10-03-2012 11:01 AM
Ok so I am still fairly new at this rebuilding stuff. I just had a new auto loan hit my credit(was a refi, for $6700) and a new cc from NFCU added for $500, balance was $181 at time of reporting. My score on credit karma didnt move(which would explain why the credit simulator didnt work either). And I checked my transunion score from their website, and it has only gone up 6 points. Is that normal? Is it good? Should it have gone down considering it is new debt?
Also, yesterday I closed my checking/savings with Wells Fargo, and I canceled my $500 secured card as well. I have only had it two months, but I realized it is not a card that I want to deal with. I am not sure if it was good or bad, but my husband was glad because he is upset that I am getting credit cards at all. He doesn't want any new debt, even if it is building my credit. Anyway, Wells said it would take 45-60 for my card to be completely canceled(even though it already doesn't work?) and they told me to continue to make my monthly payments until it is closed out, and they will send me any remaining funds. So do you think it is good that it will then report as paid/closed never late. Or will it look worse that I only had it for two months and canceled? Sorry for so many questions, just trying to get an idea of what to expect in the next month or two regarding my scores. Ultimate goal is to buy a house in 6 months! Thanks for all your input.
10-03-2012 11:17 AM
I can't speak for FAKOs as in the TransRisk and Vantage offered by CreditKarma and the TransUnion score from transunion.com (also Vantage), but your FICO score could have changed. I would guess at a score drop for the auto refi. I'd guess at an increase or decrease on the new CC. If you have other CCs, I'd guess a drop. If it's your only one or manybe you had one or two others, then there's a potential for a gain if util and/or AAoA didn't hurt you.
Closing the checking won't do anything to your score since checking accts are only factored in by collection agencies if you default.
I would have kept the WF CC open. You could have always sock-drawered it. It won't hurt closing early, but I'd PIF the balance ASAP.
You can built up your credit and still remain 100% debt-free. Just PIF after each use.
Don't apply for any new credit!!! The refi, the WF secured opening, and the NFCU would be a red flag and a drain on your score (aside from improvements to mix or util).
10-16-2012 08:01 AM - edited 10-16-2012 08:03 AM
You should not close credit card accounts. The best thing to do, generally, is to use the card once a year and pay it off immediately. 35% of your score is based on current history (last 12 months) If you keep it but never use it, then it will not continue to have the impact it would if you use it once a year. There are general rules of thumb but they don't always apply. One of the best resources would be to contact a lender that offers a score analyzer through the credit reporting agency they use. It is cheaper than paying for it directly through the bureaus and you know it is working within the scores they are using. Most are accurate within 10% of projecting increased scores assuming an increase in possible. Not all lenders offer it so you will want to shop around.
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