Credit Card Center Advertiser Disclosure†
12-30-2013 02:23 PM
Hi there, new to the forum. This is a great resource. Thanks to everyone who contributes.
My FICO is currently at 725. My report shows $11K in revolving credit on 2 open accounts, of which I'm using 70% (I know, read on). I have $22000 in student loan debt. My average age of accounts is 6 years, I have perfect payment history and 1 inquiry.
I've had several significant credit events over the past 30-60 days that have not yet appeared on my report and I'm curious as to: a) when those events will effect my FICO; and b) to what extent (positivle or negatively)? I've tried to provide as much context as possible above and below.
1. In November I closed on a refinance of a mortgage that was previously in the name of my in-laws and wife. It's now in my name and my wife's name. Approx $180K. First payment to be made 1/1/14.
2. In mid-December I paid off approx. $7000 of the credit card debt.
3. Yesterday I was approved for the Chase Freedom card at a $1K limit. It's in the mail.
I'm expecting all of this to be a net benefit to my score, but I'm not sure about the mortgage and the additional credit card. I'm looking at possibly buying a new car soon and I'm wondering what kind of shape I'll be in come February/March.
Thanks in advance.
12-30-2013 03:26 PM
I'm not sure about the mortgage, but I expect that the greatly reduced utilization will dominate the HP + TL for the Freedom, giving you a gain.
Another angle here might be to revisit the DTI issue, and ask where you're at with monthly payments relative to your income.
12-30-2013 05:38 PM
Initally you will take a drop on your credit report because of the inquiries and the new account as it affect the AAoA. The good news is that you pay off your 70% of the credit card which should ease you with that drop. I would avoid apping for anything for atleast a year to let the inquiries lose affect to your FICO score and let it grow. Your credit should be much better come that time.
12-31-2013 06:58 AM
Thanks. My DTI is currently at about 25%. Would lowering that have significant effect?
I expect that the significant drop in utilization will dominate all the other changes and will be an overall good sized plus.
DTI doesn't affect credit scores at all.
12-31-2013 08:43 AM
I mentioned DTI not because it affects scores, but because it affects your ability to get approved for any sort of CC or other loan.
I believe that there starts to be concern around 35-40.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.† 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.
* For complete information, see the terms and conditions on the credit card issuer’s website. Once you click apply for this card, you will be directed to the issuer’s website where you may review the terms and conditions of the card before applying. While myFICO always strives to present the most accurate information, we show a summary to help you choose a product, not the full legal terms - and before applying you should understand the full terms of products as stated by the issuer itself.
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.