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Valued Contributor
Posts: 1,484
Registered: ‎10-15-2011
0

Re: Score dropped


tylaw13 wrote:


haha you guessed it! i have alot of inquiries due to my car loan in jan. also 2 more from my chase freedom and cap1 cash rewards. i really just want to know when my score will go back to normal though because before the chase reported my AAoA was only 1.5 years and now its 11 months. so whatever anybody can tell me based on that would be great. Also thank all you guys for the responses this forum is great!


My advice, be a little more patient or open some small cards at stores and don't use them!  It sounds like you are at the beginning.  You need a long term strategy.  With all the inquiries you will need to probably a year before getting a new card.  You might be able to get a GECMB card or a WFNNB card.  (Walmarts, Marathon, etc.)  If you get a few more now and do nothing else for the next year you should be in a better position.  If you get no more right now you will still be in a good position in a year.  (Maybe 6 months if the car loan inquiries are the only inquiries.  I thought they were supposed to be grouped and not viewed as one.  This is also supposed to be the case for home loans.)  Keep your utilization down low if you want others to come to you and certainly for a month before you app again.  Keep paying on time.

 

How getting a few more now could be a benefit is a simple math formula and for some is a good strategy.  Number of accounts does play a factor in credit.  Having say 4 cards now and waiting will mean the age of them will grow.  For a truly long term strategy this can be beneficial.  The flipside is that if you simply wait you might get a higher limit card or better card as things age.  During this time you would be best getting the limits increased through payment history and insuring that you occassionally charge a large purchase on it.  You should not carry this purchase past one month.  Creditors will notice if you are always near your limit and for some lenders this can be OK for CLI's but for most it shows that you are not able to properly manage credit.  Some just want the interest revenue.  More often than not paying off or carrying a small balance on the account after it cycles is the best way to get a high limit.

 

One factor in giving limits is seeing what other limits are.  I have been given small limits because I had small limits.  I now have more than one card with a medium limit and it is much easier to get cards.  I just recently opened up 4 cards.  Two of them had realistically usable limits.  (Two were from GECMB - department store cards, so no big worry there.)  I only opened them to have a well rounded portfolio.  I am in it for the lowest mortgage rate!  I won't buy the house for a few years and only plan on adding 1 card.  I want a good rewards card with a good limit.  I knew my score would increase with the higher limit card.  I knew this from CK and their tool that predicts what will happen based on what factors affect your limit.  It said it would jump and jump it did. 

 

Their tool is flawed, for that matter any tool I have used so far is always flawed in the same way.  If I see how on time payments will affect my score it always says it will fall.  Yeah, that is definitely a flaw.  On time payments have always increased my score. 

 

Do some more reading and research and then set a plan.  That is what I did!  I have added cards, not because I need them, but because my report needed them!  Remember I am doing this with a long term goal!  I want the house.


I swear I am going right to the Garden...... Hopefully to stay there longer than a month this time......
Regular Contributor
Posts: 173
Registered: ‎06-28-2012
0

Re: Score dropped


bernhardtra wrote:

tylaw13 wrote:


haha you guessed it! i have alot of inquiries due to my car loan in jan. also 2 more from my chase freedom and cap1 cash rewards. i really just want to know when my score will go back to normal though because before the chase reported my AAoA was only 1.5 years and now its 11 months. so whatever anybody can tell me based on that would be great. Also thank all you guys for the responses this forum is great!


My advice, be a little more patient or open some small cards at stores and don't use them!  It sounds like you are at the beginning.  You need a long term strategy.  With all the inquiries you will need to probably a year before getting a new card.  You might be able to get a GECMB card or a WFNNB card.  (Walmarts, Marathon, etc.)  If you get a few more now and do nothing else for the next year you should be in a better position.  If you get no more right now you will still be in a good position in a year.  (Maybe 6 months if the car loan inquiries are the only inquiries.  I thought they were supposed to be grouped and not viewed as one.  This is also supposed to be the case for home loans.)  Keep your utilization down low if you want others to come to you and certainly for a month before you app again.  Keep paying on time.

 

How getting a few more now could be a benefit is a simple math formula and for some is a good strategy.  Number of accounts does play a factor in credit.  Having say 4 cards now and waiting will mean the age of them will grow.  For a truly long term strategy this can be beneficial.  The flipside is that if you simply wait you might get a higher limit card or better card as things age.  During this time you would be best getting the limits increased through payment history and insuring that you occassionally charge a large purchase on it.  You should not carry this purchase past one month.  Creditors will notice if you are always near your limit and for some lenders this can be OK for CLI's but for most it shows that you are not able to properly manage credit.  Some just want the interest revenue.  More often than not paying off or carrying a small balance on the account after it cycles is the best way to get a high limit.

 

One factor in giving limits is seeing what other limits are.  I have been given small limits because I had small limits.  I now have more than one card with a medium limit and it is much easier to get cards.  I just recently opened up 4 cards.  Two of them had realistically usable limits.  (Two were from GECMB - department store cards, so no big worry there.)  I only opened them to have a well rounded portfolio.  I am in it for the lowest mortgage rate!  I won't buy the house for a few years and only plan on adding 1 card.  I want a good rewards card with a good limit.  I knew my score would increase with the higher limit card.  I knew this from CK and their tool that predicts what will happen based on what factors affect your limit.  It said it would jump and jump it did. 

 

Their tool is flawed, for that matter any tool I have used so far is always flawed in the same way.  If I see how on time payments will affect my score it always says it will fall.  Yeah, that is definitely a flaw.  On time payments have always increased my score. 

 

Do some more reading and research and then set a plan.  That is what I did!  I have added cards, not because I need them, but because my report needed them!  Remember I am doing this with a long term goal!  I want the house.


i think right now my credit profile is ok. i really dont want to app for another card until i can get a AMEX revolver.

Right now i have the following :

 

Chase Freedom - 1000CL

Cap 1 Platinum - 1000CL 

Cap 1 Cash Rewards 500CL

Store Card - Daniels Jewelry 700CL

Auto Loan with WFDS balance - 11200 @16.99% (this is why i need to refi)

 

im definitely still a work in progress but i think im pretty responsible for my age (20) i currently make about 36k so my DTI is very low. My ultimate goal is also to buy a condo in about 2-3 years.

EQ FICO - 725 (9/11/13) TU FICO - 724 (6/27/13) EX FICO (6/30/13) 755 AMEX
Im my wallet - Cap1 Platinum MC(2000) Chase Freedom(1500) AMEX BCE (7000) Discover IT (8000) CSP (15000) Cal Coast CU (8000)
Valued Contributor
Posts: 1,484
Registered: ‎10-15-2011
0

Re: Score dropped

My guess is that you will have to wait until the year mark to get a better rate on the refi.  Utilization needs to be low then.


I swear I am going right to the Garden...... Hopefully to stay there longer than a month this time......
Regular Contributor
Posts: 173
Registered: ‎06-28-2012
0

Re: Score dropped


bernhardtra wrote:

My guess is that you will have to wait until the year mark to get a better rate on the refi.  Utilization needs to be low then.


yeah i was going to wait till Jan. 2013 i may wait longer to see where my scores are by then we shall see. and Util will be low by then im at like 60% percent at the moment due to making purchases for work and waiting for reimbursements.

EQ FICO - 725 (9/11/13) TU FICO - 724 (6/27/13) EX FICO (6/30/13) 755 AMEX
Im my wallet - Cap1 Platinum MC(2000) Chase Freedom(1500) AMEX BCE (7000) Discover IT (8000) CSP (15000) Cal Coast CU (8000)

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