How long before I can expect to see boost from new card?

[Anonymous]

I am trying to decide whether to apply for a new revolving cc. It seems my "lack of revolving credit" is affecting my score. I only need 10 points to get up to the 720 I need for my home refi, but I need it by September. I have tried everything else to boost it, like keeping balances low or 0, PIF before reporting etc. I have seen a couple of point boost recently as some inquiries dropped off and a few more will drop off in June so maybe I should sit tight and hope that does it? If I apply now (May) am I likely to see a boost from the increased revolving credit in the next few months or is the impact of the new credit and hard pull likely to outweigh it for many months? My AAoA is 7 years. I have 15+ various accounts, but most are inactive and the three CC's that aren't don't report as revolving. Advice?

[mauve]

Do you have ANY revolving credit reporting?  If not, you should see a score boost for the first one you open and then smaller boosts for each additional up to a point.  To maximize your score (which is 30% based on your utilization), you would want to have at least 3 revolving credit lines and to have a small (less than 9% of the CL) balance reporting on only one of them.  You're evaluated on both your overall utilization of revolving credit and on individual utilization. 

Also, if you have no revolving credit reporting at all, the new credit and the inquiry dings will be insignificant compared to the score boost from having something to score in the revolving credit category. 

[Anonymous]

junipero,

have you recently pulled your score and report from this site?

If so, can you share what is showing up on your report for "What's Hurting Your FICO Score?" and "What's Helping Your FICO Score?".  Also what effect does opening a new account show on your simulator?

[Anonymous]

Thanks. That is helpful. I have only a small $1k cl Macy's Amex Card that reports as revolving and a Home Depot Card with a $1500cl that I am an AU on that reports as revolving. Other than that, the two cards with large cl's: Chase Visa $15k cl but reports as "open account" and Citi MC $45k cl reports as "flex".....

[Anonymous]

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@Anonymous wrote:

Thanks. That is helpful. I have only a small $1k cl Macy's Amex Card that reports as revolving and a Home Depot Card with a $1500cl that I am an AU on that reports as revolving. Other than that, the two cards with large cl's: Chase Visa $15k cl but reports as "open account" and Citi MC $45k cl reports as "flex".....

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Hmmmm.......I'm doubtful that you will see a FICO increase with an additional credit card. 

Have you pulled a report here?  Where are you seeing the comment "lack of revolving credit?"

[Anonymous]

Hmmm. Well, I just got a Score Power alert and the good news is my score is now up to 722! Yay!

The lack of enough revolving credit note is gone from the negative factors on my most recent full report (April) and it now says:

• Hurting your score
• 1. Serious delinquency
• 2. Seeking credit
• 3. Short account history

• Helping your score
• 1. Bills paid on time recently
• 2. Low credit usage
• 3. Recent credit card use

So....I am thinking I should leave well enough alone since this is the score I need. The last couple of times I saw all three FICOs was when I was refinancing last year and Equifax was always the lowest one, so I will assume / hope that the others have gone up commensurately or at least remained the same which would keep me in the 720+ zone I need. I am thinking the "serious delinquency" which was a one time snafu four years ago with Verizon will continue to age out and the remaining inquiries will be gone when they reach their one year mark in June so this will hopefully put me safely above the 720 mark. Does this seem like the best strategy?

[Anonymous]

Congrats on the 722 FICO!!!

FICO is seeing your recent credit card use - so you're doing fine with cc's.  Your inquiries will show for two years, but affect your FICO for one year.

And given that you're being dinged for seeking credit and short account history, opening a new cc is not likely to be one of your best options.

So, Yes, IMO - it is very wise to leave well enough alone!

Congrats again!