several cards early on in my opinion is a great idea. 10 years from now they will be very helpful because any new cards will not affect his AAOA as much as they otherwise would.

But in the short term it’s only going to hurt him by lowering his AAOA, and more importantly it’s going to reset his AOYA, which will then require him to wait another 12 months optimally before he gets his score boost for the youngest account turning 12 months old so he has the best chance with his app for the chase card.

In sum, applying for a third and/or subsequent cards now or in the near future will help his AAOA years down the line when it will cause newer cards to have less effect lowering his AAOA, but not in 6 to 12 months down the line when may attempt a Chase.

Besides, AAOA is a small factor overall. IMHO, Chase is going to care more about the age of your youngest account then they will your average age accounts on your young file.

I would wait 12 months just like the banker said from the age of your youngest account. If you open another one now, you’ve got to wait another 12 months to give yourself the best chance. You’re better off to just wait till your youngest account is 12 months old and get your Chase and another card or two if you like. But no more than that or you risk AA from Chase.

[MrCreditInternational]

---

@Anonymous wrote:
Respectfully disagree. How would it help his AAOA in 6 to 12 months when he applies for a Chase card?

It’s an average, every time you add a new card it gets lower. Consider this, if his average age now were seven months and he got another and it brought him down to five months, then six months from now his average age would be 11 months versus the 13 months it would be if he did not.

So adding a third card now would LOWER his AAOA, both now and later. As a matter fact, anytime you add a new card, it lowers AAOA.

However, with that said, I am a proponent of getting multiple cards early because it gives you more weight at the beginning of your credit file to counterbalance the cards you may get MANY years down the line.

Getting several cards early on in my opinion is a great idea. 10 years from now they will be very helpful because any new cards will not affect his AAOA as much as they otherwise would.

But in the short term it’s only going to hurt him by lowering his AAOA, and more importantly it’s going to reset his AOYA, which will then require him to wait another 12 months optimally before he gets his score boost for the youngest account turning 12 months old so he has the best chance with his app for the chase card.

In sum, applying for a third and/or subsequent cards now or in the near future will help his AAOA years down the line when it will cause newer cards to have less effect lowering his AAOA, but not in 6 to 12 months down the line when may attempt a Chase.

Besides, AAOA is a small factor overall. IMHO, Chase is going to care more about the age of your youngest account then they will your average age accounts on your young file.

I would wait 12 months just like the banker said from the age of your youngest account. If you open another one now, you’ve got to wait another 12 months to give yourself the best chance. You’re better off to just wait till your youngest account is 12 months old and get your Chase and another card or two if you like. But no more than that or you risk AA from Chase.

---

Completely agree with you

I guess I wasn't clear enough

Thanks for the thorough explanation!