Effects of Credit Application on a Younger Person
Since starting the whole “miles and points” game, I had to pay attention to my score and that of my husband's. The official stance is that credit scores usually go down about 5 points per application. In our case, it was more like 10 to 12 points. Most likely, it was due to my average age of accounts going down with each new card. This is one of several factors affecting a person's credit rating.
Let's say, you had just one card over 10 years. When you add another credit card, your average age is slashed in half. The more cards you add, the lower your AAoA (average age of accounts) will be. Mine is down to just 4 years, even though my credit history is 15 years old (I am in my thirties). When my mother-in-law applied for 2 credit cards in a row, her credit score did not go down at all. Why? Because she is close to 70, and her AAoA is barely affected by added cards.
When you start playing this game, it is important to go slow, especially if you are a young or young(ish) person, like myself. Perhaps, start with just one card and monitor your score changes by signing up for free credit services, referenced in the earlier chapter. This is a very lucrative hobby, but you have to be very careful!