Reply
Moderator Emeritus
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
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
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.