Reply
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Some credit questions


keryan wrote:

I'm new to all this, but wouldn't opening/having more cards with such a short credit history have an adverse effect on one's CR?



Adding any card will ding your FICO. However, you are being dinged extra for not having a good mix of credit. Adding that first will improve your FICO as the gain for the improvedmix outweighs the new account ding. Folks who add their first typically see some nice gains. Same goes with adding a second, and I'd argue a third. You'll see some increases with each provided your util remains in check. IME, I saw gains on the first 3 and lost on the rest. I added everything at one, but I'm now a proponent of adding them over time and spaced out. That'll improve your odds of higher limits when aiming for unsecured on #2 onwards. I recommend adding the first via a secured CC, then waiting 6-12 months to add another and another months after that.

Valued Contributor
Swapmeet
Posts: 1,569
Registered: ‎11-10-2012
0

Re: Some credit questions

[ Edited ]

llecs wrote:

keryan wrote:

I'm new to all this, but wouldn't opening/having more cards with such a short credit history have an adverse effect on one's CR?



Adding any card will ding your FICO. However, you are being dinged extra for not having a good mix of credit. Adding that first will improve your FICO as the gain for the improvedmix outweighs the new account ding. Folks who add their first typically see some nice gains. Same goes with adding a second, and I'd argue a third. You'll see some increases with each provided your util remains in check. IME, I saw gains on the first 3 and lost on the rest. I added everything at one, but I'm now a proponent of adding them over time and spaced out. That'll improve your odds of higher limits when aiming for unsecured on #2 onwards. I recommend adding the first via a secured CC, then waiting 6-12 months to add another and another months after that.


Well said. One thought that keeps nagging at me goes something like this: If one does not have a FICO score because of lack of credit history, isn't this a much more serious adverse credit file than opening a card or two? Also, the GE cards that I referenced above will not ding your score for applying. They will, however, affect your AAOA -- which could cost you a few points; but those points will most likely be regained by having more available credit. Right now you do not have a credit history or FICO score, so step number one is to start establishing both. llecs' advice is solid (especially since it is pretty much inline with mine :smileyhappy:. You have to establish a score before you can hurt it.

 



My Wallet:
WalMart: ||15k|| USAA Platinum MC: ||26k|| BCE: ||9k|| Chase Freedom Siggy: ||10k|| Discover it: ||6.5k|| SG Visa: ||11k||
USAA World MC: ||23k|| US Bank Cash+ Siggy: ||7.5k|| Citi TYP World MC: ||12k|| Barclays Arrival World MC: ||13k||Citi Double Cash World MC ||25k||Sallie Mae World MC ||18.8k||Fico Scores (3 Fico Monitoring): EQ 751,TU 749, EX 743. Last app: 9-12-14 Sallie

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+
}