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New Member
Posts: 11
Registered: ‎05-21-2012
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How Does CareCredit Affect Credit Score

Hello, I have found myself needing about $5,000 in dental work done. I might do a portion of it in Costa Rica but the extractions will cost about $1,800 and I will be doing those in the US.

 

My question is, if I apply for CareCredit, how does it affect my credit score. I would guess that it would hurt my utilization ratio right?

 

But, what if I applied for it and then immediately paid it all off. Would that HELP my utilization ratio? And, wouldn't it continue to do so in the future as long as the account is open if that is the case?

 

Is it treated the same as a credit card on my credit report?

 

Thanks for your help!

Super Contributor
Posts: 9,663
Registered: ‎01-28-2010
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Re: How Does CareCredit Affect Credit Score

[ Edited ]

doller_prod wrote:

Hello, I have found myself needing about $5,000 in dental work done. I might do a portion of it in Costa Rica but the extractions will cost about $1,800 and I will be doing those in the US.

 

My question is, if I apply for CareCredit, how does it affect my credit score. I would guess that it would hurt my utilization ratio right?

 

But, what if I applied for it and then immediately paid it all off. Would that HELP my utilization ratio? And, wouldn't it continue to do so in the future as long as the account is open if that is the case?

 

Is it treated the same as a credit card on my credit report?

 

Thanks for your help!



CareCredit shows on your reports as a revolving account ~ so it would work in the same way as adding a new credit card.    The increased CL can help your overall utilization, but if you max out the card then utilization might take a hit.     Also when opening a new account you'll incur an inquiry and once the account shows on your reports your AAoA will decrease.  

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Frequent Contributor
Posts: 470
Registered: ‎02-07-2011
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Re: How Does CareCredit Affect Credit Score

+1 to pizzadude's response. I used CareCredit in a similar situation and would recommend it, if only because once you pay it off there's no temptation to use it on something silly, like a TV.

"Credit is purely a cash flow tool. Thinking of credit as extra money you didn't have before makes it an EXPENSIVE cash flow tool."
Frequent Contributor
Posts: 495
Registered: ‎06-04-2011
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Re: How Does CareCredit Affect Credit Score

+ 1 to cassembler. Since it does show as a revolving account you may take a hit while the balance is high; however if you pay it off as planned your score will recover. Plus you can't use it on just anything so there is no temptation to run the debt back up.
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New Member
Posts: 11
Registered: ‎05-21-2012
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Re: How Does CareCredit Affect Credit Score

Thanks everyone!

 

I'm new to rebuilding my credit and I'm not familiar to some of these terms. I hadn't heard of the AAoA yet. Like I said, i'm just starting out and the only card I have is the Secured Capital One card. And I've only had it for about 6-7 months. If I understand the concept of AAoA from what I just read it seems to be important to have a long average age on your accounts and opening new ones lowers that. So since I've only had the card 6-7 months it's not like I'd be loosing much there.

 

I only have my TU score and it's 658 so I think they may approve me..

 

I was kind of looking as this as a quick way to boost my Utliization Ratio and pay it off right away if possible so it shows sooner than later.

New Contributor
Posts: 73
Registered: ‎05-21-2012
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Re: How Does CareCredit Affect Credit Score

I have a care credit card and got it when my score was in the high 500's. Got it for dental work as well .

Starting Score: Jan 2011: 517; March 2012: 620
Current Score: Ex 681 FairIsaac V2; TU 690 Classic04; Eq 642 Beacon5.0-All lender pull 8/13/12
Goal Score: 700


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New Member
Posts: 11
Registered: ‎05-21-2012
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Re: How Does CareCredit Affect Credit Score

lol I just got declined by CareCredit.

 

It says this:

We regret that we are unable to approve your request at this time. The most significant reason(s) the application was declined are listed below:

- too few accounts currently paid as agreed
- delinquency, adverse public record or collection
- number of accounts with recent activity
- average age of accounts

 

 

 

 

What really concerns me is that I purchased my fico from here at myfico.com last month and it was 658. But it says this in the denial letter:

Your credit score: 588
Date: 06/12/2012
Scores range from a low of 300 to a high of 850
Key factors that adversely affected your credit score:
- serious delinquency and public record or collection filed
- too few accounts rated current
- number of accounts delinquent
- length of revolving account history
- number of inquiries on credit report

 

 

So, it dropped from a TU658 to a TU588?

 

Like I said, I only have that measly Capital One secured card and I pay that total balance off like every week and only use it for a purchase or two.

 

I did apply for a couple unsecured cards as I was suggested to do on some other boards and was declined by all. I applied for the Capital One Cash Rewards and the Chase cash back one. Could those inquiries have impacted my score that much?

 

I hope that the score on the denial letter is just inaccurate.

 

 

 

 

 

Moderator Emeritus
Posts: 14,652
Registered: ‎12-30-2011
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Re: How Does CareCredit Affect Credit Score

[ Edited ]

Are you certain they pulled TU?  It probably said in the letter, I'm assuming it was TU here for the rest of my response, if it was some other bureau all bets are off:

 

The version sold on myFico is TU98, and a blank (or perhaps mortgage) industry option.  Standard pull in other words, FICO '98 version.

 

The Care Credit application could've used either TU04, or TU08, and also a credit-enhanced pull.  That could lead to a non-trivial variation in score; also, your inquiries may or may not have hurt you, it depends on whether they pulled the same bureau that GE did.  It's also possible (again look at your letter) and see if the FICO trademark is on there or not... might've been an internal score though the range certainly matches a standard FICO pull.

 

The score on the letter is "accurate;" however, what exactly it's accurate of, is hard to tell with the way the system works.

 

If you post the other details, people might be able to provide a little more insight too.

Starting Score: EQ 04 561, TU 98 567, EX 98 599 (12/30/11)
Current Score: EQ 04 693, EQ 8 714, TU 8 710, EX 8 724 (05/27/16)
Goal Score: 700 on EQ 04 (01/01/17)


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New Member
Posts: 11
Registered: ‎05-21-2012
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Re: How Does CareCredit Affect Credit Score

Yeah, it says on the letter, and when I say letter I mean the information the screen of my computer displayed after I submitted the application online and was denied, that it was Transunion and listed their address and what not. I copied the details of that page that came up and pasted it into the prior post in this this thread. I think that everything besides for what I pasted was just generic information.

 

I can check when I get home but I'm pretty sure it doesn't say what version of TU it was.

 

I'm new to all this and as if it's not enough info to take in already, I'm further confused about the different models of the TU scores. If the model was updated I don't see why anyone would use the previous or outdated versions and why different versions exist, but I'm probably missing something or not taking something into account.

 

I've just heard that just about anyone and everyone gets approved for CareCredit. It may have had something to do with the fact that I applied for a couple credit cards that CreditKarma and some people from other forums suggested I apply for. But, I didn't think it would make that much of a difference.

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