Question regarding NEW Credit Cards

[ttonnka3]

Hello,

I just got approved for 2 more credit cards the total credit limit is 4500. My question is how will this affect my score?? will it help?? will it bring it down?? will it affect it for how long?? I dont plan on using them right now maybe for smaill purchases is all but nothing dramatic....

Thank You

[-NewGuy-]

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@ttonnka3 wrote:

Hello,

I just got approved for 2 more credit cards the total credit limit is 4500. My question is how will this affect my score?? will it help?? will it bring it down?? will it affect it for how long?? I dont plan on using them right now maybe for smaill purchases is all but nothing dramatic....

Thank You

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New accounts can affect your score in a few different ways. Possible negatives are the decrease in AAoA from your new cards, as well as the score hit from the inquiry. The positive is the effect on your UTIL. If you had high UTIL then the additional CL will lower your overall UTIL, which in turn could raise your score.

[takeshi74]

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@ttonnka3 wrote:

My question is how will this affect my score?? will it help?? will it bring it down??

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Impossible to give details.  For one thing it's not just the 2 new accounts that matter but your credit prior to adding the cards as well.  The generalized info is mentioned above and the usual factors apply:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

Note that utilization (Amounts Owed) is 30%.  However, AAoA (Length of Credit History) and New Credit add up to another 25%.

You can do the math before and after to see how your utilization (balances/limits) changes due to adding the two new accounts.

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@ttonnka3 wrote:

will it affect it for how long??

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The impact of inquiries falls off relatively quickly.  They don't factor into scoring after a year and completely fall off after two.  Payment History, Utilization and AAoA, however, will continue to affect scoring as long as the accounts report.