Credit Limit Averaging?

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Walmart
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Credit Limit Averaging?

Postby Walmart » Sat Nov 28, 2015 5:57 pm

I know that AAoA provides an average age of all CC accounts. But do the credit limits of all open accounts get averaged (aged) by FICO too?

Here's why I ask. I have 3 Chase CC accounts and want to consolidate some of the CL from my oldest account (20 years old) to a 7-month old account (which has a current promotional balance transfer offer I wish to use). Would it make a difference if I consolidate some CL from my oldest account or my third account (2 years old)?

Thanks in advance for your help.


kdm31091
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Re: Credit Limit Averaging?

Postby kdm31091 » Sun Nov 29, 2015 7:47 am

Walmart wrote:I know that AAoA provides an average age of all CC accounts. But do the credit limits of all open accounts get averaged (aged) by FICO too?

Here's why I ask. I have 3 Chase CC accounts and want to consolidate some of the CL from my oldest account (20 years old) to a 7-month old account (which has a current promotional balance transfer offer I wish to use). Would it make a difference if I consolidate some CL from my oldest account or my third account (2 years old)?

Thanks in advance for your help.


Limits do not get averaged in terms of any kind of age. The account itself ages, and creditors can see your highest balance, limit etc to help them make future limit decisions. Moving limits around on an older vs a newer card makes no difference in terms of scoring.

augiedog
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Re: Credit Limit Averaging?

Postby augiedog » Sun Nov 29, 2015 4:58 pm

Chase will let you keep the card open if you leave a $500 line open.

If you don't plan on using the older card again, it could be better to use that line to improve your utilization on the newer card. You likely have other accounts open that date back that long too... It could have a slight to no impact.
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takeshi
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Re: Credit Limit Averaging?

Postby takeshi » Mon Nov 30, 2015 8:33 am

No. Limits are set based on what one's credit and income qualify for at time of consideration. FICO factors limits into revolving utilization.

Walmart wrote:I know that AAoA provides an average age of all CC accounts.

AAoA is an average of all credit accounts -- not just credit cards.

Walmart wrote:Here's why I ask. I have 3 Chase CC accounts and want to consolidate some of the CL from my oldest account (20 years old) to a 7-month old account (which has a current promotional balance transfer offer I wish to use). Would it make a difference if I consolidate some CL from my oldest account or my third account (2 years old)?

All depends on how individual revolving utilization is impacted by the reallocation. Age isn't relevant to revolving utilization and reallocating isn't relevant to AAoA.



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