Thursday, May 7, 2009

Open Lots Of Credit Cards? Get an Amex Card

For those that churn cards, one of the things that can affect your score, is that by opening new cards, you are shortening the average age of your credit history.

One way to counter that, is to open a Amex card. Opening a new Amex card can actually help your score, because, in my experience, and from what I've read, Amex seems to report your new card as if it was opened the year when your oldest Amex card was opened! So, if you opened a Amex card 10 years ago, and lately you have opened lots of cards, then opening another Amex card can actually raise your score, as now it will count as if you have another 10 year old card! This obviously only applies to personal cards, as business cards don't get reported.

I wouldn't recommend applying for a bunch of Amex cards right now though, as Amex seems to be very trigger happy these days. And I wouldn't do anything that might make Amex close my account.

Related post: Credit Reports and Scores Explained

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