04-06-2013 11:05 PM
I just recently received an offer for an American Express Blue Sky CC that came with a $400 travel credit after spending $500 in 90 days. Im young I figured why not, I had been wanting a new CC for awhile. The last time I had checked my scores they were in the 640 range, and I thought this would help my credit. This offer intrigued me, and I became very interested in my credit score. Enter MyFICO. I hadn't checked my score in a couple years and MyFICO is reporting my EQ at 755(is this possible?). Had I known this I might have not applied, will the new CC bring my score down?
Bank Americard Cash Rewards $7/5000
Amex Blue Sky $80/2000
Best Buy Charge $0/2000
No other forms of credit besides CC's
Never a late payment
No other negatives
Utilization averages 15% at time of reporting
Current AAoA with out Blue Sky = 3 years
Oldest account = 4 years, 8 months
I am currently 25 and trying to grow my credit as responsibly as possible.
Thanks for reading, any advice and/or information would be greatly appreciated.
04-07-2013 09:18 PM
755 is a very good score. Congrats.
Yes, getting a new CC or any TL will mess with the AAoA and possibly bring it down a bit. But, you should quickly recover.
A good credit mix would be revolving and installment. Again, there are those with scores over 800 that have no CC so everyone is different.
Your utilization is 15%, you might want to bring it down to under 10%.
04-08-2013 04:40 AM
For a newbie to credit you are doing very good. While adding one account will temporarily drop your score it recovers extremely fast, probably six months at the outmost. Focus on paying your bills and your Scores will continue to rise. Paying on time accounts for about 1/3 of your score. Therefore, the longer you pay on time, the more solid you score will become and then it will begin to rise as well. (You could compare it to bowling, early in a league, your average goes up and down dramatically, later it moves less and less). Enjoy your journey!
04-08-2013 10:43 AM
I got some good news today. My score shot up to 770! I got a CLI on BankAmericard from 1000 to 5000 about a week ago, and I think that just got reported. Hopefully this boost will help offset some of the negative impacts when the new AMEX account gets reported. Thank you all for the information! If anyone else has anything they can add to boost a score, I am a noob with open ears, or eyes for that matter. I like the idea of an installment, I just have no use at this point in my life. I'm also going to lower utilization below 5% in the future, and alternate a $0 balance between Americard and AMEX month to month.