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Chris3k2
Posts: 170
Registered: ‎03-25-2013
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Increasing score with new Credit Card?

I need to know whether opening up another credit card will boost my score. I currently have a cap 1 secured cc and it first posted this month. It brought my scores up by about 13 points I believe. I also have 4 unpaid chargeoffs that are 3 or more years old. So basically right now I only have 1 revolving trade line. Does anybody know whether I will get a boost from getting approved for another card? My AoAA is at least 4 years on one bureau and at least 5 on the other 2. Oldest account is 8+ years. Have 2-3 collections depending on which bureau is looked at. Any help would be greatly appreciated.

Starting Score: 03/29/2013 540 EQ 05/01/2013 614 TU 05/30/2013 606 EX (Lender Pull)
Current Score: 07/27/2013 639 EQ 07/27/2013 651 TU98 07/27/2013 650 TU04 07/27/2013 617 EX V2 07/27/2013 639 EX 08
Goal Score: 660 EQ 660 TU 660 EX


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_jb_
Posts: 321
Registered: ‎01-16-2013
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Re: Increasing score with new Credit Card?

[ Edited ]

Chris3k2 wrote:
I need to know whether opening up another credit card will boost my score. I currently have a cap 1 secured cc and it first posted this month. It brought my scores up by about 13 points I believe. I also have 4 unpaid chargeoffs that are 3 or more years old. So basically right now I only have 1 revolving trade line. Does anybody know whether I will get a boost from getting approved for another card? My AoAA is at least 4 years on one bureau and at least 5 on the other 2. Oldest account is 8+ years. Have 2-3 collections depending on which bureau is looked at. Any help would be greatly appreciated.

I don't think it will boost your score in the short** run, but I think opening 1-2 more cards and then sitting on them for a while will def. help in the long run.

 

You didn't ask, but working on getting the derogs removed will boost your score much more.

 

 

 

Eta: mistake


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dddewdrop
Posts: 1,060
Registered: ‎02-06-2013
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Re: Increasing score with new Credit Card?

   Hi. I would recommend getting more tradelines on your report for the medium to long run. One reason is that your Average Age of accounts over time if you have a few cards will build and getting just one more card will not make it go down that much if you have a couple. Also, mortgage lenders like to see a few healthy tradelines. If you ever consider starting a small business, lenders for that would like to see a few tradelines as well.

0/10001100/13001346/16001699/2000Prepaid ,,Recent scores:FICO EX 632,EQ 635,TU 632...Link to my Rebuild Log
Regular Contributor
Chris3k2
Posts: 170
Registered: ‎03-25-2013
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Re: Increasing score with new Credit Card?

Well I had 7 collections when I started. I've managed to get everything off except for 2 of them. The chargeoffs are a little high and I'm trying to get pre-approved for a mortgage loan so that's why I haven't tried anything with those. I meet there minimum requirements but the underwriter denied me for one particular collection or account. I'm trying to figure out the best way to boost my score to at least a 620. Just trying to see if another CC would help boost it like it did when the Cap 1 first reported.


Starting Score: 03/29/2013 540 EQ 05/01/2013 614 TU 05/30/2013 606 EX (Lender Pull)
Current Score: 07/27/2013 639 EQ 07/27/2013 651 TU98 07/27/2013 650 TU04 07/27/2013 617 EX V2 07/27/2013 639 EX 08
Goal Score: 660 EQ 660 TU 660 EX


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myjourney
Posts: 26,659
Registered: ‎02-07-2013
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Re: Increasing score with new Credit Card?

What is your time line for home loan?

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/13


Regular Contributor
Chris3k2
Posts: 170
Registered: ‎03-25-2013
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Re: Increasing score with new Credit Card?

I honestly am trying to get into one pretty soon especially with how low the interest rates are but I understand that that might not be an option and i am willing to wait at least 6 months to a year if that's what it takes and also bring my scores up within that time. And even If I did get approved now, I think i'd end up having to wait a couple months anyway for the home to be built as most the neighborhoods me and my fiance have been looking at are almost completed at least with the first phase. Most of them have a 2nd phase they are starting on.


Starting Score: 03/29/2013 540 EQ 05/01/2013 614 TU 05/30/2013 606 EX (Lender Pull)
Current Score: 07/27/2013 639 EQ 07/27/2013 651 TU98 07/27/2013 650 TU04 07/27/2013 617 EX V2 07/27/2013 639 EX 08
Goal Score: 660 EQ 660 TU 660 EX


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myjourney
Posts: 26,659
Registered: ‎02-07-2013
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Re: Increasing score with new Credit Card?


Chris3k2 wrote:

I honestly am trying to get into one pretty soon especially with how low the interest rates are but I understand that that might not be an option and i am willing to wait at least 6 months to a year if that's what it takes and also bring my scores up within that time. And even If I did get approved now, I think i'd end up having to wait a couple months anyway for the home to be built as most the neighborhoods me and my fiance have been looking at are almost completed at least with the first phase. Most of them have a 2nd phase they are starting on.


Here's why I asked 

Within 6 months of the loan process you should not apply for any new credit (zip)

It will drop your scores thus making it even more unlikely of an approval 

 

If you leave things as is and pay off any balances scores will continue to climb along with working on any baddies on CR thus increasing the chance of scores climbing

If you apply for new credit on average scores will not recover for about 4-5 month YMMV

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/13


Regular Contributor
Chris3k2
Posts: 170
Registered: ‎03-25-2013
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Re: Increasing score with new Credit Card?

ok. so i understand what you're saying about the new credit and that's what I was worried about. If opening up another one would hurt or benefit me. I thought the cap 1 would have hurt me at first but it raised my score so that's why i was confused and wanting to know if it would happen again with another cc tradeline. The other thing that concerns me is the re-bucketing. I only have 2 collections showing on any of the bureaus i belive. One is actually supposed to be removed but equifax has been taking forever so I would be down to just 1 and that last one is a medical bill and i'm pretty positive I will be able to get that removed. I know re-bucketing is good in the long run but i've also seen people post about it really hurting their score at first. I'm worried the same might happen if I remove that one last collection. any thoughts on the rebucketing situation?


Starting Score: 03/29/2013 540 EQ 05/01/2013 614 TU 05/30/2013 606 EX (Lender Pull)
Current Score: 07/27/2013 639 EQ 07/27/2013 651 TU98 07/27/2013 650 TU04 07/27/2013 617 EX V2 07/27/2013 639 EX 08
Goal Score: 660 EQ 660 TU 660 EX


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myjourney
Posts: 26,659
Registered: ‎02-07-2013
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Re: Increasing score with new Credit Card?


Chris3k2 wrote:

ok. so i understand what you're saying about the new credit and that's what I was worried about. If opening up another one would hurt or benefit me. I thought the cap 1 would have hurt me at first but it raised my score so that's why i was confused and wanting to know if it would happen again with another cc tradeline. The other thing that concerns me is the re-bucketing. I only have 2 collections showing on any of the bureaus i belive. One is actually supposed to be removed but equifax has been taking forever so I would be down to just 1 and that last one is a medical bill and i'm pretty positive I will be able to get that removed. I know re-bucketing is good in the long run but i've also seen people post about it really hurting their score at first. I'm worried the same might happen if I remove that one last collection. any thoughts on the rebucketing situation?


I have never seen it hurt usually it helps YMMV 

Which is why the LO has it done

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/13



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