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Fico Question

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Anonymous
Not applicable

Fico Question

So I started credit in December.  I know that new applications can ding your score. My current are 704,705,697.  One of mine droped 45 points when my Cap one card showed up. Its not showing up on the 700's ones yet and my BOA is not showing up yet at all. So much further can they drop? Ik my age is very new almost 7 months now. I know that inquires hurt your score for a little bit. So how long will it take for them to recover back in the 700's? I dont know when BOA will report or when CAP one will report on the others.

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Anonymous
Not applicable

Re: Fico Question

Where are you getting your scores from?

 

Inquiries impact your FICO scores for 1 year and new accounts for no more than 1 year as well.  Typically, most report within 6 months or so recovering most of the points lost from the addition of new accounts.  There are lots of factors at play though that need to be considered.  The biggest for you is that your file is extremely thin, so it's going to be very volatile to changes.  Something that may cause someone with 20 years of credit history 5 points could cost you 20 points, for example.  The good news is that as volatile as it is to score drops, your gains should come quickly as well in the beginning whenever you aren't applying for new credit.  Make sure you keep your utilization low on your cards, recommended at less than 9% and that you never are late on any payments and you'll be in a good place.

Message 2 of 3
PrinceCorwin
Regular Contributor

Re: Fico Question


@Anonymous wrote:

Where are you getting your scores from?

 

Inquiries impact your FICO scores for 1 year and new accounts for no more than 1 year as well.  Typically, most report within 6 months or so recovering most of the points lost from the addition of new accounts.  There are lots of factors at play though that need to be considered.  The biggest for you is that your file is extremely thin, so it's going to be very volatile to changes.  Something that may cause someone with 20 years of credit history 5 points could cost you 20 points, for example.  The good news is that as volatile as it is to score drops, your gains should come quickly as well in the beginning whenever you aren't applying for new credit.  Make sure you keep your utilization low on your cards, recommended at less than 9% and that you never are late on any payments and you'll be in a good place.


@+1. I can attest to the truth to the above advice. My credit rebuild started less than a year ago with scores @Anonymous. For the next 6 to 8 months, my scores were very volatile, moving up and down quite a bit, but always eventually up. Now they are hovering around 700 (would be greater but I took advantage of the 0% intro APR on several cards with large purchaces and my utilization is currently around 23-25%. When they get paid down with the next 4-5 months, I'm hoping to see scores over 750

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