topic Re: New card: How much will my credit score reduce? in Credit Cards

New card: How much will my credit score reduce?

Anonymous — Mon, 24 Dec 2007 07:11:11 GMT

Hello,

Does anyone here know by how much my credit score is likely to reduce if I apply for a new credit card? My FICO score is around 750, and I have no debts (though I am planning to take a home mortgage in the six months or so).

The reason for asking is that I've received a great offer to receive 25,000 free miles by applying for this new card. That number is enough to get me a round trip air ticket for which I otherwise would have paid $350. So I'm very tempted, but wanted to check how this will affect my credit score.

FWIW, I plan to cancel the credit card within a year (because there is an annual fee after that).

Thanks in advance.

Re: New card: How much will my credit score reduce?

Red1Blue — Mon, 24 Dec 2007 07:13:28 GMT

Why not wait till you buy the house and then approve for new cards?

Re: New card: How much will my credit score reduce?

Anonymous — Mon, 24 Dec 2007 07:18:40 GMT

Agreed - I would not make any changes util the home loan is approved and closed.

Besides paying revolving debt down- bot not to zero.

concorduser wrote:

Why not wait till you buy the house and then approve for new cards?

Re: New card: How much will my credit score reduce?

haulingthescoreup — Mon, 24 Dec 2007 13:36:42 GMT

Also, the higher your FICO's initially, the larger of a score hit you will typically take with the inq and new account. And mortgage lenders typically get a bit twitchy if a prospect has been seeking credit within 6 months of a mortgage app, although one card might not be that big a deal.

I used to read that 720 was as high a score as you needed to get the best home loan rates, all other things being equal. But these days, keeping that 750 might be pretty smart.

Re: New card: How much will my credit score reduce?

Focus — Wed, 26 Dec 2007 23:15:14 GMT

Opening a new account took me from 777 to 744.

Re: New card: How much will my credit score reduce?

haulingthescoreup — Wed, 26 Dec 2007 23:26:58 GMT

@Focus wrote:

Opening a new account took me from 777 to 744.

Whew! that's harsh.

Re: New card: How much will my credit score reduce?

Focus — Thu, 27 Dec 2007 01:02:45 GMT

Yes it was, although I immediately went over 50% utilization upon opening the account (Levitz card furniture financing). The utilization was probably a big part of the hit. I just paid it off and closed the account since Levitz is going out of business, so I'm expecting 10-15 points to come back once the payment is reflected. We'll see...

Re: New card: How much will my credit score reduce?

Kooliad — Thu, 27 Dec 2007 03:07:24 GMT

WOW sorry about that big hit. I think it will come back in 2 or 3 months

Re: New card: How much will my credit score reduce?

Anonymous — Thu, 27 Dec 2007 03:27:17 GMT

When I was in the mid 600's I gained pts, but when I hit 700 I lost 33 pts on my EQ(yikes!!)--I'm still waitin on the others. I know my hit was because of the buckets thing too--UUGGHH!!

Re: New card: How much will my credit score reduce?

Anonymous — Thu, 27 Dec 2007 04:41:58 GMT

i took 19pt hit for 1 inq. 761 to 742. unreal.

Re: New card: How much will my credit score reduce?

ccaddict — Thu, 27 Dec 2007 07:36:04 GMT

@Anonymous wrote:
I know my hit was because of the buckets thing too--UUGGHH!!

What is a bucket?

Re: New card: How much will my credit score reduce?

marty56 — Thu, 27 Dec 2007 12:50:22 GMT

My EQ score went from 710 to 712 when I got a National City Visa card with 10k CL The hard pull was done on TU which had no affect on my TU score bit I havent pulled my TU or EX report now that the account showed up on my EQ report. I had a util on a account go to 0 at the same time so I dont know if that mutted the sting. It is also possible that FICO has me in a credit rebuild/semi-subprime? score bucket so maybe it would have hurt mroe if my scores were higher.

Re: New card: How much will my credit score reduce?

Anonymous — Thu, 27 Dec 2007 16:12:05 GMT

@ccaddict wrote:

@Anonymous wrote:
I know my hit was because of the buckets thing too--UUGGHH!!

What is a bucket?

Supposedly when you are grouped with other people that are in the similar situation as you are. Fused seems to explain this clearer so maybe fused will answer your question. Also, do a search on here for buckets.

Re: New card: How much will my credit score reduce?

MidnightVoice — Thu, 27 Dec 2007 16:17:26 GMT

jaybee wrote:

Supposedly when you are grouped with other people that are in the similar situation as you are. Fused seems to explain this clearer so maybe fused will answer your question. Also, do a search on here for buckets.

Not to mention a search for mangos

Re: New card: How much will my credit score reduce?

Anonymous — Thu, 27 Dec 2007 16:21:16 GMT

Thanks, they were mangos. I couldn't figure out the other fruit (I only got apples and oranges), so I just left them out completely.

Re: New card: How much will my credit score reduce?

Anonymous — Sat, 29 Dec 2007 02:35:23 GMT

well i took that 19 pts for the inq. and now approved for card. i wonder what more damage to my score. Any input? Thanks

Re: New card: How much will my credit score reduce?

marty56 — Sat, 29 Dec 2007 03:36:44 GMT

Took a 15 point EQ hit for a second inq, The first one was by Verizon (new cell phone, who knew?) on top of a new account.

In the past 3 years I applied for 2 new credit cards while I reduce my debt from 70k to 5k. The FICO system says the inq+new accounts means I am desperate for new credit thus the score hit and I am it risk.

I think the risk ship sailed a few years back. They only think I want to max out now is my FICO score.

They only thing I really need the high FICO score is for a new car loan next year. Oh and the BofA pre-approval notice that will be returned to them with words go Frak yourself on it. Okay my bad.

Re: New card: How much will my credit score reduce?

Anonymous — Sat, 29 Dec 2007 04:19:13 GMT

I was almost at 700 w/ one of my scores when I got my first Amex I think it was, all I know is I took a 30 point loss- it was tough! But it has almost recovered over time.

Message Edited by netpanther on 12-28-2007 11:19 PM

Re: New card: How much will my credit score reduce?

Focus — Mon, 31 Dec 2007 06:16:42 GMT

Update: it went back up 14 points after the payment was reflected and I closed the account. Dunno if I'll ever see the 777 I had before opening that account a few months ago though...

Message Edited by Focus on 12-30-2007 10:16 PM