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Open new accounts together to wait?

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Valued Member

Open new accounts together to wait?

Hi there! -- Is it better to open multiple cards close together and let them age together or wait a while in between each account?

 

 

 

 

 

NFCU Amex (9/2019) $31k | NFCU Flagship (12/2019) $15.2k | Nordstrom VS (7/2017) $15k | Amex CM (9/2018) $9.8k | Cap One QS (5/2008) $7k | Chase Freedom (12/2018) $3.8k | EXP/TU - 727
10 REPLIES 10
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Frequent Contributor

Re: Open new accounts together to wait?

When you apply together, your Age of Youngest Account doesn't keep getting reset every couple of months.

But, applying for to many cards together can trigger low limits and Adverse Action from creditors that become concerned you "need" money and are now a higher risk.
2017-09-09 FICO 08: EQ 677, TU 640, EX 705
2020-02-07 FICO 08: TU 789
2020-02-10 FICO 08: EX 752

Gardening, mostly, again until... soon(I need to replace my car)

Message 2 of 11
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Frequent Contributor

Re: Open new accounts together to wait?

And now for actionable advice...

Chase denies on their in-house brands if you have more than 5 new accounts in 24 months (search 5/24), so plan accordingly if you want some of those.

Two cards at once, with 6-12 months of no app-ing in between should give you steady growth of scores and limits.
2017-09-09 FICO 08: EQ 677, TU 640, EX 705
2020-02-07 FICO 08: TU 789
2020-02-10 FICO 08: EX 752

Gardening, mostly, again until... soon(I need to replace my car)

Message 3 of 11
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Super Contributor

Re: Open new accounts together to wait?

There's no single right answer.  If a person doesn't care what cards he gets (he just wants tradelines on his report) and if he doesn't have any presssing needs for credit, then it makes them most sense to open multiple cards within a few days.

 

If however, he is looking for cards with a good signup bonus, then it makes sense to do one's research and only sign up for a card when its promotional offer is especially high.  In that event the person is much more likely to wait until an especially lucrative offer comes along, then sign up for that one card take 3-4 months to meet the spending requirement, etc.

 

If you describe your exact situation people can help you better.  E.g. do you have any accounts?  What are they?  When were they opened?  Do you have any derogs?  Do you need to buy a home or a car in the next couple years -- and if so, when?  Have you pulled your three FICO 8 scores?  Etc.

Message 4 of 11
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Valued Member

Re: Open new accounts together to wait?

This is helpful, thanks for the feedback!

 

A little bit of background: 

I currently have 3 credit cards: Cap one QS (opened in 2008, $5k limit), Nordstrom visa signature (2017, $7k), Amex (Sept 2018, $4k).

0 degs.  TU: 777, EQ: 761, EX: 709 , and a new car lease. 

 

I'm considering opening new accounts because I want to increase my overall limit/decrease my (15%) utilization percentage. 

 

Cap one (my starter card) has denied me CLI since I reached a $5,000 limit about 6-7 years ago. Nordy's has taken me from $2500 -> $7,000 in a year and I opened an AMEX hoping for a higher limit but got $4,000. I've only had it since Sept, so I'm really hoping to increase my limit on this card in the next couple of months.  I've gathered Chase & Discover are often pretty generous with their CLIs so I'm considering adding one of them to my wallet and then moving into the garden for a while as I would like to buy a house in the next 2-3 years. But is it better to grow the cards I have and then open a card closer to the time I purchase a home? I imagine opening bonuses and APRs would really come in handy after buying a house, but will CCs be harder to qualify for? I have no clue what to do. Smiley Indifferent

NFCU Amex (9/2019) $31k | NFCU Flagship (12/2019) $15.2k | Nordstrom VS (7/2017) $15k | Amex CM (9/2018) $9.8k | Cap One QS (5/2008) $7k | Chase Freedom (12/2018) $3.8k | EXP/TU - 727
Message 5 of 11
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Super Contributor

Re: Open new accounts together to wait?


@DH1988 wrote:

I'm considering opening new accounts because I want to increase my overall limit/decrease my (15%) utilization percentage.


 

Have you thought about paying off your CC debt?  That's the best way to have a low utilization. 

 

You can actually have only one card that has a mere $1000 credit limit, spend $3000 a month on it, and have a reported utilization of < 5%.   Big credit limits are not needed for low utilization.  Happy to explain more if you like.

Message 6 of 11
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Senior Contributor

Re: Open new accounts together to wait?


@DH1988 wrote:

This is helpful, thanks for the feedback!

 

A little bit of background: 

I currently have 3 credit cards: Cap one QS (opened in 2008, $5k limit), Nordstrom visa signature (2017, $7k), Amex (Sept 2018, $4k).

0 degs.  TU: 777, EQ: 761, EX: 709 , and a new car lease. 

 

I'm considering opening new accounts because I want to increase my overall limit/decrease my (15%) utilization percentage. 

 

Cap one (my starter card) has denied me CLI since I reached a $5,000 limit about 6-7 years ago. Nordy's has taken me from $2500 -> $7,000 in a year and I opened an AMEX hoping for a higher limit but got $4,000. I've only had it since Sept, so I'm really hoping to increase my limit on this card in the next couple of months.  I've gathered Chase & Discover are often pretty generous with their CLIs so I'm considering adding one of them to my wallet and then moving into the garden for a while as I would like to buy a house in the next 2-3 years. But is it better to grow the cards I have and then open a card closer to the time I purchase a home? I imagine opening bonuses and APRs would really come in handy after buying a house, but will CCs be harder to qualify for? I have no clue what to do. Smiley Indifferent


 

You currently have an Average Age of Account of roughly 4 years.  You may find opening additional accounts to be counter-productive since each new card will further reduce you AAoA and also reset the Age of your Youngest Account to zero; both of those factors are known to cause FICO scoring penalties.

 

Its possible that you may be able to triple your Amex credit limit 61 days after opening the account and that will certainly help your utilization.  But the 3X CLI isn't guaranteed and often depends on the amount of spend you've placed on the card.  Large credit limits are a function of income - lenders are required by law to inquire about your "ability to repay" and that ability is correlated to your income.

 

Why is there such a difference between your EX and your other two scores?  Do you have a delinquency/derogatory reporting on EX?.





Message 7 of 11
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Frequent Contributor

Re: Open new accounts together to wait?

On mobile, so excuse the silly quoting:

"But is it better to grow the cards I have and then open a card closer to the time I purchase a home?”

No. You don't want to open any new accounts (or get hard pulls for other than necessary life activities) in the 12 months prior to seeking a mortgage. (This is the limit of my understanding due to not needing a new mortgage presently. You should seek further advice in the mortgage forum.)
2017-09-09 FICO 08: EQ 677, TU 640, EX 705
2020-02-07 FICO 08: TU 789
2020-02-10 FICO 08: EX 752

Gardening, mostly, again until... soon(I need to replace my car)

Message 8 of 11
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Community Leader
Senior Contributor

Re: Open new accounts together to wait?


@DH1988 wrote:

Hi there! -- Is it better to open multiple cards close together and let them age together or wait a while in between each account?

 

 

 

 

 


My suggestion would be to pay down CC. This will lower utilization. Another suggestion would be to ask for 3x CLI on AMEX on your 61 day after opening. This would raise AMEX to 12k if approved. Helping utilization with only an SP. no new credit, but raising overall CL.

Message 9 of 11
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Valued Contributor

Re: Open new accounts together to wait?

I agree with all that was previously said. If possible, bring your utilization down naturally, by paying it down. But if you do want to get new cards, I personally would make sure that they are meaningful cards for me, rather than opening them just to open them.
                               

Total Credit: $240,100Credit Utilization: 1%AAoA: 5 years, 7 monthsInstallments: Car Lease, Marcus LoanNegatives: 0

LOWES-35k | BOA-32.5k | AMEX-30k | DISC-27.1k | ALLIANT-25k | NFCU-25k | BARC-15k | BBUY-12k | CHASE-10k | WAL-10k | CITI-9.7k | PENFED-9.7k


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