Question about avoiding AA with personal loan

[BobbyInCO]

Long time lurker and have learned a ton. Thanks!

My scores are hovering in the low 800s (high 700s for Experian since there are more inquiries there) and I keep getting bullets about not having a personal loan in my report. I usually ignore those since I don't want to grab credit if I don't need it. I have had a car loan (paid and closed) and a personal loan (2018 and paid and closed later that year) but don't have any open now. But my question for the group is about maybe taking a new loan out.

I usually pay in full and have about 15 open revolvers and an Amex Platinum. I have about $150k credit available and usually report about $1k each month so overall utilization is pretty low and no baddies or anything. I rotate my cards and spend roughly 3-4k per month. However, I did open 10 of those cards in 2019. My average age is about 5 years, youngest 2 months, with 10 inquiries on Experian and 2 each on Equifax and Transunion.

I recently came back from vacation and ran up about $4k in new cc debt and then booked another $4k for a cruise in the new year. I'm thinking about taking a small personal loan so I don't carry the card balances at the higher rate. Amex and PenFed have me prequalified with a great rate, but I'm nervous with the new credit to get adverse action from one of the creditors I have. I did try to get the BofA Norwegian Cruise CC last week since that's a cruise I'm taking soon and got declined (haven't received the letter yet for reason, but assuming it's credit seeking).

Do you think I would be OK with a 10k personal loan or would that spook one of them? My cards are with Discover, Elan Financial, Amex, Citi, Chase, PenFed, Commerce Bank, Wells Fargo, and Comenity. Most are in the 10k range but would hate to have any of them drop a limit down.

[FireMedic1]

Welcome @BobbyInCO  You can get a $1000 loan or $10,000 loan. Its FICO looking for some type of installment account open on your credit reports. If PENFED pre-apporoved. Grab a smaller than 10g loan. Could be 5g's or 3g's. Lower amount, longer term, less spooking. Good Luck!

[BobbyInCO]

Thanks. I think I'll go that route and request something under 10k. Is there something particular about that amount? I am planning some small home redomeling early next year so likely would want more, but don't trust myself to request a big lump now.

[Anonymous]

That said, I'm not sure the points gained by having an open installment loan are that beneficial? Short term anways. By the time you use a HP and especially with so many new accounts further decreasing AAoA?  Only to be paid and closed again in a couple years.

As an alternative you might look into SSL to satify that criteria for longer. However the Loan will be less interst than teh CC on that $8K debt. 

Though you might also just take advantage of BT, if you other CC's have that option. Surely PenFed would, and I know Discover always has a BT promo offer for me. 0% APR is best after all.  Between Citi, Discover and a third you could also keep Util low by spreading it out.

BofA has a new rule about recent accounts unless you're an existing customer, so that may be what it is.

[tcbofade]

You needn't worry about AA regardless of the path chosen here, you're doing fine.

Adding an open installment loan will improve your Fico 8 scores.

... using 0% on existing credit card accounts and / or BTs to a new account will save you dollars.

Me?  I'd rather save the dollars.

Doing both or neither is fine.  You're over thinking this one. 

[Anonymous]

You opened 10 cards in 2019 and you are wondering if you should do some further credit-seeking?

I think you know the answer to that question already and may be looking for a way around the answer you know is correct.

Opening 10 accounts in a year is very excessive. (who am I to talk? I've opened 8, but I've got a VERY old and thick file...still risky tho.) IMHO, you should cool your jets. When did you open the Chase and AmEx accounts? I'd be most concerned about them.

Do some balance transfers with what you've got. If you picked 10 cards and none of them can help you, then you apparently chose the wrong cards. If you proceed, don't say you weren't warned.

Yeah, an installment loan will help your FICO 8s, once you pay it under 8.9%, but your scores are already high enough, you don't need it, especially now, after opening 10 accounts in a year. Not trying to be judgmental, but you know 10 is excessive.