New credit impact

Anonymous · ‎09-28-2010

Does getting a new credit card impact the score in any way other than the inquiry and the AAoA? The myFICO report on page 1 has one of the four categories as "New credit", which makes me think there is more to it than the above two factors.

I just obtained a new CC and there was no hit due to the inquiry. The card doesn't show up yet, but will hardly change the AAoA. This would be my second *open* CC and will contribute to the majority of my available credit. Does FICO somehow take into account how many dollars of new credit you obtained or what fraction of your overall credit is new?

AV

RobertEG · ‎09-29-2010

From the day the new card posts, it is counted as part of your % util of revolving credit.

Its CL and current balance are factored into your % util of revolving credit, both overall, and for the indiv card.

Anonymous · ‎09-29-2010

Thanks. I plan to keep the utilization really low. I understand from other posts that if I have two open CCs, I should keep one at 0% and the other at under 1%. Is this true or is it as good if I kept each card as well as the combined utliization at under 1% ?

Also, if I use the card for say $1000 and pay off say $990 as soon as I can (either right after the statement or earlier if allowed), then is the balance reported as $10 or $1000?

MarineVietVet · ‎09-29-2010

@Anonymous wrote:
Thanks. I plan to keep the utilization really low. I understand from other posts that if I have two open CCs, I should keep one at 0% and the other at under 1%. Is this true or is it as good if I kept each card as well as the combined utliization at under 1% ? No matter how many CC's you have try and have only one card report a small (<9% of credit limit) balance and the rest a zero balance.

Also, if I use the card for say $1000 and pay off say $990 as soon as I can (either right after the statement or earlier if allowed), then is the balance reported as $10 or $1000? Whatever amount is shown on your monthly statement is what is used to calculate utilization. In the case of a card with a $1,000 CL time your payments so that less than $90 is reported on the statement and then pay in full before the due date. That doesn't mean you can't charge more than $90 during the month it just means making sure it's paid down to that <9% level before the statement posts each month.