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Contributor
OHWWCB
Posts: 298
Registered: ‎07-02-2014
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Re: New Credit Cards Initial Hit To Scores

I'm SUPER anxious about what this will do to my scores as well. Listed as a negative on my Experian credit report was that I had low credit card limits. Well in two days I went from about $2300 in open available credit to almost 20k. Yes, this will impact my AoA, BUT I backdated my AMEX charge card to 1999. However, I'm still really confused about how a charge card will even report which leaves me back in the gray area! Haha!


AMEX Green | Chase Sapphire Preferred $6500 | Discover IT $6000 | Marriott Premiere Rewards $5000 | Chase Freedom $4500 | US Airways Dividend Miles $1500 | CapitalOne Quicksilver One $1000
Regular Contributor
burghpa
Posts: 165
Registered: ‎07-31-2013
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Re: New Credit Cards Initial Hit To Scores

[ Edited ]

OHWWCB wrote:

 I went from about $2300 in open available credit to almost 20k.


 Same scenario here, I only had about $3.5K open CL, now it 20k+ in 2 weeks. Not sure what will happen when 3 new cards added this month alone. I got 1 point ding for Inquires.  My AAOA is going to take a hit , so score may go down. Then again, I had a very thin file, so it could go up as well.

 

July 2014 ScoreMarch 2013 Score222222
720550      $8900                 $6500                 $4500                 $2000                 $1500                 $5000/$900                  
Regular Contributor
yfan
Posts: 236
Registered: ‎07-17-2014
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Re: New Credit Cards Initial Hit To Scores


OHWWCB wrote:

I'm SUPER anxious about what this will do to my scores as well. Listed as a negative on my Experian credit report was that I had low credit card limits. Well in two days I went from about $2300 in open available credit to almost 20k. Yes, this will impact my AoA, BUT I backdated my AMEX charge card to 1999. However, I'm still really confused about how a charge card will even report which leaves me back in the gray area! Haha!


From myFICO's own writings, charge cards don't count towards the balance portion of your score at all. They DO, however, count towards payment history. It also tells creditors that your credit is good enough that others trust you with a charge card with no pre-set limits.

 

With respect to this topic, however, as other mentioned, new inquiries and AAoA may make your score go down. On the other hand, if the new card(s) come with a substantially high limits, they will also increase your available credit line, and therefore, assuming no changes in your spending pattern, lower your debt-to-credit ratio, which should HELP your score.

Valued Member
JcT21
Posts: 26
Registered: ‎02-20-2014
0

Re: New Credit Cards Initial Hit To Scores

[ Edited ]

just over the last week or so ive applied for and was approved for barclays rewards & a discover it card.   my equifax fako score has dropped 11 points with the 2 hard pulls and barclays reporting.  i have not received the discover yet but i assume my score may drop a few more points once this card is activated and starts reporting.  my first cards in almost a year.  i didnt expect that much of a drop, especially with my low utilization and increasing my overall limits.

8/5/14 - Transunion - 702 - Experian - 711 - Equifax - 696
goals: all 3 at 720+ in the garden until spring 2015!
New Contributor
RecoveredDebtaholic
Posts: 71
Registered: ‎06-25-2014
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Re: New Credit Cards Initial Hit To Scores


jacksont1981 wrote:

RecoveredDebtaholic wrote:
It will be interesting to find out for me, 7 new inquiries and 7 new trade lines from June 30 until they all report.

Keep me updated RecoveredDebtaholic! I cant wait to see mine as well


Got a fico change alert from Sallie Mae Barclays today (see sig) Changes on my credit report are: New Citi TYP reported $9.00 balance New Sallie reported $12.00 balance New BOA Cash Rewards reported $0.00 balance Still waiting for other new cards to report from 6/30 spree Amex Blue Cash Quicksilver Chase Freedom Discover it Have used all of them, expect to report $0.00 or minimal charges like Citi and Sallie above. Also will be expecting BOA to report 6k 0% balance transfer from AU account but should be same overall utilization as the AU reports down to $0.00
TU FICO 10/2/14 826
Contributor
OHWWCB
Posts: 298
Registered: ‎07-02-2014
0

Re: New Credit Cards Initial Hit To Scores

ScoreWatch updated again. So I've gone from a 680 score pre-app spree to 666 (ugh!) and my utilization has stayed at 1%. Time to garden until 2015!


AMEX Green | Chase Sapphire Preferred $6500 | Discover IT $6000 | Marriott Premiere Rewards $5000 | Chase Freedom $4500 | US Airways Dividend Miles $1500 | CapitalOne Quicksilver One $1000
New Contributor
RecoveredDebtaholic
Posts: 71
Registered: ‎06-25-2014
0

Re: New Credit Cards Initial Hit To Scores

Little bump today via Barclays score change alert (see sig) still waiting for 3 out of 8 to report.
TU FICO 10/2/14 826
New Contributor
RecoveredDebtaholic
Posts: 71
Registered: ‎06-25-2014
0

Re: New Credit Cards Initial Hit To Scores

Discover statement cut update in sig 8/12. Still waiting on Cap one 10k and Disco 8.5k to report as well as an AU CSP 16k
TU FICO 10/2/14 826
Established Contributor
cashnocredit
Posts: 1,025
Registered: ‎07-18-2009
0

Re: New Credit Cards Initial Hit To Scores


OHWWCB wrote:

I'm SUPER anxious about what this will do to my scores as well. Listed as a negative on my Experian credit report was that I had low credit card limits. Well in two days I went from about $2300 in open available credit to almost 20k. Yes, this will impact my AoA, BUT I backdated my AMEX charge card to 1999. However, I'm still really confused about how a charge card will even report which leaves me back in the gray area! Haha!


This negative reason only applies to the Experian score you got with your report. It is not a factor in FICO scores but is a factor in many FAKOs. The increase in available credit won't impact FICO scores directly but could alter utilization a great deal depending on your usage. The Amex backdating will have a pretty major positive affect. Amex charge cards report as open accounts (not revolving). They don't report credit limits but do report your historical high balance.

I have reestablished credit over the last couple years
so my moniker is, well, rather out of date.

WM Discover $1800, WF Plat 12k, Chase Freedom Siggy15k, Amex Plat (60k H/B), Citi AA EWMC 25k

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