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Questions revolving around Card Accounts

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youngandcreditwrthy
Senior Contributor

Re: Questions revolving around Card Accounts

Congrats!
A bit of info:
Consequently, a super high score such as yours(yes, Im jealous!!!:-p) will be dinged far more when a new account /inquiry reports!
So be careful!
And congrats once again!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| BOA Better Bal $17.5k |Wmt Discover $12.5k | BR Visa $17.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Smile Gen $7.25k | Dillard's $10k | West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Message 11 of 15
Ponti
New Member

Re: Questions revolving around Card Accounts

Crash - Sure there is a point. You never know when an unexpected life event can wack you and drop your scores, so higher scores over 760 can act as a buffer. 

 

Lexie, thanks for clearing that up.

 

Young, that's a interesting point for me. If somebody has shown to be credit worthy enough to gain such scores, why can little actions move you so hard. At that point, isn't penalizing you with big number movements kinda silly because you are credit worthy?


Starting Score: EQ 806 | TU 808 | EX 769
Current Score: EQ 806 | TU 808 | EX 769
Goal Score: EQ 825 | TU 825 | EX 800


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Message 12 of 15
Crashem
Valued Contributor

Re: Questions revolving around Card Accounts


@Ponti wrote:

Crash - Sure there is a point. You never know when an unexpected life event can wack you and drop your scores, so higher scores over 760 can act as a buffer. 

 

Lexie, thanks for clearing that up.

 

Young, that's a interesting point for me. If somebody has shown to be credit worthy enough to gain such scores, why can little actions move you so hard. At that point, isn't penalizing you with big number movements kinda silly because you are credit worthy?


Ponti,

 

Hard to say, but basically there is no barrier created against unexpected life event from dropping your score below 760.  Remember credit scores are snapshots of your credit.  There isn't any real historical buildup that happens similar to savings in a bank.  There are factors that measure historical things like payment history or AAoA etc, but in the end, it is a snapshot.

 

So basically the factors that really help you get to upper scores are stuff you can't really do anything to actively help such as AAoA.

 

As for the unexpected things that will bring down your score, such as lack of funds preventing payment or high utilization, or late payment because of life emergency, the hit on your score will probably be too high to prevent it from tumbling too far.

 

The only thing I can think of to help is to get more credit today while things are good.  If bad thing happened, you could use the credit cards while maintaining lower utilization because of the high limits.  However, getting a bunch of new cards will harm your credit immediately from the inquiries, lowered AAoA, and new account hit.  So I guess trade off of lower scores today vs. potentially keeping your score high in case of financial emergency.

 

 

               LIMITS IN CARD DESCRIPTIONS
Message 13 of 15
Ponti
New Member

Re: Questions revolving around Card Accounts

Thanks crash, I think that's valuable advice. All in balance I suppose. 

 

Called BoA to get more info on the card than the banker could tell me. My card with them is a dimpy thing that won't ever raise much so going for an increased CL with it seems like it may be counter productive. But to wait a little while I think and just use it to pay for something simple on auto pay each month would be wiser, and then later on take out a third card with much better stuff. Don't want to do it to quick, don't want lots of hard pulls dragging me down. The only negative on my report is not quite enough accounts, so bit by bit building rather than all at once is probably the way to go, unless I'm missing something obvious. 


Starting Score: EQ 806 | TU 808 | EX 769
Current Score: EQ 806 | TU 808 | EX 769
Goal Score: EQ 825 | TU 825 | EX 800


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Message 14 of 15
takeshi74
Senior Contributor

Re: Questions revolving around Card Accounts


@Ponti wrote:

 

For the BoA card... gotcha. Don't think I want them to close the account due to inactivity. If I keep at the 10% rule, I've $50 to play with, with $900 to play with on my WF card and so I shouldn't ever go about $950 combined. I can work with this. Thanks for the tips. 


You can work with as much as you want.  Just keep the reported utilization down (i.e. pay before statement close if needed).

Message 15 of 15
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