General Credit Topics

[SwiftTone]

Checked my Credit Karma this morning, and to my surprise saw a 33 points increase. Read into it a little bit and saw that my student loan of $4500 started reporting. Can I assume that my FICO score has also increased due to the student loan? I just want to know if its an increase or decrease in the FICO score. I know that CK is unreliable for scores, although my CK score and my TU FICO were only a few points apart.

[GregB]

You might as well call a fortune teller and ask them. Or look at your horoscope. CK score is worthless. CK Vantage is almost worthless.

Look at the info, ignore the score.

[llecs]

You can only guess. If I had to guess, if the SL is listed with a recent open date, and assuming you don't have other new accounts skewing the results, my vote would be that FICO dropped.   ETA...and that drop is temporary...less than a year.

[SwiftTone]

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llecs wrote:

You can only guess. If I had to guess, if the SL is listed with a recent open date, and assuming you don't have other new accounts skewing the results, my vote would be that FICO dropped.   ETA...and that drop is temporary...less than a year.

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Hmmm...I do have a new Discover account that hasn't reported yet...yikes, makes me nervous because I want to apply for Chase Sapphire Preferred in October or so

[Lasardo]

Credit karma reported me 31 points higher! I removed several Deliquent accounts, opened 3 credit cards so now I have credit., had someone add me as an authorized user. I understand credit Kama is a lot lower because Fico states I am 45 points higher. I would think with the discover card you will be ok as long as your utilization is under 10% and you pay on time ..good luck and congratulations!

[SwiftTone]

Would my student loan be viewed as "new credit" even though if it's deferred for 3 years.

[llecs]

It depends on the open date. If the date is new, then the TL is new. If the OC failed to report for a number of years and the loan was opened 3+ years ago, then it isn't new. Now if you get a new loan to consolidate the old, or if it was sold, the date is still new because it is a new creditor.

[SwiftTone]

It's new new. I opened it Dec 2011, and it just started reporting.

How is this going to hurt my approval odds on CCs. Could they use the "too many new accounts" card on me?

[HoldingOntoHope]

A credit card company can use any excuse they want if their initial intent is to deny you credit. Remember that most applications are simply run through a computer program that spits out denials or approvals. The only company that I am aware of that still does human reviews is First National Bank of Omaha (FNBO).

If you apply for a product and are denied for any reason you always have the option of phoning in and asking for reconsideration by a human. The success of that process depends on the company and the reasons for denial. Examples abound on the forums for example of Barclays - Easy process, GE and Capital One - not so much success.