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Lil_Me
Posts: 62
Registered: ‎06-30-2011

By getting a new account will your fico scores go up?

I have a question, if you get approved for a credit and do not use it will that open credit limit help your fico scores go up?

BK7 - 2/2011
Since:
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Juan123
Posts: 496
Registered: ‎04-16-2011

Re: By getting a new account will your fico scores go up?

[ Edited ]

Depends. If your util is high and you get a new account with a high limit it'll drop your util enough that it'll make your score go up equalizing the hit from AAoA decrease and the INQ.

 

on the other hand... if you have low or no util your score will go down from the AAoA decrease and INQ.

 

Use the Fico Simulator.


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Lil_Me
Posts: 62
Registered: ‎06-30-2011

Re: By getting a new account will your fico scores go up?

Ok by util you mean my other credit cards balances, correct? I have three credit cards that are maxed out and 3 store cards that are at %50 mark. I was just approved for two new cards with a low limit.

BK7 - 2/2011
Since:
Kay Jeweler's $400/ Jared's $400/ HSBC Visa $300/ Credit One Visa $300/ Firestone $1000/ Von Maur Card $500/ Walmart Card (AU) $5600/ Fingerhut $500/ Discover It $200
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Wolf3
Posts: 3,198
Registered: ‎01-24-2010

Re: By getting a new account will your fico scores go up?

Utilization will be a bit better,   Have you done the before and after calculation.

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FrugalRican
Posts: 2,876
Registered: ‎02-02-2012

Re: By getting a new account will your fico scores go up?


Lil_Me wrote:

Ok by util you mean my other credit cards balances, correct? I have three credit cards that are maxed out and 3 store cards that are at %50 mark. I was just approved for two new cards with a low limit.



Yes, if you had 3 cards with 100 bucks each, and they are maxed out... you are sitting at 300/300.

If you just got 2 more cards with 100 each, then your total utilization would sit at 300/500.

Your utilization just went from 100% to 60%, but you still are using 100% of 3 credit cards.

 

What you are originally asking is quite a broad question and can be different depending on what your report and mix look like.

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mAndrew1980
Posts: 707
Registered: ‎08-26-2011

Re: By getting a new account will your fico scores go up?

When I opened my second and third cc's in November, I took a 40 point hit on TU. It was my darkest bottom of rebuilding. Now three months later it's back up to where it was originally. In three more months it should be well above where it ever has been.

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My Primary Financial Goal is to put down my utl%.



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bichonmom
Posts: 3,306
Registered: ‎05-05-2011

Re: By getting a new account will your fico scores go up?


Lil_Me wrote:

I have a question, if you get approved for a credit and do not use it will that open credit limit help your fico scores go up?


It's not unusual to have a FICO drop when you add a new acct. It depends on your AAoA and util. So, getting a new CC and not using it does NOT guarantee a FICO increase at all, and may in fact, have the opposite result.

 

As others have said, the CL will help your overall util, which may or may not affect your score -- depending on what your util is before the new CC.

 

I don't think I'd add a card *just* for that. I would want a card that serves a purpose -- like rewards, 0% financing, etc. Then any help with your util is just a bonus. :smileyhappy:

 

 

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Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

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webhopper
Posts: 7,230
Registered: ‎09-16-2011

Re: By getting a new account will your fico scores go up?

I would go easy in the cc department, you aren't doing good rebuilding if you're getting cards just to max them out.

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Lil_Me
Posts: 62
Registered: ‎06-30-2011

Re: By getting a new account will your fico scores go up?

Thank you FrugalRican, you answered my question!

BK7 - 2/2011
Since:
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