lost 100 points in less than a week:(

[Thomas_Thumb]

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@Anonymous wrote:

hello...this is my first post but i been looking in the forums for some time.

 i been in file with trans union from 1994 but never have a credit card or anything till 2014

open a secure credit card in march 2014 with bank of america.deposit 300 $

use the card and pay in full every month.after 7 month i ceck my fico score on october 20 and show like this

trans union 705 equifax 719 experian 720

have only one hard pull with bank of america reported with trans union only.

no late payments.no badies,nothing bad in my credit file

apply on november 4 and got aproved for chase freedom for $ 500 credit line.

one week later my scores drops 9 points.

on november i ceck again my fico score and see a drop of 100 points

trans union 609 equifax 634 experian 635

i did use use the chase credit card $465 and see that in novermber 20 chase reported credit utilization 64%

since november 28 both cards are pay in full and have $0 balance.

can you  lose 100 points because credit utilization reported balance  465$ on chase freedom and 42$ on bank of america credit card

like i say...i have nothing bad in mu credit history.no late payment...nothing...only 2 credit cards boa 300 secured and chase freedom 500 unsecured

and 2 hard pulls reported only in trans union boa and chase freedom.

 75k income.any help or advise are welcome.thanks

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Nothing to be concerned about as you have done nothing to damage your credit. You are a newbie with thin credit - so your scores are more susceptable to swings. A few things are in play:

1) Thin account with new card reporting can create shock waves & tank score temporarily. Impact will dissipate completely in a month or two.

2) The high utilizaqtion on the new card (465 out of 500 is actually 93% for the card) and that is red flag max out territory - a max out on a thin file with no history is A BIG DEAL for scoring. Fortunately, card utilization has no memory and you get a fresh start next month. I would strongly suggest keeping reported card utilization onder 50% and preferrably under 30%..

3) Your total charges appear to be $507 witha combined CL of $800. This computes to 63% aggregate utilization - another red flag. Aggregate utilization should be maintained below 30% to avoid substantial scoring penalities.

4) The new inquiry could cost you 10 to 15 points on whatever CRA it is listed on. As an FYI inquiry Impact lingers for 12 months. No problem here as that is the price of establishing credit and you should continue on - get a 3rd card after your "out of control" reported utilization is reduced to "acceptable" levels

5) lastly,, you reported balances on 100% of your open accounts. If you have more than one account, this is a minor infraction and can contribute a 5 to 10 point deduct. However, don't worry about this trivial infraction as you should use and report some balance on both cards to build credit history - IMO. Once you have 3 cards, then consider reporting a balance on no more than 2 each month. Ultimately, you should get 3 unsecured credit cards and lose the secured one.

Your score drop, while severe, is not unexpected given the circumstance. The severity of such transgressions will diminish as you build a solid payment history and a critical mass of accounts. Key point is never pay late and try to avoid maxing out credit lines.

Thanks for sharing your story.

[Thomas_Thumb]

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Double posted - not sure why

[elim]

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@Anonymous wrote:
I am going to go against the grain here. Not only should you apply for another card, you should apply for two. I would suggest applying for a Capital One Platinum, and a Cap One QS1. Apply back to back, same broswer session, no waiting. They will probably start you off at $300/$500, but they will grow very quickly - easily to $3-5k in six months, as long as you use them a lot. You can request CLI after the second/third statement and they do an automatic increase after the fifth statement. If they grow like most they should go to $2300/$3500. Thats what mine did. And my file is anything but clean. When mine got to that level at the end of august I combined them into a single $5800 card and opened another platinum card, which has already been bumped up to $1500. In a years time when Chase is *ready* to give you a cli, you could have a $10k credit line at Cap One.

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  +1

   these are my thoughts...  thicken it up while the scores aren't important, then let them all age together.  wait until your utilization reports the pay-off before you apply.  I bet Cap1 will give you decent starting limits.

  whatever you decide to do... best of luck at it     :]

  edit: may as well throw in a Share Secured Loan from your local CU

[Anonymous]

to thomas _tumb.thanks so much for the help and advise..one of the best

thanks again to all for the help