Currently, 757 equifax and 745 transunion. Oldest account is student loans 16 years and never missed a payment. Credit score has dropped a little (I think) because I have allowed three inquiries on my record because up until now I have had no (zero) revolving accounts (credit cards). I just recieved my first in october. My question is: will using my new account have a good or bad effect on my score. I don't need to use it, i got it because I didn't have a card. My concern is that my score will drop and I now know I will be looking for an auto loan in three months. Stupid auotmobiles.
Welcome to the forum. By this being your first revolving account, you should see an increase in your FICO scores. Pay the balance in full monthly. Three months is enough time to recover from any decreases in scores you may have received.
It is essential in credit scoring to demonstrate a good revolving credit history, so with no prior revolving debt, the new card was definately a smart credit move.
Addition of the new card will result in the addition of a new inq to your CR, but that will hit for less than 10 pts,.
But it improves your credit mix, and puts a CL for calculation of revolving %util,.
My advice is simple, If you are applying for new credit in the near future, use your new card once a month, and then PIF, Show zero balance when reported to the CRA.
...So am I to understand, I should use it and pay in full? I would like to maximize my score by end of december-beginning of Jan. There are always great deals in cars at end of year.
I've have three new cards that I have been PIF. Last cycle one reported a small balance and my score went up a few points. suprised me.