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Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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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
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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 Smiley Happy. You have to establish a score before you can hurt it.

 



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