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Valued Member
irish_guy
Posts: 41
Registered: ‎10-23-2009
0

New Card

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. :smileyhappy:
Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008
0

Re: New Card


irish_guy wrote:
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. :smileyhappy:

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.

Mega Contributor
RobertEG
Posts: 17,456
Registered: ‎03-19-2007
0

Re: New Card

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.

 

Super Contributor
DI
Posts: 5,767
Registered: ‎01-28-2008
0

Re: New Card

'After the first month, I think the OP should let a balance report and keep it at 1%.  It helped my scores to show some balances accross mulitple cards, but total all kept under 1%. 
Valued Member
irish_guy
Posts: 41
Registered: ‎10-23-2009
0

Re: New Card

OP?   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.
Valued Contributor
Uborrow-Upay
Posts: 2,710
Registered: ‎10-16-2008
0

Re: New Card

OP = Original Poster (that's you, irish_guy!)
Regular Contributor
Credit-Wise
Posts: 240
Registered: ‎08-08-2009
0

Re: New Card

 

 

OP :smileyvery-happy:     OP = ORIGINAL PERSON irish_guy    :smileyvery-happy:   love it ... good one

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Community Leader
Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007
0

Re: New Card


irish_guy wrote:

...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.

Yes, don't carry a balance on it.

With only one card, we don't know if you would do better to have it report $0 or to have it report a minimal figure. If you'd like to be our guinea pig and try it both ways, and let us know any score change, we'd be happy for you to do so! :smileywink: We do know that most of us with multiple open CC's lose points if all report $0, but we don't know how that applies to those with just one card.

At any rate, to control the amount of the balance that reports, you generally make your payment right before the statement posts. Most --not all --cards report the balance that's on the statement date. If you do allow 1% or something to report, be sure to go back and pay it off after it shows on the statement, or you'll get a late charge. Many of us have gotten a good scare that way. :smileytongue:
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Valued Member
outofthewoods
Posts: 48
Registered: ‎04-07-2009
0

Re: New Card

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.

Valued Member
irish_guy
Posts: 41
Registered: ‎10-23-2009
0

Re: New Card

Those few points may end up costing me a couple grand in three months. I'll stay!!!

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