topic Re: How many cc apps allowed in a yr bfore it affects credit score? in Credit Cards

How many cc apps allowed in a yr bfore it affects credit score?

Anonymous — Sat, 04 Apr 2009 02:54:36 GMT

Sorry, I know this has been asked before: how many cc apps are allowed in a year before it affects your score?

Re: How many cc apps allowed in a yr bfore it affects credit score?

Anonymous — Sat, 04 Apr 2009 04:40:30 GMT

Zero -- depending on your score.

Re: How many cc apps allowed in a yr bfore it affects credit score?

score_building — Sat, 04 Apr 2009 05:00:20 GMT

as Whirled noted they will potentially hurt from the first one. there may be no freebies on hard pulls that appear on your reports depending on overall report info.

if 6 or more in a year, the likelihood of default has been shown to be extremely high. a reason why some lenders will deny or AA for too many inqs. at a certain point.

dazed wrote:
Sorry, I know this has been asked before: how many cc apps are allowed in a year before it affects your score?

Re: How many cc apps allowed in a yr bfore it affects credit score?

Anonymous — Sat, 04 Apr 2009 06:55:32 GMT

Whoa, things have changed in the 2 or 3 years since I looked into the credit card world. I hope/think I can get away with one w/out sustaining too much damage then.

Re: How many cc apps allowed in a yr before it affects credit score?

CreditAble — Sat, 04 Apr 2009 14:57:41 GMT

@Anonymous wrote:
Whoa, things have changed in the 2 or 3 years since I looked into the credit card world. I hope/think I can get away with one w/out sustaining too much damage then.

I had not applied for credit for 4 years.

When I obtained a new credit card my score went up a little.

You had asked a question about how many cards are "allowed" in one year before affecting score? You would have gotten a very different answer if you stated that you were app free for over three years and you only wanted to add one new tradeline

. The way you phrased your question was as though you wanted to apply fore as many new lines of credit as possible without lowering your FICO scores. That is what is known as risky behavior. Apping for one new tradeline after three years is considered responsible behavior.

Nothing has changed much with the scores FICO generates as a result of particular actions taken by the consumer. What has changed since you looked into the credit world, is that "risky behavior" and falling credit scores, trigger a lot more Adverse Action by existing creditors.

Re: How many cc apps allowed in a yr before it affects credit score?

haulingthescoreup — Sat, 04 Apr 2009 15:22:05 GMT

In my experience, there is no ding (or very, very minimal) for one inq per CRA per 12 months. So that is specifically answering the "cc apps" question.

If you get a new account from the inq, it generally drops your score for a while. The higher your score and/or the longer your history, the more it's likely to drop. Some folks with very little revolving (CC) credit never see a drop --they hold even or rise right away.

Re: How many cc apps allowed in a yr before it affects credit score?

CreditAble — Sat, 04 Apr 2009 17:31:25 GMT

@haulingthescoreup wrote:
In my experience, there is no ding (or very, very minimal) for one inq per CRA per 12 months. So that is specifically answering the "cc apps" question.

If you get a new account from the inq, it generally drops your score for a while. The higher your score and/or the longer your history, the more it's likely to drop. Some folks with very little revolving (CC) credit never see a drop --they hold even or rise right away.

I agree with the limited consequences of one app / year.

I don't agree that a longer history or a higher score

will be more likely to cause a subsequent score to drop

as a result of adding a new tradeline.

Could you explain the reasoning behind that belief?

Just because a score is higher doesn't mean

that there is any higher probability that adding

a tradeline would be treated negatively.

I understand the vulnerability of high scores to minor negative actions. The fact is that not all new tradeline additions are treated as a negative for FICO scoring purposes.

If anything I believe there would be a higher probability that a given action might not be considered a negative at all (with a higher scoring file). A high scoring file is more likely to not have any recent apps, inqs, or recently opened tradelines. A higher scoring file will be more likely to have a higher average age. A FICO score generated based on such a file (with no recent inqs, and apps) would be more likely to be higher (not lower) as a result of adding only one new account.

True a higher FICO score might suffer a greater point drop for a single inquiry, if there was going to be any net score drop in the first place. I just don't see how the assumption can be made that lower scoring files will do better than higher scoring files when a new tardeline is opened.

Message Edited by CreditAble on 04-04-2009 01:31 PM

Re: How many cc apps allowed in a yr before it affects credit score?

haulingthescoreup — Sat, 04 Apr 2009 20:11:38 GMT

Long history people aren't expected to go hunting credit. We've had members with scores in the 780's - 800's post startling drops for one new inq/ account. MidnightVoice was one, maybe? Time to hunt down again, sigh...

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&message.id=31955#M31955 -- plus several others on this thread

I might have seen something about this on the FICO High Achievers thread, too.

It makes sense to me that they would find a greater hit, as this group is expected to be settled in its use of credit. And remember that these formulas were derived from data gathered before rewards cards exploded on the scene, and before people started using credit tactically.

I have definitely seem immediate score increases for new credit in those with very young histories for the first 3 cards --this happened to all three of my kids.

Re: How many cc apps allowed in a yr before it affects credit score?

Anonymous — Sun, 05 Apr 2009 00:46:17 GMT

Oops, I didn’t realize my wording would give that impression. I only used “allowed” in the way I did b/c I thought I remembered seeing it used in a particular way here a few years ago. I thought I remembered that at that time CRAs usually didn’t ding people w/responsible histories for an approx. # of apps in a yr-usually about 2 apps.

My memory could very well be wrong, though. It’s got a history of unreliable behavior

Re: How many cc apps allowed in a yr before it affects credit score?

Anonymous — Sun, 05 Apr 2009 00:49:51 GMT

And then again, my mid 700's all went up 10 points when I applied for a mortgage with everything else being equal. I have yet to figure that one out.

Re: How many cc apps allowed in a yr before it affects credit score?

haulingthescoreup — Sun, 05 Apr 2009 00:52:11 GMT

teacherhere wrote:
And then again, my mid 700's all went up 10 points when I applied for a mortgage with everything else being equal. I have yet to figure that one out.

That's probably because for most score buckets (sorry, guys, but they're for real), the scoring formula "wants" to see a mortgage.