topic Re: can applying for a credit card raise a credit score? in Credit Cards

can applying for a credit card raise a credit score?

jeffg330 — Sun, 07 Oct 2012 00:37:31 GMT

I applied for and was approved for a Cap1 credit card with a $1,000 balance on 8/30. Nine days later I got a score watch alert that my EQ score went up 19 points. This is before I even received the card.

The jump in my score can not be due to applying and receiveng credit, can it? I'm guessing its from some old derogs falling past the 4 years old but wanted to see if anyone might know.

ty in advance

Re: can applying for a credit card raise a credit score?

jd5189 — Sun, 07 Oct 2012 01:40:42 GMT

Probably the latter. It would take the account to appear for a change in score - the hardpull inquiry would actually lower your score. However, if your new CL decreases your utilization significantly, adding a new account could help your score.

Re: can applying for a credit card raise a credit score?

jeffg330 — Sun, 07 Oct 2012 02:10:31 GMT

Ty jd. Just to be clear the new CL helping utilization would only help AFTER the cap1 reports right?

Re: can applying for a credit card raise a credit score?

Shogun — Sun, 07 Oct 2012 02:27:35 GMT

True, if it's not reporting yet, it's not helping. Probably older stuff coming off. When it does report, you'll take a AAoA hit but that'll heal fast and the new TL will start decreasing util.

Re: can applying for a credit card raise a credit score?

Viper786 — Sun, 07 Oct 2012 09:42:59 GMT

When my Chase Freedom started reporting, my score went up a little bit (don't remember exactly how much, it was a year ago) but that was because it significantly helped my util

Re: can applying for a credit card raise a credit score?

youngandcreditwrthy — Sun, 07 Oct 2012 15:29:43 GMT

Agreed with all.... Ime, as long as you don't open more than a few cards at once, and significantly reducing util by credit line expansion.. Your score can shoot up!!!

I remem when I got my first $3,000 limit, my util dropped a lot and score when from 640-670'ish!!

:-)

'grats btw!

Re: can applying for a credit card raise a credit score?

jeffg330 — Sun, 07 Oct 2012 15:41:04 GMT

Thnx all. My new (unsecured) card is my only open CL that reports to EQ. I mistakenly got a secured CC in April that only reported to EX and TU, those scores went up 40 points each. Hoping to get only half of that with EQ. My AAOC was 8 years....

Re: can applying for a credit card raise a credit score?

Revelate — Sun, 07 Oct 2012 17:14:46 GMT

jeffg330 wrote:
Thnx all. My new (unsecured) card is my only open CL that reports to EQ. I mistakenly got a secured CC in April that only reported to EX and TU, those scores went up 40 points each. Hoping to get only half of that with EQ. My AAOC was 8 years....

If we're talking about maximizing FICO I strongly suspect two open credit cards helps vis a vis the anecdotal information people have shared on installment loans over time.... seems to hold on revolving tradelines too and logically I don't see why it'd work any differently in two similar places in the model... assuming the estimation is right in the first place.

If you're not on the path of auto or mortgage in the next year or so, personally I'd go open another that reports to all three bureaus. Out of curiosity, what secured card only reports to EX/TU? If you live west of the Mississippi that's probably mostly fine historically, but lender pulls are kinda wonky in the information age and no longer pull on regional lines in the national lender cases.

Re: can applying for a credit card raise a credit score?

jeffg330 — Sun, 07 Oct 2012 19:16:12 GMT

Revelate, the card that does not report to EQ is applied bank. What a bonehead move that was by me! And we will be in the mortgage market soon, but will open another CC shortly after that does report to all 3

Re: can applying for a credit card raise a credit score?

MustangSaluki — Sun, 07 Oct 2012 19:56:10 GMT

Yes a hard inquiry can sometimes raise your score. It depends on which bucket you are for your range of scores. If there are no inquiries reporting, probably because you stopped seeking credit due to derogs, this snapshot could be different from your peers in the same score bucket who have been active in applying for credit over a one yeard period, and expected to be doing so.

My score behaved the same way too over a 2 month period.

Re: can applying for a credit card raise a credit score?

bobebob — Mon, 08 Oct 2012 02:19:22 GMT

MustangSaluki wrote:
Yes a hard inquiry can sometimes raise your score. It depends on which bucket you are for your range of scores. If there are no inquiries reporting, probably because you stopped seeking credit due to derogs, this snapshot could be different from your peers in the same score bucket who have been active in applying for credit over a one yeard period, and expected to be doing so.

My score behaved the same way too over a 2 month period.

I was at 1 INQ prior to apping for DCU's Visa Platinum Card.

The HP didn't change my SW FICO, it stayed the same at 806 before and after the HP hit.

I'm still waiting to see what the new trade line does to my score.

Re: can applying for a credit card raise a credit score?

Revelate — Mon, 08 Oct 2012 03:26:44 GMT

MustangSaluki wrote:
Yes a hard inquiry can sometimes raise your score. It depends on which bucket you are for your range of scores. If there are no inquiries reporting, probably because you stopped seeking credit due to derogs, this snapshot could be different from your peers in the same score bucket who have been active in applying for credit over a one yeard period, and expected to be doing so.

My score behaved the same way too over a 2 month period.

TBH an inquiry is a straight derogatory under FICO models; FAKO may be different. While at times it is zero damage initially (may factor later as other inquiries drop off, the number of inquiries and how they count against one's FICO isn't linear); however, it is never a positive.

An additional tradeline can at times be a straight positive (mix of credit function, and possibly some other more subtle details we don't know); however, an inquiry is never a positive and it's almost certain it was something else changing which admittedly is incredibly difficult to quantify.