Three open, four closed in one month. Bad idea?

[UpNComing]

I am new to this forum.  Great site!  I am rebuilding from lack of credit respect in my early 20s.  I have been on the rise rather quickly.  Within the last 30 days I have done the following:

Closed rebuilding cards First Premier X2 CL $400 each and Orchard Bank X2 CL $500 & $400

Opened Amex CL $2000

Opened WaMu CL $5000

Opened Citi CL $2500

Transfered $4000 to WaMu from Honda Card (previously closed)

My scores are mid 600s across the board.  Will all this activity in such a short time lower my scores?

[llecs]

Closing those cards, in the short-term, won't hurt you any. But they will drop off 10 years from that point and you could lose some history then.

But you may lose points now due to the new credit. However, any loss would be temporary and you'll mostly rebound in the next 6 months.

[haulingthescoreup]

Welcome to the forums, UpNComing!

Your scores will drop when all three new accounts drop, but don't panic. It's temporary, and if the others were all you had, your scores will recover and then be even better within months.

If you haven't done so already, be sure to do research here on how to work your cards, find out when and how much they report, and so on. Those are much better cards than what you had before, and they're really going to help you out in the long run. Since one of them is an American Express (which one, by the way?), be very very sure to pay it off every single month, whether it's a charge or credit card, and keep your overall util low, as in under 10%. In case you've gotten a taste for app'ing, hold off for a while and let these 3 simmer and start letting those good cooking smells out.

Nice job with the credit upgrade!

[UpNComing]

Thanks haulingthescoreup!

Amex Jetblue.  I'm thinking about product changing to the Blue since I havent been traveling more than a couple times a year now.  I'm a little torn.

[RobertEG]

UpNComing, you are on the right track!

The only advice I would give is NOT to obsess on short term FICO scores for a person of your history.  You have secured some great cards with solid CLs.  Your FICO is low primarily because you have short credit history, and no installment/mortgage loans to add to your credit mix.  But I do not suggest, in saying this, that you rush out to buy three new cars, and get a mortgage!  You have solid CLs. You have a sound footing for future FICO soars.

You just gotta get real old like me to hit the higher FICOs.  So, dont ever, ever, ever, and ever, Amen, have a late payment, and take the geat credit you have now, and just wait for the tide to come in.

I wish I had had the credit saavy that you now have when I was in your age of enightenment.

The only time you need to be concerned with your immediate FICO is the day befpre you apply for new credit.  You apparently know the rules for building a great FICO, so just play the game as you know it, and wait for the fruits of fruition from your current efforts in the next few years.

When, and if, it fits your finances, getting an installment loan will add to your credit mix.

Message Edited by RobertEG on 05-03-2008 12:51 AM

[UpNComing]

Great advice RobertEG!   I'm a General Sales Manager at a car dealership which has helped to educate me on the importance of great credit.

I do have a lease, motorcycle and 300K mortgage to add to the mix.

Message Edited by UpNComing on 05-03-2008 06:09 AM