Good credit strategy?

[Anonymous]

I recently got an AMEX Plat card (12/11) after a long hiatus of not using AMEX.  I was presently surprised to see that the AMEX card was reporting the date of account back to 1989 when I originally had an AMEX card.  I also got another trade line that is bringing my average age of cards down.

Would it be a good strategy to get another AMEX card like their Blue Cash Card which would hopefully report also as 1989 start date to increase my average age?  Has anyone done this as well?  Also, anyone else aside from AMEX do this?

[AndySoCal]

AMEX is known for backdating member accounts which is what they did in your case. This will help your score.  I would ask AMEX if you applied for Bleu cash if thye would back date this one before you apply. If they will I would think about it.  The Amex platinum is a charge card which will not factor in your credit utilization  I see for AMEX web site that they will give you 25,000  point if you spend  2000 in the first three months.

[hateAshbury]

while Platinum or Gold or Green might not help with lowering utilization, it does help with AAoA, yes?

[Anonymous]

Yes it seems like it is taking my AMEX into my average age.  As for the utilization comment, I understand that the newer TU scores don't take it into account according to comments made by some FICO reps in the past.  But I know on at least one of my recent letters for either a credit card or loan, they quoted high utilization as a negative on my score which could only refer to the AMEX account as it is the only thing with any kind of balance.  Personally, I am taking no chances anymore.  I think it is looking at reported high balance and current balance (in my case, the same).  I let a high balance stand and then demanded AMEX credit bureau unit report my balance after my payment.  This way it will report a high balance and low or zero current balance.

[Anonymous]

BTW, that is the whole idea of this strategy.  Add some more AMEX cards that will report old dates which will help age of accounts.  I think this might be very helpful for those who had AMEX cards back in the day.  In my case, it was in college when I got it and then cancelled it.  In others, it might be because they got one from their old employer.  Being able to add a card and recapture all those years is great.

[jdogi]

Heck yea it's a good strategy.  AMEX can be a good partner and this is one reason.  They will backdate your next card automatically.  Obviously, you will take an EX inquiry, so you may want to wait if you have any big purchases coming up, like car/home.  If your scores are high enough that you have no concern about getting the best rates, regardless of a new inquiry, then I say do it now...and let us know when you're appoved so we can help you celebrate.

[AndySoCal]

With charge cards (those where balance is duew in full each month) are not factored in your utilization so it does not matter if the high balance is reported or not or when the balance is reported..