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Regular Contributor
jeffg330
Posts: 172
Registered: ‎05-31-2012

can applying for a credit card raise a credit score?

I applied for and was approved for a Cap1 credit card with a $1,000 balance on 8/30.  Nine days later I got a score watch alert that my EQ score went up 19 points. This is before I even received the card.

The jump in my score can not be due to applying and receiveng credit, can it? I'm guessing its from some old derogs falling past the 4 years old but wanted to see if anyone might know.

 

ty in advance



Starting Score: EQ 609 EX 570 TU 656 March 2012 CH 7 BK 12/08
Current Score: EQ 691 EX 694 TU 713
Goal Score: all 3 700's.
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Frequent Contributor
jd5189
Posts: 470
Registered: ‎08-14-2012

Re: can applying for a credit card raise a credit score?

Probably the latter. It would take the account to appear for a change in score - the hardpull inquiry would actually lower your score. However, if your new CL decreases your utilization significantly, adding a new account could help your score.

In my wallet: Amex PRG & Zync, Amex BCE (19.2k), Chase Freedom (5k), PSECU Visa/PSL (20k)
Current Scores: Equifax: 738 (Fako) TransUnion: 721 (Fico) Experian: 717 (Fico)
Disclaimer: I am by no means a financial advisor. My posts are based on opinion, experience, and/or knowledge.
Regular Contributor
jeffg330
Posts: 172
Registered: ‎05-31-2012

Re: can applying for a credit card raise a credit score?

Ty jd. Just to be clear the new CL helping utilization would only help AFTER the cap1 reports right?


Starting Score: EQ 609 EX 570 TU 656 March 2012 CH 7 BK 12/08
Current Score: EQ 691 EX 694 TU 713
Goal Score: all 3 700's.
Quicksilver $5000 Discover IT $1500 Barclays NFL $1250 Walmart $1500 CL Applied Bank $300 (secured)

Take the FICO Fitness Challenge

In the Garden till 12/14
Moderator
Shogun
Posts: 12,883
Registered: ‎04-15-2011

Re: can applying for a credit card raise a credit score?

True, if it's not reporting yet, it's not helping.  Probably older stuff coming off.  When it does report, you'll take a AAoA hit but that'll heal fast and the new TL will start decreasing util.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

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Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Regular Contributor
Viper786
Posts: 190
Registered: ‎04-15-2011

Re: can applying for a credit card raise a credit score?

When my Chase Freedom started reporting, my score went up a little bit (don't remember exactly how much, it was a year ago) but that was because it significantly helped my util

EQ - 689 FICO - ScoreWatch (6/14) | TU - 701 FICO - Lender Pull (5/14) | EX - 708 - FICO Lender Pull (6/14)
Amazon Store Card - $4000 | Amex BCE - $2k | Barclaycard Ring - $2.5k | Capital One - $500 | Capital One - $3000 | Chase Freedom - $3.5k | Citi Diamond Preferred - $1000 | Discover It - $1500 | Macy's - $1500
Senior Contributor
youngandcreditwrthy
Posts: 6,154
Registered: ‎08-16-2012

Re: can applying for a credit card raise a credit score?

Agreed with all.... Ime, as long as you don't open more than a few cards at once, and significantly reducing util by credit line expansion.. Your score can shoot up!!!

I remem when I got my first $3,000 limit, my util dropped a lot and score when from 640-670'ish!!

:-)

'grats btw!
Marriott PR$25k | BCE $24.5K |BankAmericard Visa $25k| Wmt Discover $12.5k | BR Visa $12.5k | Amex Delta Gold $10k | Discover IT $10k | Paypal Extras MC $15k | Amazon Store $10k|Arrival $12.7k | Smile Gen $7.25k | Dillard's $5k| West Elm $4k| Express $3.05K | Mypoints.com Visa $4.5k | Freedom Visa $1k| Amex Surpass $1k
Regular Contributor
jeffg330
Posts: 172
Registered: ‎05-31-2012

Re: can applying for a credit card raise a credit score?

Thnx all. My new (unsecured) card is my only open CL that reports to EQ. I mistakenly got a secured CC in April that only reported to EX and TU, those scores went up 40 points each. Hoping to get only half of that with EQ. My AAOC was 8 years....


Starting Score: EQ 609 EX 570 TU 656 March 2012 CH 7 BK 12/08
Current Score: EQ 691 EX 694 TU 713
Goal Score: all 3 700's.
Quicksilver $5000 Discover IT $1500 Barclays NFL $1250 Walmart $1500 CL Applied Bank $300 (secured)

Take the FICO Fitness Challenge

In the Garden till 12/14
Moderator
Revelate
Posts: 8,322
Registered: ‎12-30-2011

Re: can applying for a credit card raise a credit score?


jeffg330 wrote:
Thnx all. My new (unsecured) card is my only open CL that reports to EQ. I mistakenly got a secured CC in April that only reported to EX and TU, those scores went up 40 points each. Hoping to get only half of that with EQ. My AAOC was 8 years....

If we're talking about maximizing FICO I strongly suspect two open credit cards helps vis a vis the anecdotal information people have shared on installment loans over time.... seems to hold on revolving tradelines too and logically I don't see why it'd work any differently in two similar places in the model... assuming the estimation is right in the first place.

 

If you're not on the path of auto or mortgage in the next year or so, personally I'd go open another that reports to all three bureaus.  Out of curiosity, what secured card only reports to EX/TU?  If you live west of the Mississippi that's probably mostly fine historically, but lender pulls are kinda wonky in the information age and no longer pull on regional lines in the national lender cases.

 

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 679, EQ 8 708, TU 711, EX 702* (07/14/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Regular Contributor
jeffg330
Posts: 172
Registered: ‎05-31-2012

Re: can applying for a credit card raise a credit score?

Revelate, the card that does not report to EQ is applied bank. What a bonehead move that was by me! And we will be in the mortgage market soon, but will open another CC shortly after that does report to all 3


Starting Score: EQ 609 EX 570 TU 656 March 2012 CH 7 BK 12/08
Current Score: EQ 691 EX 694 TU 713
Goal Score: all 3 700's.
Quicksilver $5000 Discover IT $1500 Barclays NFL $1250 Walmart $1500 CL Applied Bank $300 (secured)

Take the FICO Fitness Challenge

In the Garden till 12/14
Regular Contributor
MustangSaluki
Posts: 202
Registered: ‎07-07-2008

Re: can applying for a credit card raise a credit score?

Yes a hard inquiry can sometimes raise your score. It depends on which bucket you are for your range of scores. If there are no inquiries reporting, probably because you stopped seeking credit due to derogs, this snapshot could be different from your peers in the same score bucket who have been active in applying for credit over a one yeard period, and expected to be doing so. 

 

My score behaved the same way too over a 2 month period.


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