Understanding FICO® Scoring

[carl1167]

I'm a newbie to the board, so please forgive me if my questions are redundant. I have recently been approved for DiscoverMore(CL 5.5k), Visa Platinum(10k) and Mastercard World(7k). These are my first major credit cards with large CLs. Will this improve my score or will it stay the same? I started working on my credit with a score of (2008) 509 and apparently according to the last pull by USAA I was at 688. My only major credit card prior to now was a Orchard MC with CL of 300 as I got it when my credit score was 550. I'm hoping I receive some kind of bump with these new cards. Any knowledge in this area is most appreciated. Thank you......awesome site!

[jamie123]

It really depends....

Your scores will not just go up because of higher credit lines. If you do however have a high balance percentage on your existing credit cards it will reduce your utilization percentage which will raise your scores.

Don't forget that you will get a small hit to your scores for the hard credit pulls for the new cards. This will disappear after 1 year.

You do need to have a minimum of 3 credit cards to maximize your scores so the new cards will definitely help with that.

So....To answer your question more succinctly. Might not do much to your scores short term but in a year you will be golden!

Congrats on the new cards and welcome to the forum!

[carl1167]

Thank you! Probably shouldn't have but, applied for another card awaiting answer from the forum. Was approved for citi diamond preferred 2k cl. Looking to get in mid 7s soon as I need to refi the mortgage.Thanks for your knowledgeble answer!!!

[bettercreditguy1]

congrats. You have some very nice entry level credit limits. +1 to Jamie's response. Let things ride for a year or so as the inquiries and hits for "new accounts" will diminish by then.

[carl1167]

Thank you! So, do you think my score will decrease, increase, stay the same? Need to refi my house no later than May of 13 and hoping for a high score prior. Thank you for your assistance. I'm so un-knowledgeble in this arena.

[jamie123]

You need to read up in the "Credit Card" forum here. You must learn how to properly use and pay your credit cards to help increase your scores. With proper management of your credit cards your scores should be significantly higher by April.

Don't get anymore cards or other credit until your mortgage closes!!!! You need at least 6 months from getting new credit and applying for a mortgage without raising lender's concerns.

You did really well getting these new cards. They will benefit you in the long run.

Good luck!

[carl1167]

Never mind. Jamie, actually answered and I missed it. I need to just leave it alone and not charge anything and in a year I'll be good. Assuming, my scores should be good by May when I need to get out of my current mortgage rate. Thank you for all your help!

[jamie123]

No! No! No!

YOU MUST USE ALL YOUR CARDS EVERY MONTH AND PAY THEM OFF CORRECTLY!!!!

If it was as easy as just putting our cards in a sock drawer to have good credit we wouldn't be on these forums! It doesn't work that way!

Read. Read. Read some more.

[carl1167]

Thanks Jamie! I'm done, guess I need to find a garden. Don't really know what that means. Assume, let it grow. Thanks again, big help.

[Shogun]

Small charges and then pay the bill works good for these cards to let them grow.  If you're going to buy something anyway, use the card, then go online and pay it!