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New Acc. VS AAOA lowered point penalties

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Mdowning30
Established Contributor

New Acc. VS AAOA lowered point penalties

What am i better off doing in terms of losing a couple points if i ask Chase for a CLI on my Freedom Unlimited card or apply for the Amex BCE and possibly just get a soft pull, but will lower my account age ?

Chase Freedom Unlimited : $6000 | Discover It Chrome : $3500 | AmEx CS Investor : $6000 | Chase Sapphire Preferred : $5000 | Chase Amazon Prime : $2000 | AmEx Hilton Surpass : $1000 | AmEx Business Plus : $2000 | AmEx Platinum CS : POT $2800 | Tower Federal CU : $15,000 | Lowes Commercial Account : $1,000 | WF Bilt Mastercard : $4,000 | Shell Fleet Plus : $1,000
Total Credit Limit : $42500
Experian FICO 8 : 694
| Experian Vantage : 701 | TransUnion FICO 8 : 683 | TransUnion Vantage : 695 | Experian FICO 9 : 665
Starting Score: 512
Current Score: 693
Goal Score: 700+

Take the myFICO Fitness Challenge
7 REPLIES 7
GatorGuy
Valued Contributor

Re: New Acc. VS AAOA lowered point penalties

Asking for a CLI would only result in a HP not a new account. It would most likely be less of a score hit than opening a new credit card. 

Message 2 of 8
SouthJamaica
Mega Contributor

Re: New Acc. VS AAOA lowered point penalties


@Mdowning30 wrote:

What am i better off doing in terms of losing a couple points if i ask Chase for a CLI on my Freedom Unlimited card or apply for the Amex BCE and possibly just get a soft pull, but will lower my account age ?


It depends what else is in your profile.

 

E.g., when my AoYA was > 12 months, and I added a new account, my EX FICO 8 dropped 26 points.  Usually adding an HP or a new account has little effect on me, but my file is what they call "thick". I.e. with my profile on a typical day, neither applying for a CLI with a HP or adding a new account with a SP would likely have any impact at all.

 

So in order to answer your question, we'd need to know what's in your profile.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 3 of 8
Mdowning30
Established Contributor

Re: New Acc. VS AAOA lowered point penalties

@SouthJamaica The 5 cards in my sig and 1 Installment loan. That should be considered a "thick" file right ?

Chase Freedom Unlimited : $6000 | Discover It Chrome : $3500 | AmEx CS Investor : $6000 | Chase Sapphire Preferred : $5000 | Chase Amazon Prime : $2000 | AmEx Hilton Surpass : $1000 | AmEx Business Plus : $2000 | AmEx Platinum CS : POT $2800 | Tower Federal CU : $15,000 | Lowes Commercial Account : $1,000 | WF Bilt Mastercard : $4,000 | Shell Fleet Plus : $1,000
Total Credit Limit : $42500
Experian FICO 8 : 694
| Experian Vantage : 701 | TransUnion FICO 8 : 683 | TransUnion Vantage : 695 | Experian FICO 9 : 665
Starting Score: 512
Current Score: 693
Goal Score: 700+

Take the myFICO Fitness Challenge
Message 4 of 8
SouthJamaica
Mega Contributor

Re: New Acc. VS AAOA lowered point penalties


@Mdowning30 wrote:

@SouthJamaica The 5 cards in my sig and 1 Installment loan. That should be considered a "thick" file right ?


Not really thick. Just at the high end of thin.

 

Since your accounts are basically all new I don't think another new account is going to cost you much.

 

I don't think you should go for the CLI with Chase for several reasons: (1) sometimes they double pull (2) asking them for a CLI is not usually a winning game (3) a better way of getting a CLI from Chase is to use the card a lot and pay it down a lot, this sometimes gets you a SP auto CLI (4) I don't think Chase is a big fan of seeing a lot of new accounts


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 5 of 8
Mdowning30
Established Contributor

Re: New Acc. VS AAOA lowered point penalties

@SouthJamaica I appreciate your elaborate responses. I ended up calling Chase and to no surprise, they denied the request simply due to my limit recently increased only because I moved my limits around from my Amazon Prime card to the CFU. I would think I can still call Lending/recon to request a real limit increase because it doesn't look like they checked my credit.

Chase Freedom Unlimited : $6000 | Discover It Chrome : $3500 | AmEx CS Investor : $6000 | Chase Sapphire Preferred : $5000 | Chase Amazon Prime : $2000 | AmEx Hilton Surpass : $1000 | AmEx Business Plus : $2000 | AmEx Platinum CS : POT $2800 | Tower Federal CU : $15,000 | Lowes Commercial Account : $1,000 | WF Bilt Mastercard : $4,000 | Shell Fleet Plus : $1,000
Total Credit Limit : $42500
Experian FICO 8 : 694
| Experian Vantage : 701 | TransUnion FICO 8 : 683 | TransUnion Vantage : 695 | Experian FICO 9 : 665
Starting Score: 512
Current Score: 693
Goal Score: 700+

Take the myFICO Fitness Challenge
Message 6 of 8
bigseegar
Established Contributor

Re: New Acc. VS AAOA lowered point penalties


@Mdowning30 wrote:

@SouthJamaica The 5 cards in my sig and 1 Installment loan. That should be considered a "thick" file right ?


A "thick" file is one that is well aged (think years) and has a good mix of not only types of credit but good CL's as well. Take mine for example since my rebuild. It's 4 years old with an AAoA (due to new cards way earlier this year) of 2.2 years. I have one open installment loan (auto) with a local CU, one PIF auto loan showing and 4 other PIF installment loans showing. I have 36 credit card accounts showing with 29 of those open (I closed the other 7) with a total of $200,000 in CL's on those cards with a 4% UTL. My INQ's are at 6/12, 0/24, Zero Baddies and never a Late and all 3 Scores in the 735-740 range and I DON'T consider my file anywhere near a "Thick" one.

 

Yours with 5 cards all issued within the past 7 months with 4 of those issued in the past 3 months and a total CL on all cards of only $15,000 and Scores in the mid 600's wouldn't be anywhere near thick.

 

BUT thick is also a term we tend to use more than creditors do trust me. At this point another card isn't going to effect your AAoA much because with those 4 new cards since May, 2022 it's already pretty low. I'd be more concerned with the appreance of Credit Seeking behavior to creditors myself. That's part of the reason you're getting such low SL, you're going too fast. Also Chase doesn't like someone getting a lot of new cards in a short period after getting their cards and as documented on here has been known to close cards because of it.  Plus seems like I remember you mentioned in a thread with your original DP's when you first started posting that you income was $50K? If that's the case that's coming into play as well in those lower CL's. Personally if I were you I'd so exactly what I'm doing. Garden. I've been in it almost 6 months now with no intention of coming out yet.

Message 7 of 8
Mdowning30
Established Contributor

Re: New Acc. VS AAOA lowered point penalties

I had a secured Capital One that was opened May 2021, Experian/Credit Wise is showing my AAOA at 2 years, 2 months. Credit Karma is showing 2 months lol. My oldest account is 8 years old. Just some more DP's from me, im sure its better if i garden for a bit so i can improve my scores to "Good" range faster. I just have a couple large expenses i want to charge and would like more for utilization padding, my aggregate is currently 15%. Im paying down a balance transfer on my CFU with 0% and still have 0% on my Amex until this November.

Chase Freedom Unlimited : $6000 | Discover It Chrome : $3500 | AmEx CS Investor : $6000 | Chase Sapphire Preferred : $5000 | Chase Amazon Prime : $2000 | AmEx Hilton Surpass : $1000 | AmEx Business Plus : $2000 | AmEx Platinum CS : POT $2800 | Tower Federal CU : $15,000 | Lowes Commercial Account : $1,000 | WF Bilt Mastercard : $4,000 | Shell Fleet Plus : $1,000
Total Credit Limit : $42500
Experian FICO 8 : 694
| Experian Vantage : 701 | TransUnion FICO 8 : 683 | TransUnion Vantage : 695 | Experian FICO 9 : 665
Starting Score: 512
Current Score: 693
Goal Score: 700+

Take the myFICO Fitness Challenge
Message 8 of 8
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