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What affect will this possibly have on my score?

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gettingstarted
Regular Contributor

What affect will this possibly have on my score?

I recently was approved for three prime cards on or about the same day and I closed HSBC\CapitalOne since it had a very small CL and an AF. My question is this what impact might it have on my score going from having $3900.00 in credit card limits to $26000 in one month with 4 hard inquiries?

Chase Military Star MasterCard(5K) Chase MWR MASTERCARD(3K) Discover More Card(6K) USAA World MasterCard(9K) Military StarCard(3K) USAA Platinum Visa (10.5K)

MY FICO SCORES MAY 20TH 2012: EQ 738 TU 747 EX PLUS SCORE 761
In Garden Mode Until May 15th 2013

Soldier Medic
Message 1 of 4
3 REPLIES 3
RobertEG
Legendary Contributor

Re: What affect will this possibly have on my score?

Positive:

Boost in overall % util; ;three individ revolving with initially 0% util, boosting the sum of indiv card % util scoring; increase in number of revolving (three added, one subtracted), thus increasing the denominator in your % revolv with balance calculation.

Potential improvement is score mix if current number of revolving is low.

More flexibility when needed.

Avoiding annual fee.

 

Negative:

Obviously, the inquiries, but only for one year.  Same for new accts<iyr.

Biggest hit will be in the reduction of AAoA by three accounts with zero age, which will vary depending upon your current AAoA.

Message 2 of 4
rckstrscott
Valued Contributor

Re: What affect will this possibly have on my score?


@RobertEG wrote:

Positive:

Boost in overall % util; ;three individ revolving with initially 0% util, boosting the sum of indiv card % util scoring; increase in number of revolving (three added, one subtracted), thus increasing the denominator in your % revolv with balance calculation.

Potential improvement is score mix if current number of revolving is low.

More flexibility when needed.

Avoiding annual fee.

 

Negative:

Obviously, the inquiries, but only for one year.  Same for new accts<iyr.

Biggest hit will be in the reduction of AAoA by three accounts with zero age, which will vary depending upon your current AAoA.


To add to what Robert was mentioned, the real immediate FICO determining factor will be what did your UTIL change from?

 

For example, if you already had lets say, 5% of 3900, you will have 1 1/2 % of 26000. That won't give you much, if any points at all. You might actually go down initially because of the AAoA, and the inquiries...

 

However, the flipside. If you had a higher util, lets say, 77% util on $3900 (which would be $3000) and you moved up to 26000 in avail credit, your util would drop to  
11% and you would get a rather large point swing on the util..

 

If your score isn't improved rigth away, that is okay. You have saved yourself money and have avail credit to play with and still stay under the 10%.

 

-scott

Starting FICO Score: October 2010: TU 498 | EQ: 502
Current FICO Scores:: May 2022: TU: 784 | EQ: 770 | EX: 790
Message 3 of 4
llecs
Moderator Emeritus

Re: What affect will this possibly have on my score?


@rckstrscott wrote:

To add to what Robert was mentioned, the real immediate FICO determining factor will be what did your UTIL change from?

 


+1....Util is key. I once added 3 new CCs at once adding over $30k in CLs. My FICO dropped 30+ due to the new credit, AAoA impact, etc., and because util only dropped by a few percent (balances were low to begin with). Had my CCs been maxed out, then I would have seen a gain.

 

As mentioned, the # of CCs you have outside of these new CCs too. If this is your second CC+ reporting, then you stand to see a likely gain.

Message 4 of 4
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