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No negative effect with new accounts.

Valued Contributor

No negative effect with new accounts.

Back in October I apped and got approved for CSP and BCE. Back then my Utilization was 1% and my EQ FICO was 729. Since then my EQ FICO has been hover in the 680s-690s because I had a few balance reporting due to timing of statement cuts. Last week I paid down my balances so I had 7% overall utilization with 2 cards reporting; 1 reporting $39 bucks, and the other $1500. I got a ScoreWatch alert and my EQ FICO jumped to 734. My highest FICO ever! Can't wait to see what my FICO will be when I get the utilization lower.

 

So, what is causing the higher FICO score when I have a higher utilization VS. a lower FICO score when I have a lower utilization. Also have to take in account of new accounts. It doesn't look my any negative info dropped off my report.

AMEX: $25,000, CSR: $10,000, Chase Priority Club: $1,500, Freedom: $5000, Freedom Unlimited: $1000, Discover: $21,000, BoA $11,000, WF Cash Wise: $5000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 1 of 11
10 REPLIES
Valued Contributor

Re: No negative effect with new accounts.

3 open revolving accounts vs 2 and the increase in available credit ($ value, not percentage) are my two guesses. I would think FICO scoring understand the difference between $5,000 open credit and $50,000, while 3 open revolving accounts is rumored to be ideal. 

 

Congratulations by the way!

 

 

Edit: just saw the x2 next to CapOne - maybe the open revolving accounts doesn't factor in to this specific increase. 


In My Wallet: Amex BCP (12/12) $50,000, Chase Freedom (12/12) $16,500, Cap1 Quicksilver (6/12) $14,000, Barclaycard Rewards (5/13) $10,500, Citi Prestige (4/16) $30,000

Last App: June 27, 2015
Message 2 of 11
Valued Contributor

Re: No negative effect with new accounts.

Once you reach a 10k+ limit, you'll be all set! Higher limits beget higher limits. I think your AmEx BCE will be the catalyst. When are you going to request a CLI ... any day now, right?

Message 3 of 11
Valued Contributor

Re: No negative effect with new accounts.


kevinjjc wrote:

Once you reach a 10k+ limit, you'll be all set! Higher limits beget higher limits. I think your AmEx BCE will be the catalyst. When are you going to request a CLI ... any day now, right?


Yea, I'm going to request it any day now. Just waiting for them to SP my credit file. I will be happy with anything over $10k.

 

The thing that will keep me from 3x CLI is my stated income. I entered my reported income for my AMEX app and excluded income that I don't report which is an additional $20k, fearing FR. I'll be happy if they give me 2x CLI honestly.

AMEX: $25,000, CSR: $10,000, Chase Priority Club: $1,500, Freedom: $5000, Freedom Unlimited: $1000, Discover: $21,000, BoA $11,000, WF Cash Wise: $5000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 4 of 11
Senior Contributor

Re: No negative effect with new accounts.

1% isn't best for everyone.  Maybe 7% works better for you.

 

Did any of your baddies ages past a year, two years, etc.?


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Message 5 of 11
Valued Contributor

Re: No negative effect with new accounts.


Walt_K wrote:

1% isn't best for everyone.  Maybe 7% works better for you.

 

Did any of your baddies ages past a year, two years, etc.?


They were all older than 3 years. But I had 9 30 and 60 lates on an auto loan in 2009

AMEX: $25,000, CSR: $10,000, Chase Priority Club: $1,500, Freedom: $5000, Freedom Unlimited: $1000, Discover: $21,000, BoA $11,000, WF Cash Wise: $5000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 6 of 11
Valued Contributor

Re: No negative effect with new accounts.


SnackTrader wrote:

3 open revolving accounts vs 2 and the increase in available credit ($ value, not percentage) are my two guesses. I would think FICO scoring understand the difference between $5,000 open credit and $50,000, while 3 open revolving accounts is rumored to be ideal. 

 

Congratulations by the way!

 

 

Edit: just saw the x2 next to CapOne - maybe the open revolving accounts doesn't factor in to this specific increase. 


I'm now at 6.9% utilization with only 1 card reporting a balance. My EQ FICO score has increased to 737 from 734.

 

Does 6.9% round to 7% of 6% in scoring of FICO?

AMEX: $25,000, CSR: $10,000, Chase Priority Club: $1,500, Freedom: $5000, Freedom Unlimited: $1000, Discover: $21,000, BoA $11,000, WF Cash Wise: $5000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 7 of 11
Valued Member

Re: No negative effect with new accounts.

If I remember right you had 3 cards reporting balances then.

Reporting only one card with a balance can make quite a difference.

I also think you will get more points when you get it down to 1-2%.

Message 8 of 11
Senior Contributor

Re: No negative effect with new accounts.


SwiftTone wrote:

SnackTrader wrote:

3 open revolving accounts vs 2 and the increase in available credit ($ value, not percentage) are my two guesses. I would think FICO scoring understand the difference between $5,000 open credit and $50,000, while 3 open revolving accounts is rumored to be ideal. 

 

Congratulations by the way!

 

 

Edit: just saw the x2 next to CapOne - maybe the open revolving accounts doesn't factor in to this specific increase. 


I'm now at 6.9% utilization with only 1 card reporting a balance. My EQ FICO score has increased to 737 from 734.

 

Does 6.9% round to 7% of 6% in scoring of FICO?


Utilization always rounds up.  So even 6.1% would be scored as 7%.  This is why when I relay advice about the general rule for what people should let report for optimal scoring, I think it is more clear to state 9% or less.  You often see it stated as less than 10%, which leads to confusion if people do not realize that 9.1% will be scored as 10%.


Starting Score: ~500 (12/01/2008)
Current Score: EQ 681 (04/05/13); TU 98 728 (01/06/12), TU 08? 760 (provided by Barclay 1/2/14), TU 04 728 (lender pull 01/12/12); EX 742 (lender pull 01/12/12)
Goal Score: 720


Take the FICO Fitness Challenge
Message 9 of 11
Valued Contributor

Re: No negative effect with new accounts.


bradpitt wrote:

If I remember right you had 3 cards reporting balances then.

Reporting only one card with a balance can make quite a difference.

I also think you will get more points when you get it down to 1-2%.


How different its would be ???


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 13k| Amex: NSPL|Dis: 9.4k|Cap: 5.5k|CAP: 2k|CSP: 13.4k| Pen:4.5k

Message 10 of 11