@FreedomHammer wrote:I have a Self lender card opened in Feb 2020, a Capital One QS (upgraded from Platinum; bucketed at $600 CL opened in November 2020, and Apple Card $6600 CL opened in March 2021.
I believe I might have asked this question previously -- since I purchased a myFICO subscription, it's telling me "many new accounts."
How long will it take for these accounts to no longer be penalized as being new?
Is it one year of history per account that they are no longer considered new for FICO8 and FICO9 Bankcard scoring purposes or seen as being risky due to limited revolving history?
I would love to add another two revolvers (and sit on those accounts for years with no further openings) for a goal of five revolvers; however, I don't want to waste inquiries or spook the lenders I currently have.
Would it be prudent to wait two years, say, until 2023 when all accounts are at least two years old before attempting another revolving credit card?
My Average age of open revolving accounts is approximately ten months. I do have closed student loans, but that's a debacle, as some were removed from Experian.
I don't believe the algorithms work that way. There's no specific cutoff for when an account is new or not new.
There is an important metric, age of most recent account. People usually get some kind of bump when their youngest account hits 3 months, 6 months, and 12 months.
There's another important metric, average age of accounts. We are always looking for the thresholds there. But 3 years and 3 years 6 months seem to be significant.
It's always better for your scores to not apply for anything. But then, what's the purpose of building your credit scores if you can't actually take advantage of them from time to time?
I made a considered decision at one point that I was going to try to add accounts, and just take the heat on my scores. And I think the trick was to keep my utilization so low that the great utilization factors were propping me up against my sorry "aging" factors. I'll call this my "expansion" phase. The low utilization helped keep my FICO 8's decent, but my mortgage scores were consistently lower because they are more focused on "newness" than on utilization.
Then, when I had enough in terms of number of accounts, and credit limits, I made a second considered decision to keep on applying for new accounts while I was dropping other accounts that weren't as good for my purposes. I'll call this the "improvement" phase. In that phase too I had to make my utilization very pretty to offset the beating I was taking for newness. There again the low utilization helped my FICO 8's but didn't help my mortgage scores much.
You don't say what your scores are now, so I can't comment on whether you would be "wasting" hard pulls. But I would say generally that it's a balancing act. You have to decide on your priorities. If you want to expand to 5 cards, you need to apply for something now and then, and take the heat for it. If you tell us your scores and utilization numbers, and let us know what kind of card you would like to add, we can probably give you some thoughts.
@GatorGuy wrote:
@SouthJamaica wrote:
@FreedomHammer wrote:I have a Self lender card opened in Feb 2020, a Capital One QS (upgraded from Platinum; bucketed at $600 CL opened in November 2020, and Apple Card $6600 CL opened in March 2021.
I believe I might have asked this question previously -- since I purchased a myFICO subscription, it's telling me "many new accounts."
How long will it take for these accounts to no longer be penalized as being new?
Is it one year of history per account that they are no longer considered new for FICO8 and FICO9 Bankcard scoring purposes or seen as being risky due to limited revolving history?
I would love to add another two revolvers (and sit on those accounts for years with no further openings) for a goal of five revolvers; however, I don't want to waste inquiries or spook the lenders I currently have.
Would it be prudent to wait two years, say, until 2023 when all accounts are at least two years old before attempting another revolving credit card?
My Average age of open revolving accounts is approximately ten months. I do have closed student loans, but that's a debacle, as some were removed from Experian.
I don't believe the algorithms work that way. There's no specific cutoff for when an account is new or not new.
There is an important metric, age of most recent account. People usually get some kind of bump when their youngest account hits 3 months, 6 months, and 12 months.
There's another important metric, average age of accounts. We are always looking for the thresholds there. But 3 years and 3 years 6 months seem to be significant.
It's always better for your scores to not apply for anything. But then, what's the purpose of building your credit scores if you can't actually take advantage of them from time to time?
I made a considered decision at one point that I was going to try to add accounts, and just take the heat on my scores. And I think the trick was to keep my utilization so low that the great utilization factors were propping me up against my sorry "aging" factors. I'll call this my "expansion" phase. The low utilization helped keep my FICO 8's decent, but my mortgage scores were consistently lower because they are more focused on "newness" than on utilization.
Then, when I had enough in terms of number of accounts, and credit limits, I made a second considered decision to keep on applying for new accounts while I was dropping other accounts that weren't as good for my purposes. I'll call this the "improvement" phase. In that phase too I had to make my utilization very pretty to offset the beating I was taking for newness. There again the low utilization helped my FICO 8's but didn't help my mortgage scores much.
You don't say what your scores are now, so I can't comment on whether you would be "wasting" hard pulls. But I would say generally that it's a balancing act. You have to decide on your priorities. If you want to expand to 5 cards, you need to apply for something now and then, and take the heat for it. If you tell us your scores and utilization numbers, and let us know what kind of card you would like to add, we can probably give you some though.
What was your rate of applying for new cards during your expansion and improvement phase?
I don't know. I always had too many recent inquiries and too many recently opened accounts.
@FreedomHammer wrote:Absolutely. I don't need any more credit cards.
Thing is, when I login to Experian, I'm told I'm considered risky as my file is thin and "check out these offers", and that five accounts is the sweet spot.
A credit site saying "check out these offers" is something to be ignored.
