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Questions about the System

Valued Contributor

Questions about the System

I have a couple questions about how the scoring affects this part of someones score. 

 

1. If i have more credit cards, will my score go up faster, i understand the more accounts the better your score improves. I currently have 5 and am thinking about getting a prime card and closing out the others.

 

2. Is credit utilization based on all my cards combined or seperatly? E.g if i use card 1, less than 10% and dont use the rest of my cards will my score improve or hurt, because the utilization wasnt on all the cards?

 

3. Inquiries, how many inquiries are too many to have when applying for a prime card, i was thinking maybe Discover or Chase. 

 

4. Is asking for a credit increase a soft or hard inquiry?



I realized i am still young and still have many years to achieve whatever i want.
Message 1 of 5
4 REPLIES
Epic Contributor

Re: Questions about the System


Skye12329 wrote:

I have a couple questions about how the scoring affects this part of someones score. 

 

1. If i have more credit cards, will my score go up faster, i understand the more accounts the better your score improves. I currently have 5 and am thinking about getting a prime card and closing out the others.  No, the number of cards doesn't really matter, it is how you manage them.

 

2. Is credit utilization based on all my cards combined or seperatly? E.g if i use card 1, less than 10% and dont use the rest of my cards will my score improve or hurt, because the utilization wasnt on all the cards?  Both individual and overall utilization is used.  Let all but one of your cards report a 0 balance and the other at 9% or below for optimal FICO scoring.  Never let all report 0, FICO doesn't like that.

 

3. Inquiries, how many inquiries are too many to have when applying for a prime card, i was thinking maybe Discover or Chase. That would be up to the creditor. 

 

4. Is asking for a credit increase a soft or hard inquiry?  Usually a HP.


 

Message 2 of 5
Moderator Emerita

Re: Questions about the System

1. No, increasing your cc's will affect your AAOA negatively. Your AAOA Is 10% of your CS
2. Credit util is the total of all your cc's however if you max out 1 cc it will also affect your CS. For instance your overall util isv39% but you have 1 cc at 80%
3. Inq's are tied to your cr profile. A thin file will be more susceptible to a decline with excessive inq's. +/- 4 on a thin file might be considered excessive
4. Different lenders will grant CLI's on SP's . Others HP's only. It really depends on the lender.
Message 3 of 5
Epic Contributor

Re: Questions about the System

AAoA is 15% of your score.

 

FICO looks at both individual and overall utilization. 

 

Closing the credit cards will not hurt your AAoA.  But if you have balances on them I would not close them until paid off.  If you apply for too many new lines of credit (10%) that can hurt your score.

Message 4 of 5
Valued Contributor

Re: Questions about the System


Skye12329 wrote:

I have a couple questions about how the scoring affects this part of someones score. 

 

1. If i have more credit cards, will my score go up faster, i understand the more accounts the better your score improves. I currently have 5 and am thinking about getting a prime card and closing out the others.

 

2. Is credit utilization based on all my cards combined or seperatly? E.g if i use card 1, less than 10% and dont use the rest of my cards will my score improve or hurt, because the utilization wasnt on all the cards?

 

3. Inquiries, how many inquiries are too many to have when applying for a prime card, i was thinking maybe Discover or Chase. 

 

4. Is asking for a credit increase a soft or hard inquiry?


Conventional wisdom is that one should not close out cards unless there's an AF that you can't justify.  Just SD the one(s) you don't use, and perhaps use them once in a while for a small purchase (and immediately pay it off) to keep the card active.  

EX = 849 EQ = 850 TU = 850 as of 07/2017
Retired and Retiring Cards!
Message 5 of 5