@Anonymous wrote:Hi everyone, 1st time poster, long time lurker.
Short version ( if more info is needed I'll happily comply)
I have -
1 installment loan (grow) >6% util
1 AU (citi bank) 1000 CL
1 secured Disco 2500 CL
1 Chase Sapphire Reserve 10000
(If it matters I keep a >3% utilization on the 2 I have control over)
Should I have an additional revolver since the Citi CC im just an AU on it?
I've read it's recommended to have a 3 to 1 ratio for max FICO. Nothing is over 6 month of age.
No, you're fine.
@Anonymous wrote:Hi everyone, 1st time poster, long time lurker.
Short version ( if more info is needed I'll happily comply)
I have -
1 installment loan (grow) >6% util
1 AU (citi bank) 1000 CL
1 secured Disco 2500 CL
1 Chase Sapphire Reserve 10000
(If it matters I keep a >3% utilization on the 2 I have control over)
Should I have an additional revolver since the Citi CC im just an AU on it?
I've read it's recommended to have a 3 to 1 ratio for max FICO. Nothing is over 6 month of age.
First, I must say, "Bravo!" for having a CSR with a $10K CL at only 6 months of credit history!
If you only want to maximize your mortgage FICO scores and your EX FICO 8 & 9 scores, you're fine with your current setup when you use the AZEO method.
However, if I were you, I would acquire at least one more primary revolving account to maximize your other FICO scores. Why? When using the AZEO method with your current setup to maximize your FICO scores, the "All Zero" (AZ) penalties will knock off at least ~10 to 20 points from your max FICO 8 & 9 scores.
Let's say you choose your Discover card to report a small balance and have the other 2 CCs report $0 balances for AZEO. You'll receive the AZ penalty for having 100% of your AU revolvers reporting a $0 balance.
Let's say you choose your Citi AU card to report a small balance and have the other 2 CCs report $0 balances for AZEO. You'll receive the AZ penalty for having 100% of your primary revolvers reporting a $0 balance.
Let's say you choose your Chase card to report a small balance and have the other 2 CCs report $0 balances for AZEO. You'll receive the AZ penalty for having 100% of your AU revolvers reporting a $0 balance. When you pay your Chase card in full to avoid carrying a balance and paying interest charges, your Chase card will report a $0 balance, and you'll receive an additional AZ penalty for having 100% of your primary revolvers reporting a $0 balance.
Therefore, with your current setup, you would need to have both the Citi AU CC and Discover card post small balances and the Chase CC post $0 to the CBs for your highest FICO 8 & 9 scores. Even so, having 67% of your revolving accounts post with balances will probably lower your TU and EQ FICO 8 & 9 scores a bit from your max possible. (Probably less than the AZ penalty, though.) Having 75% of your accounts post with balances will probably lower your mortgage FICO scores a bit from your max possible.
Frankly, I would replace the Citi AU CC with a primary revolving account, then drop the Citi AU CC from your CRs, because its age is too young and its CL is too low to move the needle until it's at least 2 or 3 years old. At that point, you won't need a 2- or 3-year-old AU account to help boost your FICO scores, unless it has a high CL and you have a high revolving utilization ratio without it. Citi is known for conservative CLs, so I wouldn't put much hope in that possibility.
Unless you plan to apply for a mortgage in the near future, I would wait until your oldest primary account is at least 12 months old before applying for your next Tier 2 CC.
@Anonymous wrote:Hey thanks!!! I was/am more than surprised that I was able to get it also 😆 if it wasn't for my chase bank lady (all my family has gone to) telling me I should go for it I wouldn't have even tried... so to be clear the Citi AU CC is the one with the most "age" as it was opened in Dec 2020, my Secured Discover was opened maybe 3/4 months ago and my CSR will post the 1st statement in 2 days from now... know this info are you recommending I wait 12 months and then get another CC to replace the Citi or are you saying get it now and in one year remove the Citi... also what are some good "tier 2" CC you would recommend.i love the benefits from my CSR so anything along those lines is fine, but Cashback is good also..
Thanks in advance for the reply
@Anonymous: Thanks for the additional info. Definitely keep the Citi AU CC for now, because its age is what's giving you your first FICO scores. To generate FICO scores, EX needs at least 6 months of credit account reports, and TU and EQ need at least 7 months of credit account reports.
When your secured Discover CC (or your installment loan, whichever is older) reaches 12 months old, you can start applying for the Tier 2 CCs and expect to get an approval here and there. Chase Freedom Flex, Chase Freedom Unlimited, unsecured Discover CCs, Citi Double Cash, Amex Blue Cash Everyday, Amazon Store CC, etc., are Tier 2 CCs. Tier 2 CCs generally don't need a lot of credit history to get approved, but it's rare to get accepted with less than 1 year of credit history. They're generally "no annual fee" cards, unlimited 1% to 1.5% cash back or point rewards, and may have special categories with higher bonus rewards, but with a ceiling on how much bonus reward you can earn, either monthly, quarterly, or annually.
For you, I would recommend applying for the Chase Freedom Flex, or Chase Freedom Unlimited, or Amex Blue Cash Everyday after 12 months of your own credit history (don't count the AU credit history) if any of these suit your cash back needs. If you're more interested in point rewards or travel miles, perhaps someone else can make some good recommendations for you.
After your third primary revolving account reports to all three CBs (9 to 11 months from now, because it can take a month or two for the first report), you can drop the Citi AU CC from your CRs if you'd like. But I'd keep it for now, because it's helping your FICO scores.
@Anonymous wrote:I believe the 3 revolvers is for AZEO to be effective. I've read that (so this info may be wrong) that an appropriate credit mix is 1 mortgage, 1 installment loan and 3 revolving line of credit. What the articles didn't say was why or how it affects your scores.
Prior to my app and new account debacle this year, my scores were in the 800s. With that being said score means very little with a thin profile. My husband who had 100+ points less of a score (before my app and new accounts shenanigans) is given high credit lines because his file is thicker. I still have good and very good scores, but my file is thin that it doesn't matter, so from my perspective it's best to let accounts age and then worry about another card (but even I don't listen to myself 😂) scores alone won't get you additional credit.
Whoa, wait. You have 14 items in your sig. That's thinskies? 
)
