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04-03-2009 09:40 PM
04-03-2009 10:00 PM
as Whirled noted they will potentially hurt from the first one. there may be no freebies on hard pulls that appear on your reports depending on overall report info.
if 6 or more in a year, the likelihood of default has been shown to be extremely high. a reason why some lenders will deny or AA for too many inqs. at a certain point.
04-03-2009 11:55 PM
04-04-2009 07:57 AM
Whoa, things have changed in the 2 or 3 years since I looked into the credit card world. I hope/think I can get away with one w/out sustaining too much damage then.
I had not applied for credit for 4 years.
When I obtained a new credit card my score went up a little.
You had asked a question about how many cards are "allowed" in one year before affecting score? You would have gotten a very different answer if you stated that you were app free for over three years and you only wanted to add one new tradeline
. The way you phrased your question was as though you wanted to apply fore as many new lines of credit as possible without lowering your FICO scores. That is what is known as risky behavior. Apping for one new tradeline after three years is considered responsible behavior.
Nothing has changed much with the scores FICO generates as a result of particular actions taken by the consumer. What has changed since you looked into the credit world, is that "risky behavior" and falling credit scores, trigger a lot more Adverse Action by existing creditors.
04-04-2009 08:22 AM
04-04-2009 10:29 AM - edited 04-04-2009 10:31 AM
In my experience, there is no ding (or very, very minimal) for one inq per CRA per 12 months. So that is specifically answering the "cc apps" question.
If you get a new account from the inq, it generally drops your score for a while. The higher your score and/or the longer your history, the more it's likely to drop. Some folks with very little revolving (CC) credit never see a drop --they hold even or rise right away.
I agree with the limited consequences of one app / year.
I don't agree that a longer history or a higher score
will be more likely to cause a subsequent score to drop
as a result of adding a new tradeline.
Could you explain the reasoning behind that belief?
Just because a score is higher doesn't mean
that there is any higher probability that adding
a tradeline would be treated negatively.
I understand the vulnerability of high scores to minor negative actions. The fact is that not all new tradeline additions are treated as a negative for FICO scoring purposes.
If anything I believe there would be a higher probability that a given action might not be considered a negative at all (with a higher scoring file). A high scoring file is more likely to not have any recent apps, inqs, or recently opened tradelines. A higher scoring file will be more likely to have a higher average age. A FICO score generated based on such a file (with no recent inqs, and apps) would be more likely to be higher (not lower) as a result of adding only one new account.
True a higher FICO score might suffer a greater point drop for a single inquiry, if there was going to be any net score drop in the first place. I just don't see how the assumption can be made that lower scoring files will do better than higher scoring files when a new tardeline is opened.
04-04-2009 01:11 PM
04-04-2009 05:46 PM
04-04-2009 05:49 PM