topic Re: Score Increase in Understanding FICO® Scoring

Score Increase

Anonymous — Wed, 15 Apr 2009 00:56:47 GMT

I need some help. I got an alert today sayig my score jumped 27 points because i opened a credit card account. does all my scores jump up 27 points.

Re: Score Increase

MizzB — Wed, 15 Apr 2009 02:33:32 GMT

From my understanding of CRA's credit scoring, different CRA handle changes in your credit profile differently. It's likely that all your scores did not jump exactly 27 points. To find out the exact changes, you'll have to check your scores.

Re: Score Increase

llecs — Wed, 15 Apr 2009 03:28:12 GMT

It is possible to get that gain if you lacked a mix of credit, which includes revolving and/or charge cards. When I first started rebuilding my credit, I started with 0 open CCs. When my first 3 reported, I saw gains of 40-50 points or so for all 3. Thereafter, I saw losses of 20-25 points with each new CC added. The gain was due to an improved mix of credit and improved utilization (basically went from $0 bal/$0 CL, which FICO sees as maxed I believe, to a normal utilization of 0%.)

As previous poster mentioned, it could be something else if you already had CCs opened.