topic Re: Applying for additional credit in General Credit Topics

Applying for additional credit

CreditBob — Mon, 18 Jun 2007 09:57:07 GMT

Once you have applied for credit, whether or not you get approved or turned down, wait another 12 months at least if you can. The credit bureaus computer sytem looks at what you have applied for or done in the last twleve months. If you know you are possibly going to get turned down then apply for a secured credit card. If you are new to credit then go ahead and apply for a up 3 accounts. The reason code will not be a factor after 12 months and the inquiries will fall off after two years

Re: Applying for additional credit

Tuscani — Mon, 18 Jun 2007 14:00:01 GMT

There really is no set rule on how long you should wait.. While FICO counts all Inqs within a 12 month period the same, each lender has its own policy regarding what is and isn't considered too many. I know several people who can still consistenly get approved with dozens of recent Inqs on their reports.

Re: Applying for additional credit

Anonymous — Mon, 18 Jun 2007 14:07:50 GMT

I am also confused about how the inquiries effect your score. I applied for new credit earlier this year and did not notice any change in my scores. I recently applied for credit last week, and I guess I'll see how it effects my score next month. My guess is not much, but some people here are very concerned about inquiries and I have yet to discover why

Re: Applying for additional credit

Tuscani — Mon, 18 Jun 2007 14:13:10 GMT

rifleman wrote:
I am also confused about how the inquiries effect your score. I applied for new credit earlier this year and did not notice any change in my scores. I recently applied for credit last week, and I guess I'll see how it effects my score next month. My guess is not much, but some people here are very concerned about inquiries and I have yet to discover why

It depends on your overall credit picture. Obviously a thicker file will have less of an impact than someone who is just starting to build credit.

Re: Applying for additional credit

Anonymous — Mon, 18 Jun 2007 14:23:09 GMT

It depends on your overall credit picture. Obviously a thicker file will have less of an impact than someone who is just starting to build credit.

by "thicker file" do you mean Longer history? Or does thicker file mean lots of revolving acounts, installment loans, perhaps a mortgage, and other credit?

Re: Applying for additional credit

Tuscani — Mon, 18 Jun 2007 14:28:52 GMT

rifleman wrote:

It depends on your overall credit picture. Obviously a thicker file will have less of an impact than someone who is just starting to build credit.

by "thicker file" do you mean Longer history? Or does thicker file mean lots of revolving acounts, installment loans, perhaps a mortgage, and other credit?

Thicker simple means more TLs. The current number of Inqs will matter as well. If you already have 50 Inqs.. One more probably won't matter much.

Message Edited by Tuscani on 06-18-2007 09:28 AM

Re: Applying for additional credit

Anonymous — Mon, 18 Jun 2007 14:33:17 GMT

@Tuscani wrote:

@Anonymous wrote:

It depends on your overall credit picture. Obviously a thicker file will have less of an impact than someone who is just starting to build credit.

by "thicker file" do you mean Longer history? Or does thicker file mean lots of revolving acounts, installment loans, perhaps a mortgage, and other credit?

Thicker simple means more TLs. The current number of Inqs will matter as well. If you already have 50 Inqs.. One more probably won't matter much.

Message Edited by Tuscani on 06-18-2007 09:28 AM

Yes, and I suppose it's good to have a healthy number of trade lines--what would you say is a good amount of trade lines to have in the "revolving credit" catagorey? 5 cards? 7 cards? 3 cards? Assuming you manage them all responsibly and stay below 9% utilization

Re: Applying for additional credit

Tuscani — Mon, 18 Jun 2007 14:36:36 GMT

Yes, and I suppose it's good to have a healthy number of trade lines--what would you say is a good amount of trade lines to have in the "revolving credit" catagorey? 5 cards? 7 cards? 3 cards? Assuming you manage them all responsibly and stay below 9% utilization

IMO, mix is more important than number.

Re: Applying for additional credit

Anonymous — Mon, 18 Jun 2007 14:42:20 GMT

What in revolving credit constitutes a mix of credit? A master card, a Visa, an AMex, a store card, and Airline card?

Re: Applying for additional credit

Tuscani — Mon, 18 Jun 2007 15:01:19 GMT

As far as credit cards go.. I believe the only difference is bank card and store card.

Whether or not it's Visa, MasterCard, Charge, Airline, ect. is irrelevant.

Message Edited by Tuscani on 06-18-2007 10:01 AM