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Impact of Opening 3 New Accounts Within Next 3 Months

Jeff15

By Jeff15,
in Credit Forum

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The last post in this topic was posted 1655 days ago. 

 

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Jeff15

Jeff15

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I got some help previously about opening new accounts, but I was curious more about the impact and possible ramifications. I only have 1 credit card in my name, and it only reports on Experian and TransUnion. The rest are AU cards. I have 8 accounts on Experian and TransUnion and AAoA of about 21 years. My Equifax report is a bit thinner. I pulled CCT, and I'm at 777 EX, 782 TU, and 789 EQ. I have been thinking about about a PenFed credit card and an AMEX revolver. I also may be cosigning a small student loan. I'm not certain on this yet, but it's a possibility. I know that this will cause a score hit of some sort (drop in AA), but I'm not sure how severe. I was thinking about forgoing PenFed and just doing AMEX, but I can't make up my mind. Can anyone give me some insight? I would like to avoid permanently damaging my report in some way. I don't know if 2 cards in such a short time is too much. I appreciate any help.

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Jeff15

Jeff15

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Thanks for the response. I'm actually not so much worried about the inquiries. I'm more concerned about my general credit, specifically the impact to AAoA and possible adverse action on my existing credit card account. My guess is that I'm probably overreacting, but I just want to make sure I'm not doing anything dumb.

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MarvBear

MarvBear

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Ah,  sorry, I missed the part about your average age of account being 21 years.   Do the math, you know how many accounts you have total and how long they have been active on your files, so what would 3 new account lower your average age of account to?

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shifter

shifter

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Also, your scores are high enough that you should be more concerned about curating a credit card portfolio that suits your needs then worrying about a few score points one way or the other.

 

One credit card is not enough for anyone. What happens if it gets compromised and you're out of the country and can't get a new card and now you have no backup?

 

The general rule of thumb is at least one Visa, MC, Amex, and another one of each as a backup. So that's at least six cards minimum and then up from there depending on specific spending habits and best ways to maximize rewards. 

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kdm31091

kdm31091

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1 hour ago, shifter said:

The general rule of thumb is at least one Visa, MC, Amex, and another one of each as a backup.

Meh. Domestically I think Visa and MC are one and the same. There really is not much reason that you need one of each, except for very few cases like Costco. Visa works fine instead of Mastercard and vice versa 99% of the time.

 

Yes, you should have multiple different cards (3-6 I think is a good range for the average person) but I just don't think network is that important.

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hegemony

hegemony

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8 minutes ago, kdm31091 said:

Meh. Domestically I think Visa and MC are one and the same. There really is not much reason that you need one of each, except for very few cases like Costco. Visa works fine instead of Mastercard and vice versa 99% of the time.

 

Yes, you should have multiple different cards (3-6 I think is a good range for the average person) but I just don't think network is that important.

IMHO at least one MC network, one Visa network, one Amex network, and one Union Pay network is a nice mix. Just don't settle for subprime Discovery.

Edited by hegemony
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shifter

shifter

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6 hours ago, kdm31091 said:

Meh. Domestically I think Visa and MC are one and the same. There really is not much reason that you need one of each, except for very few cases like Costco. Visa works fine instead of Mastercard and vice versa 99% of the time.

 

Yes, you should have multiple different cards (3-6 I think is a good range for the average person) but I just don't think network is that important.

Meh. Whatever floats your boat, but there are absolutely some places that only accept V, MC, or Amex and not any others. If I find myself there I don't want to be out in the cold because my only X card is down right now. Therefore it's only prudent to have one of each and a backup. 

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kdm31091

kdm31091

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13 hours ago, shifter said:

Meh. Whatever floats your boat, but there are absolutely some places that only accept V, MC, or Amex and not any others. If I find myself there I don't want to be out in the cold because my only X card is down right now. Therefore it's only prudent to have one of each and a backup. 

Maybe it's a regional thing. Here in DE I have not seen any place that took Visa but not MC, or vice versa. If they took one they took both. With the exception of Costco which is well known.

 

I think my point is more that network should not be a primary consideration when opening a card, but really a much lower priority. In other words don't get a card that is otherwise useless to you just because of network. Not saying you are recommending that but I've seen people do it that way.

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hdporter

hdporter

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On 5/21/2020 at 12:34 PM, MarvBear said:

It is a common theme that new people here are overly concerned about inquiries impacting their credit scores.  Inquiries really only matter for a six-month period, and after one year they have absolutely no impact on a FICO score.

 

Worry like that and your hair will turn white like mine.😀

 

You have hair left??  Damn, I'm jealous!

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