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New Credit question

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Established Member

New Credit question

From what I understand the more new credit you apply for it can drop your score. Now doesnt new credit account for 10% of your total credit score?

Now my new credit portion of the pie of my credit is already an F, Its terrible. Yet I keep getting prapproved for cards. Since my new credit is already at an F, should I get these cards? as I only have 1 Visa credit card ($200 credit) and a few Store Cards.. I heard you can build your credit a lot faster with a CC opposed to a Store Card..

 

I want a Discovery card, another Visa, a Cheverlot gas CC..

 

So basically what if I applied to 3-4 credit cards at once? what effect would that have even if my new credit portion is already super low with that 10% being at 10% full if you will? and how fast can I build it back up if I use ALL my cards each month and pay them off at the end of every month? Thank you

And I dont use CC for big stuff.. Just for gas, maybe small amount of groceries and cell phone bill, netflix and cable bill sometimes.. I wont have trouble paying all of them off


Starting Score: 677
Current Score: 704
Goal Score: 725


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2 REPLIES
Valued Contributor

Re: New Credit question

The new credit F is mostly based on the inquiries you have on your reports.

 

You could apply for 1 or 2 more cards, but you already probably have enough to build credit if you really wanted to.  After about a year with no apps, you will start getting better grades for new credit.

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Message 2 of 3
Super Contributor

Re: New Credit question


DaveSignal wrote:

The new credit F is mostly based on the inquiries you have on your reports.

 

You could apply for 1 or 2 more cards, but you already probably have enough to build credit if you really wanted to.  After about a year with no apps, you will start getting better grades for new credit.


This! ^^

 

Too many inquiries is never a good thing either though, lenders will see that as you're desperate for credit which usually means you're in a bad financial situation. Even if you do end up getting accepted for what you applied for (which your chances of lower with each new inquiry), your terms on the account may not be as good as they would have been had you gardened and let some of those inquiries age off. 

 

Another factor is, with each new account, you lower your aaoa even more, so keep that in mind. 

 

Good Luck! 

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