topic Re: Expect an increase? in Understanding FICO® Scoring

Expect an increase?

refine4you — Mon, 25 Oct 2010 15:31:41 GMT

I just got approved for three credit cards, I previously had no rev accts and some derogs. Should I expect an increase in my scores?

TU-624 EQ-569

Re: Expect an increase?

llecs — Mon, 25 Oct 2010 15:33:23 GMT

OP, I split your post to form a new one here. I had to edit the title, but changed nothing else. If you'd like to change the title, click "Options" and then "Edit Message".

On the topic of an increase, I bet you'd see one assuming you have no open CCs, LOCs, HELOCs, or any baddie CCs reporting a balance. You are lacking a good mix without any CCs and adding the first couple will result in a decent increase. The third, not so much. Congrats!

Re: How many point increase should I expect?

Anonymous — Mon, 25 Oct 2010 15:30:18 GMT

@refine4you wrote:

I just got approved for three credit cards, I previously had no rev accts and some derogs. Should I expect an increase in my scores?

TU-624 EQ-569

Hello and welcome to myFICO.

Generally adding credit cards to your file can be a good thing but much depends on what kind of derogs you currently have on your reports. Are you talking about late payments, charge offs, collections, etc.?

Also may I ask where you bought your scores?

Re: Expect an increase?

Anonymous — Mon, 25 Oct 2010 15:38:01 GMT

Any prediction would be loosey-goosey.

Here's a few things that will impact your scores, as you've described your situation:

Your derogs, if they're still reporting, will still have an impact.

When you open your first revolving account, you will see a score increase. FICO wants to see that mix. If you make that revolving account a bank/national cc card, you will see an additional score increase, as FICO likes to see at least one of those.

The additional cards will have the impact of additional inquiries, and reduced AAofA; depending on your specific situation you may or may not see a score decrease based on those.

When your accounts report, they may report with or without a balance. That will also impact your FICO score.

Congrats on adding a revolving account (or two or three) to your reports. Good accounts can serve you well.

Remember that FICO likes to see no reported balances on all but one card, and that reported balance at less than 9% - which ideally is PIF'd. And some experts consider CC debt as toxic debt - you can use your cards without carrying balances and without paying interest.

Best wishes!

Re: Expect an increase?

refine4you — Mon, 25 Oct 2010 16:17:20 GMT

Thanks!

Re: How many point increase should I expect?

refine4you — Mon, 25 Oct 2010 23:22:04 GMT

Most derogs are over two years old. Brought score from FICO.

Re: How many point increase should I expect?

Anonymous — Tue, 26 Oct 2010 03:05:13 GMT

@refine4you wrote:

Most derogs are over two years old. Brought score from FICO.

Much depends on what kind they are. A single 30 day late that is 2 years old is not much concern but a major derogatory can hurt for years.

From a BK years ago to:
EX - 9/09 pulled by lender 802
EQ - 7/06-663, 3/10-800, 10/10-813
TU - 10/10-774
You can do the same thing with hard work