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archimaybe

How to avoid AA from too many new accounts

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After lurking here for awhile and soaking up information, I managed to accomplish a pretty impressive credit score turnaround. (My gratitude to you all!) I currently have a pretty thin file, consisting almost entirely of installment (student) loans (oldest 11 years), plus a 6-month-old USAA card, all with perfect payment history. (Additionally, EX and EQ report an old revolver account that will fall off next month.) I brought my FICO scores to over 800 (a little lower for TU). I also consolidated some of my loans in order to lock in a low interest rate, which brought in two new tradelines (dropping me by about 20 points).

 

Wanting to take advantage of the old revolver that was about to fall off, I judged that it was finally time for my first AoR. I had a list of every card that I wanted, plus some fallbacks, and I set out to get them. I got a little carried away.

 

I am normally fairly conservative. I tend to read and research before I act, and these boards saved me from a LOT of mistakes. However, I didn't realize just how intoxicating an app spree can be. I don't like to gamble (I always thought slot machines are dumb), but now I get it. Apping for cards -- even cards that you don't really need -- is a rush. I knew the danger of opening too many tradelines at once, but I justified it by telling myself that statistically speaking, I wouldn't get all the cards I apped for anyway

(and in fact, about half of them were not instant approvals). This just fed the flames. I apped for nine (!) cards.

 

It took a week for the smoke to clear. I got callbacks from underwriters. No-one mentioned the inquiries. I got approved for every single card, including two Amices, a Barkleys, CSP, and other prime cards. The first few have already arrived in the mail.

 

This is a problem. After next month when my one 10-yo closed revolver drops off, my oldest revolver will be 6 months old. My revolving credit will increase from $7,000 to over $80,000, and the nine new cards will begin to report (one is already). This will probably upset the banks. Plus, my FICOs will take a beating. Including the installment loans, AAOA will drop from about 9 to a little over 5 years, but AAOOA (to the extent it matters) will be in the toilet. Based on my rough extrapolations from BW's charts, I expect to see the scores drop to around the 720s, possibly worse.

 

I had originally intended to take advantage of the fact that a close relative has an Amex card with an MSD in the early sixties (!), but the proverbial D*oor just closed on that idea literally the very day that the card arrived in the mail. The best laid plans of mice and men, etc. Now I am out of options.

 

What should I do? I know enough to show use on all cards but PIF before statement date on all but one (which will report with 2% util). However, I fear that won't be enough to stop AA, and I really want some of those cards and don't want to lose them. (I don't really care if I get hit with a CLD -- I can build that back later, but I don't want any cards just outright closed.) Should I preemptively close some of the ones that I don't really care that much about (looking at you, Discover)? Should I just wait out the storm and hope for the best?

 

Any advice is greatly appreciated.

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Going forward, Less new accounts.

 

:)

+1

 

I try to limit myself to no more than 4 new accounts in 6 months, but I'm one of the more conservative members here.

 

I did just add another 1992 Amex, but that doesn't count. :ph34r:

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I dont see why this is an issue... I have over 20 new accounts, took my revolving from 10k to over 300K in 6 months. AAOA was at a low, 2 years, its now 4.

 

No one has batted an eye at me yet.

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Look at it this way. You went on an app spree that most of the members here would be very very proud of. Congrats!

 

Btw, is that old revolver an Amie? It would be really sweet if it was.

 

 

Thin file: If you open one or ten, the AAOA is the about same (give-or-take). Don't worry so much about that right now. Maybe smaller sprees and concentrate on cli in the future?

Edited by ubercat

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I dont see why this is an issue... I have over 20 new accounts, took my revolving from 10k to over 300K in 6 months. AAOA was at a low, 2 years, its now 4.

 

No one has batted an eye at me yet.

But, the AAOA shortcut you used is very limited now. ;)

 

At least the apps were all grouped together, OP. You should plan another app spree in 6 months, and maybe another Amex in January.

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So far for me, never gotten AA from opening new accounts and that's given that I was foolish enough to go on an app spree earlier this year and opened several store cards and a Wells Fargo college card that I ended up closing several months later. Two new Amex accounts in August and a Visa Signature card with Chase and so far nothing bad has happened there either. Not planning on doing any more app sprees going into the future though and I already know what cards I'd want next, which aren't really that much anyway.

Edited by popamode72

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Don't be a weenie. This is nothing.

 

Keep applying til you get declined. Wait another 3 months and app for more cards. Then repeat in another 3 months. Keep adding until you're satisfied with your collection. Your stash can age at the same time.

 

My AAOA is in the toilet. For the past 2 years, it hasn't gotten above 3.5 yrs. But my EX and TU are near 800, EQ 750.

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For me, the bigger concern would be meeting the spend requirements for all the various bonuses. You did get some cards with nice sign-up bonuses, right? :grin:

 

As long as your income can support the cards, or you have other mysterious ways of getting to that spend requirement :grin: , as everyone else has said, don't worry about it.

 

Congrats!

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I dont see why this is an issue... I have over 20 new accounts, took my revolving from 10k to over 300K in 6 months. AAOA was at a low, 2 years, its now 4.

 

No one has batted an eye at me yet.

But, the AAOA shortcut you used is very limited now. ;)

 

At least the apps were all grouped together, OP. You should plan another app spree in 6 months, and maybe another Amex in January.

 

 

 

Tell me about it. Glad I got in on that bus before it left the terminal.

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Congrats, I would not worry about it. I went from 8K in credit in January to 140K as of yesterday.

 

I lost about 20 points.

 

Cheers!

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I had the same worries as OP. So far it's all been positive. Even Barclays gave me an auto CLI, and I've opened 5 accounts in the 6 months since I got in with them. Keep util low, pay on time, you will be golden

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I had the same worries as OP. So far it's all been positive. Even Barclays gave me an auto CLI, and I've opened 5 accounts in the 6 months since I got in with them. Keep util low, pay on time, you will be golden

 

Exactly. That's what I basically did too. Kept my utilization as low as possible overall, under 10% considering how much credit I have now and it's been smooth sailing.

 

Also wanna make it clear that I just started out with 1K of credit and worked with that for like 6 months and then got all the other accounts I have on my sig today. So glad that there are people who haven't had any problems with Barclays despite opening new accounts.

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Going forward, Less new accounts.

 

:)

+1

 

I try to limit myself to no more than 4 new accounts in 6 months, but I'm one of the more conservative members here.

 

I did just add another 1992 Amex, but that doesn't count. :ph34r:

 

 

Yeah. I've read most of your threads and your methodical, conservative approach appealed to me. I wanted to app immediately after I cleaned up my reports, but I forced myself to wait for my USAA to hit the six-month mark. Now I'm more than a little irritated at myself for getting carried away.

 

I've got all the cards I want for now, so I won't be apping again for a while. I just don't want to lose any of them from having been overly impulsive. :blush2:

 

Very jealous of that 1992 Amex. If I had only gotten started even a week earlier, my AAOA would be through the roof.

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can you repopen the old closed revolver? Is it something you could use?

 

I thought about that! I don't think I'm going to have much luck. The old revolver was a Cap One from when I was in school. It was a crap card ($500 limit plus AF) and I never used it. I did pull a few lates on it because of the AF (I was stupid and didn't open my statements because I wasn't using the card, and the lates have since dropped off). Once I found out about it, I paid the fee. Right after they got the AF out of me, they closed the account for "non-use." Pretty Flower Pot move on their part.

 

That being said, I'd come back to Capital One with roses and champagne if they'd reopen that card. I'd even pay 10 years worth of retroactive AFs if they'd do it. I'm really concerned about my AAOA and it would be worth it to me not to have to worry about AA on my beautiful new set of cards.

 

Do you think I have a shot at that? I don't have any records of the account (no old statements, account numbers, etc.) other than the credit reports. Is there a backdoor number that I could call?

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I'm really concerned about my AAOA

there's more important things

 

to be concerned about.

 

Do you think I have a shot at that?

no

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Going forward, Less new accounts.

 

:)

+1

 

I try to limit myself to no more than 4 new accounts in 6 months, but I'm one of the more conservative members here.

 

I did just add another 1992 Amex, but that doesn't count. :ph34r:

 

 

Yeah. I've read most of your threads and your methodical, conservative approach appealed to me. I wanted to app immediately after I cleaned up my reports, but I forced myself to wait for my USAA to hit the six-month mark. Now I'm more than a little irritated at myself for getting carried away.

 

I've got all the cards I want for now, so I won't be apping again for a while. I just don't want to lose any of them from having been overly impulsive. :blush2:

 

Very jealous of that 1992 Amex. If I had only gotten started even a week earlier, my AAOA would be through the roof.

 

 

You should have a good foundation now moving forward, and as they age, you'll have a solid AAOA. Just make sure you keep your utilization in check. That's FAR more important than AAOA.

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I've done MUCH worse. RELAX. :D

 

 

I've done MUCH worse. RELAX. :D

 

 

Yep relax

 

Thanks, guys. That does chill me out a bit. I was on the top of the world for a few days, but then I naturally started to worry. Once I learned that I couldn't attempt to take advantage of RD* anymore, a major part of my plan derailed and I was afraid that I had made a big mistake.

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Congrats, I would not worry about it. I went from 8K in credit in January to 140K as of yesterday.

 

I lost about 20 points.

 

Cheers!

 

That's awesome and encouraging. I hope I get off that lightly. My problem is that not only am I adding a ton of new tradelines, but my 10-year old closed revolver will also be falling off at the same time. Second oldest revolver is 6 mos.

 

Hopefully, my FICOs won't drop so much that I get AA'd.

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