topic Re: Will Her Score Recover? in Understanding FICO® Scoring

Will Her Score Recover?

Johnny_Favorite — Tue, 09 Oct 2012 17:45:10 GMT

Friend of mine had a 730 FAKO across the bureaus. 1 credit card, 5 years old, $5000 limit. Never late.

I advised her that she could probably use some more credit and just build it up slowly. She went on an app spree and got a Chase Freedom (4000), Citi Diamond (1200), Discover More (2000), Target Red Card (500).

She does not plan on buying a house or car soon. But maybe in 2 years or so. Will her scores recover by then and how big of a hit can she expect with her Credit Line going way up but her AAoA going way down?

Re: Will Her Score Recover?

creditnocash — Tue, 09 Oct 2012 17:51:05 GMT

Johnny_Favorite wrote:
Friend of mine had a 730 FAKO across the bureaus. 1 credit card, 5 years old, $5000 limit. Never late.

I advised her that she could probably use some more credit and just build it up slowly. She went on an app spree and got a Chase Freedom (4000), Citi Diamond (1200), Discover More (2000), Target Red Card (500).

She does not plan on buying a house or car soon. But maybe in 2 years or so. Will her scores recover by then and how big of a hit can she expect with her Credit Line going way up but her AAoA going way down?

well... going from only 1 account to 5 is a big drop. thats saying 60+1+1+1+1=65/5 13 so her aaoa dropped from 5 years to 1 year. That's only if she has no more tl as in student loans or car leases/loans.

the inq will stop effecting score in a year and will fall off in 2 years.

as long as she does the usual charges and pays. never missing payments and not apping for stuff she wants only what she needs her score should grow as her cards age.

she should be in the step of what we call here gardening.

Re: Will Her Score Recover?

jamie123 — Tue, 09 Oct 2012 17:54:52 GMT

She should be in really good shape even after just 1 year.

For most people you really don't see much of a score ding for the first 3 credit cards. Of course she has just added 4 new cards so it might be a bit of a score drop in the short term.

After 6 months she should almost be back to where she started from. After 1 year all the damage from the inquiries will be gone and her scores will be higher. (As long as she exhibits good credit behavior.)

She also will have a much stronger credit profile.

Re: Will Her Score Recover?

Shogun — Tue, 09 Oct 2012 18:02:30 GMT

Absolutely. Within a year those accounts will be adding to her scores.

Re: Will Her Score Recover?

cashnocredit — Tue, 09 Oct 2012 18:37:32 GMT

Shogun wrote:
Absolutely. Within a year those accounts will be adding to her scores.

Yep, probably in less time than that. If you only have one CC adding a few more generally helps within months and may not even hurt much at the start.