Amount of New Credit...

[Anonymous]

On my report, it reads that the amount of credit I've applied for is not good. The last credit card i applied for was a secured credit card through my credit union and a secured load from the same credit union about 9 months ago.  I've never been late on these. Also im paying my auto loan for 2 years and my school loan. Never been later on these either.

So do i need to apply for new credit raise my score? If yes, what card can I apply for with a score of 664 EQ, 620 EX, and 550 TU.

Thanks

Greg

[Anonymous]

35% of your scores are from hx    30% from CC UTIL and payments. How old is your oldest account?

and what ia your UTIL?

Message Edited by HappyDays on 02-15-2008 07:42 PM

[Anonymous]

What account do you mean by oldest? New open accounts? Collection Accounts? Late Payment Accounts? If you mean New accounts, its from my credit union i opened 9 months ago. That's my oldest account i have..

I also have accounts in collections, derogs, but these are falling of my report in about 7 more months.

Im just wondering if i need to apply for new credit since..

Thanks for your help..

Greg

[Anonymous]

Anyone?

[haulingthescoreup]

The new credit ding generally results from inquiries. Are you looking at your EQ report, your TU report, or your EX report? And is it a FICO report?

Generally, if you only have one inq within the last 12 months on that particular credit bureau, you won't get this ding, but if you have 2, you might. (If you're being spanked for other things, like lates or high util, this might not show up.)

[andyaycw]

Shadow, I think you might be misunderstanding what it means when it says that the amount of credit you have recently applied for is "not good". It is not telling you that you need to apply for More cards, it's telling you that you Shouldn't apply for more accounts. It is "not good" because you have applied for credit recently, and generally people who apply for more credit are more risky borrowers. So what Myfico is trying to tell you by "not good" is that your score is being lowered as a result of you applying for credit too recently, NOT that you need to apply for more credit.

Think about it from the bank's perspective. Say they have two potential candidates who are both looking for loans, Bill and Bob. If Bill has an established history of 5 years and hasn't opened any new credit account in the past year, then he looks pretty stable. On the other hand, if Bob only has a 2 year credit history and has opened 10 new accounts in the past year, he looks much more risky because he has a lot of new credit - it could be a sign of desperation.

New credit inquiries and new credit accounts opened recently will lower your score in the short term. However, as long as you make timely payments and show that you can manage that new credit responsibly and let the accounts age, your score will rise in the long run.