topic Re: FICO score: how long does it take to increase? in Understanding FICO® Scoring

FICO score: how long does it take to increase?

Cstl05 — Sun, 31 Jan 2010 05:53:08 GMT

My original score was 780, after opening 2 accounts, declined for 2 accounts, and 2 hard inquiries on my credit score it has gone down to 745. With 10% utilization, and now having a balance on just one card instead of 5, how long can I expect to wait before my score starts to increase again? I have about 50k revolving credit, no late payments, the only things myfico is showing that has hurt my credit score are the new inquires. Myfico shows 9 revolving accounts, currently trying to keep it to my Amex as the only one to have a balance, is this a smart idea or should i have a balance on another card or two too? My oldest account is 18 years old. Credit cards are always paid in full each month. Any advice would be much appreciated!

Message Edited by gl4662 on 01-30-2010 09:51 PM

Message Edited by gl4662 on 01-30-2010 09:53 PM

Re: FICO score: how long does it take to increase?

Jazzzy — Sun, 31 Jan 2010 14:12:48 GMT

@gl4662 wrote:
My original score was 780, after opening 2 accounts, declined for 2 accounts, and 2 hard inquiries on my credit score it has gone down to 745. With 10% utilization, and now having a balance on just one card instead of 5, how long can I expect to wait before my score starts to increase again? I have about 50k revolving credit, no late payments, the only things myfico is showing that has hurt my credit score are the new inquires. Myfico shows 9 revolving accounts, currently trying to keep it to my Amex as the only one to have a balance, is this a smart idea or should i have a balance on another card or two too? My oldest account is 18 years old. Credit cards are always paid in full each month. Any advice would be much appreciated

Hi...and welcome.

I think you are best off to try to keep your balance on just one card. FICO likes to see balances on less than half of your revolving tradelines. They also like to see that balance under 9%, or as low as possible.

Can I ask if the scores you have given are FICO scores...or are they "credit scores" sold by various companies? Where are you getting your scores? I ask, because at 780....why did they tell you that you were declined?

Also, when you say that the "cards" are always paid in full each month...does that mean you are letting balances on other cards show before you pay them off? I guess I'm a bit confused.

Re: FICO score: how long does it take to increase?

Cstl05 — Sun, 31 Jan 2010 17:39:55 GMT

Thank you for the reply. My credit scores were from myfico.com, except for experian I got that from their website. What I meant by paying off my cards is whenever the balance is posted I pay it right away, so usually before the due date everytime. By the time I had applied and been declined for my other two cards my credits score had fallen to 756, they said I had to many new accounts/inquiries, and that is why I got declined, when they pulled my experian, i pulled it to to see why, and it seems experian had many more inquiries on their credit score than TU or Eq.

This are all the reason for my decline:

I just applied for an AMEX blue cash card and was declined..

They said it was due to the following:
1. Opened too many new accounts (Only opened 2 last year Nov 2009 1. AMEX Delta Gold 2. Citi AA)
They might be going back 2 years from the time you applyed.
Past Two years I have opened 3 accounts total

2. No recent revolving bank account information? What does this mean?
this one sounds like a bogus reason to me.

3. Length of time accounts have been established'
How old is your oldest account?
18 years old

4. Ratio of the highest account balance to the sum of the balances on all accounts (what does this mean?)
Most banks like seeing low balances on overall credit limits and on a single card.
Ah yes.. Right now I have balance on three cards

My Fico Score Nov was 780, after inquiring for 2 CLI's and being declined it has gone down to 756, before being denied the AMEX blue cash card. I have about 10 cards total, but I only use 3.

So,
How much will my score go down now?
When can I apply for a new card again? (I have a citi AA card and an Amazon chase that I would like to replace with cash back cards, thus my reason for applying for new cards)
What's the best way to get my score back up?

Any advice would be great, thank you in advanced

Re: FICO score: how long does it take to increase?

Cstl05 — Sun, 31 Jan 2010 17:40:21 GMT

thanks for the welcome too!

Re: FICO score: how long does it take to increase?

Anonymous — Sun, 31 Jan 2010 19:11:18 GMT

@gl4662 wrote:
My original score was 780, after opening 2 accounts, declined for 2 accounts, and 2 hard inquiries on my credit score it has gone down to 745. With 10% utilization, and now having a balance on just one card instead of 5, how long can I expect to wait before my score starts to increase again? I have about 50k revolving credit, no late payments, the only things myfico is showing that has hurt my credit score are the new inquires. Myfico shows 9 revolving accounts, currently trying to keep it to my Amex as the only one to have a balance, is this a smart idea or should i have a balance on another card or two too? My oldest account is 18 years old. Credit cards are always paid in full each month. Any advice would be much appreciated!

My advice? Be happy for your scores and sleep well at night. You are almost to "FICO High Achiever" status (760+). Keep doing what you're doing. Pay on time, keep your utilization low, and don't apply for any more new credit. Your scores will take care of themselves.

It's important to maintain a good credit rating but don't obsess over a few points here and there. You're doing just fine.

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work.

Re: FICO score: how long does it take to increase?

Cstl05 — Sun, 31 Jan 2010 19:52:10 GMT

Thanks for the reply. Wow, great job on your credit score, so from what I am doing I should see an increase in about a month or so? Also kinda off topic but how often should I try and get a CLI?

Thanks!

Re: FICO score: how long does it take to increase?

Anonymous — Sun, 31 Jan 2010 22:47:01 GMT

@gl4662 wrote:
Thanks for the reply. Wow, great job on your credit score, so from what I am doing I should see an increase in about a month or so? Also kinda off topic but how often should I try and get a CLI?

Thanks!

I can't say whether it will be in a month or any time frame but I can predict an upward movement.

I'm not very well versed in the intricacies of CL requests. I'll let others address that.

Re: FICO score: how long does it take to increase?

Cstl05 — Sun, 31 Jan 2010 22:50:52 GMT

Thanks for the reply. Also, another question of interest, when would be a good time to reapply for the card I was declined for?

Re: FICO score: how long does it take to increase?

Anonymous — Sun, 31 Jan 2010 23:10:06 GMT

@gl4662 wrote:
Thanks for the reply. Also, another question of interest, when would be a good time to reapply for the card I was declined for?

Once again I will defer to others. I've never asked for a recon for a decline. There are too many other CCC's out there that might want my business.

Re: FICO score: how long does it take to increase?

Cstl05 — Sun, 31 Jan 2010 23:24:25 GMT

Great point. Im trying to find a card to replace my citi mastercard, and that is why I applied for the Chase Freedom and Amex Blue Cash, and because those cards are regarded as very good cash back cards. Forgive my ignorance, but are there any other good cash back cards I could look into and have a chance of getting if applied for? Prefferable easy CLI too, that is why I went to Amex

Thanks

Re: FICO score: how long does it take to increase?

Anonymous — Sun, 31 Jan 2010 23:47:37 GMT

@gl4662 wrote:
Great point. Im trying to find a card to replace my citi mastercard, and that is why I applied for the Chase Freedom and Amex Blue Cash, and because those cards are regarded as very good cash back cards. Forgive my ignorance, but are there any other good cash back cards I could look into and have a chance of getting if applied for? Prefferable easy CLI too, that is why I went to Amex
Thanks

LOL. You're going to stop asking me questions because I seem to have few answers. I haven't applied for a card in over 5 years and don't plan on getting another one anytime soon.Therefore I don't keep up on the latest reward card offers.

Re: FICO score: how long does it take to increase?

Jazzzy — Mon, 01 Feb 2010 04:25:15 GMT

@gl4662 wrote:
Thank you for the reply. My credit scores were from myfico.com, except for experian I got that from their website. Don't pay any attention to the Experian score. It is not a FICO score.

What I meant by paying off my cards is whenever the balance is posted I pay it right away, so usually before the due date everytime. Don't ever let your payments go past the due date.

By the time I had applied and been declined for my other two cards my credits score had fallen to 756, they said I had to many new accounts/inquiries, and that is why I got declined, when they pulled my experian, i pulled it to to see why, and it seems experian had many more inquiries on their credit score than TU or Eq. When you start getting declined for too many new accounts and too many inquiries, you know it's time to cool it. By making more applications now, you may be wasting inquiries for nothing.

This are all the reason for my decline:
I just applied for an AMEX blue cash card and was declined..

They said it was due to the following:
1. Opened too many new accounts (Only opened 2 last year Nov 2009 1. AMEX Delta Gold 2. Citi AA) You just got an Amex card in November, yet you applied for another AmEx product. They may want to see some payment history from you first before they grant you more credit.
They might be going back 2 years from the time you applyed.
Past Two years I have opened 3 accounts total 3 accounts in 2 years isn't bad, but it sounds like 2 of them were just in November.

2. No recent revolving bank account information? What does this mean? Can't tell you what this means. You obviously have revolving accounts.
this one sounds like a bogus reason to me.

3. Length of time accounts have been established' Here they may be looking at your newest accounts
How old is your oldest account?
18 years old

4. Ratio of the highest account balance to the sum of the balances on all accounts (what does this mean?)
Most banks like seeing low balances on overall credit limits and on a single card.
Ah yes.. Right now I have balance on three cards Try to let only one card show a small balance, and then pay that card off right after the statement cuts.

My Fico Score Nov was 780, after inquiring for 2 CLI's and being declined it has gone down to 756, before being denied the AMEX blue cash card. I have about 10 cards total, but I only use 3.

So,
How much will my score go down now? Your score may or may not go down now. Your score doesn't go down just because you are declined. What has likely caused your score to drop is the new cards and the inquiries.
When can I apply for a new card again? (I have a citi AA card and an Amazon chase that I would like to replace with cash back cards, thus my reason for applying for new cards) I understand your desire to find a good rewards card. I am a true believer in rewards myself...but at this time you need some patience. I wouldn't apply for a new card until my last new one passes 6 months of age. Give it a bit of time. Creditors don't like when you apply for too much new credit (new cards and credit line increases) all at one time.
What's the best way to get my score back up? Time will help. You need to let your new cards age a bit, and you need to let some of the inquiries get over a year old.

Any advice would be great, thank you in advanced

Re: FICO score: how long does it take to increase?

Jazzzy — Mon, 01 Feb 2010 04:27:43 GMT

@gl4662 wrote:
Thanks for the reply. Wow, great job on your credit score, so from what I am doing I should see an increase in about a month or so? Also kinda off topic but how often should I try and get a CLI?

You may or may not see an increase in about a month. Keep the balances off your credit cards, and that will likely help.

I don't try very often for a credit line increase. (Why is it that you need increases?) Sometimes they pull another hard inquiry, and, right now, that is NOT what you need. Let things simmer a bit.

Re: FICO score: how long does it take to increase?

Jazzzy — Mon, 01 Feb 2010 04:28:40 GMT

@gl4662 wrote:
Thanks for the reply. Also, another question of interest, when would be a good time to reapply for the card I was declined for?

Give it at least 6 months from the declined application...this is AmEx we're talking about. They are very conservative.

Re: FICO score: how long does it take to increase?

Cstl05 — Mon, 01 Feb 2010 04:42:09 GMT

Thank you very much for the replys. I plan to do just that (cooldown). I found out my citi AA was a no pre set limit card, so I have changed that over to their cashreturns card which has a set limit. The reason for getting a CLI increase is that with 50k revolving credit I usualy spend 10 grand a month.. Which is hard to do with a 2k limit on one card, but I have gotten my amex to 5k, so I just pay that off as soon as a balance is noted.. I plan to see if amex will just switch my delta gold to the blue cash card.

By the way i know a part of the fico score is credit utilization, does this mean just the revolving credit or credit on a specific card too? Is it okay to run my amex with a 5k limit near the limit and pay it off a day or two after it runs it up to that point, or will that affect my score too?

And if the experian isnt a score why does Amex pull that credit beaurau score?

Thanks for the advice everyone!!

Message Edited by gl4662 on 01-31-2010 08:41 PM

Message Edited by gl4662 on 01-31-2010 08:42 PM

Re: FICO score: how long does it take to increase?

Cstl05 — Mon, 01 Feb 2010 05:01:58 GMT

Also, would it be okay for me to contact Amex for an App Reconsideration if I do not change my current amex over?

Re: FICO score: how long does it take to increase?

Jazzzy — Mon, 01 Feb 2010 14:39:45 GMT

@gl4662 wrote:
Thank you very much for the replys. I plan to do just that (cooldown). I found out my citi AA was a no pre set limit card, so I have changed that over to their cashreturns card which has a set limit.

The reason for getting a CLI increase is that with 50k revolving credit I usualy spend 10 grand a month.. Which is hard to do with a 2k limit on one card, but I have gotten my amex to 5k, so I just pay that off as soon as a balance is noted.. You know...it really doesn't matter how much you spend each month or what your limits are. Just go online every so often and pay it off. It's not unusual at our house to make 2-3 payments on our cards each month. That way we get the rewards, but we keep our balances low. I started with a $2k limit on my AmEx, and I was in the middle of helping my daughter plan her wedding. I paid that thing off like clockwork, and then eventually got a CLI.

I plan to see if amex will just switch my delta gold to the blue cash card. That's not a bad idea.

By the way i know a part of the fico score is credit utilization, does this mean just the revolving credit or credit on a specific card too? I believe that utilization gives heavier weight to total utilization, but specific cards matter, too. Remember, though, that this "utilization" is counted only by what shows up on the statement. You not only have to control debt, you have to control how it is reported. Spend all you want...just don't let much of it report.

Is it okay to run my amex with a 5k limit near the limit and pay it off a day or two after it runs it up to that point, or will that affect my score too? If you pay it off before the statement cuts, it shouldn't affect your scores.

And if the experian isnt a score why does Amex pull that credit beaurau score? Experian is one of the 3 CRAs, and it does have a FICO score. Experian won't let consumers buy their FICO scores, however.

Thanks for the advice everyone!!

Re: FICO score: how long does it take to increase?

Jazzzy — Mon, 01 Feb 2010 14:42:47 GMT

@gl4662 wrote:
Also, would it be okay for me to contact Amex for an App Reconsideration if I do not change my current amex over?

You are certainly welcome to ask AmEx for a reconsideration. Arm yourself with information based on the reasons they gave you for decline. Be aware that you may get another hard inquiry.

I successfully got a recon from Discover last fall. My advice would be to be nice, nice, nice. Don't argue. State your case in a dignified, competent manner.

Re: FICO score: how long does it take to increase?

Cstl05 — Mon, 01 Feb 2010 18:05:28 GMT

So Amex put in a recon for me, should know within 24-48 hours. I also called chase for their freedom card that I wanted to recon, and I was able to get it at the cost of me canceling my amazon which has been open for 2 years, but honestly could use the freedom more for its benefits. How long will this effect my credit score? Did I do any significant damage by closing my amazon with them?

Also, Eq shows my oldest account to be 18 years old, and that is what my bank told me, but that is just as an authorized user, I did not know they do not take that in to account. Or does that vary for different CCC's? So actually my oldest account would be 2 years old if AU's are not taken into consideration, but it must be a CCC policy, because my Eq doesnt show that?

Thanks..

Re: FICO score: how long does it take to increase?

Anonymous — Tue, 02 Feb 2010 04:07:39 GMT

So folks,

I just got a new card,my only one in 7yrs,not by choice.lol Its a $1000 limit, havent recieved my first bill yet. Am I to understand that I should pay any balance charged to the account PRIOR to getting my bill?

I cant do that obviously this month since I dont know where my bills are going or what the cut date is but I charged $250 to the card and thought if I paid the bill in full I was ok on my utilization. But now Im reading and it sounds like I need to pay it before the bill is sent to me,is this correct? I have a visa Thank you