topic Re: New Credit- Fico decreased 45 pts. in General Credit Topics

New Credit- Fico decreased 45 pts.

Anonymous — Thu, 03 Jan 2008 19:11:16 GMT

I reactivated an old credit card with only a small credit line and my FICO score decreased 45 pts. The same month my Mastercard limit increased from 15,000 to 19,200 and no change in Fico score. What is this crap!!!!!!

Re: New Credit- Fico decreased 45 pts.

SmartCookie — Thu, 03 Jan 2008 19:14:56 GMT

Something is missing from the picture. Did you have an extreme increase in any UTI or a large number of hard INQs?

Re: New Credit- Fico decreased 45 pts.

Anonymous — Thu, 03 Jan 2008 19:22:08 GMT

I always have alot of inquires ( 3-5 per month ) due to my company that I owe. Such as I got two inquires when we added started taking credit cards, one from Mastercard and one from AE

Re: New Credit- Fico decreased 45 pts.

SmartCookie — Thu, 03 Jan 2008 19:30:10 GMT

mt1415 wrote:
I always have alot of inquires ( 3-5 per month ) due to my company that I owe. Such as I got two inquires when we added started taking credit cards, one from Mastercard and one from AE

That is probably what tanked your scores. The more you get, the harder each new one hits. Hard INQs count against your FICOs for a full year though they will remain on your CBRs for 2 years. You might want to read the Business 101 thread and seperate your personal and business credit.

Re: New Credit- Fico decreased 45 pts.

SmartCookie — Thu, 03 Jan 2008 19:38:08 GMT

mt1415 wrote:
I always have alot of inquires ( 3-5 per month ) due to my company that I owe. Such as I got two inquires when we added started taking credit cards, one from Mastercard and one from AE

I thought owe was a typo and figured you meant own, right? Because if not... you are saying that some company is pulling your reports 3-5x/mo because you owe them? I'll assume I was correct and this was regarding your own business unless corrected.

Re: New Credit- Fico decreased 45 pts.

Anonymous — Thu, 03 Jan 2008 19:55:10 GMT

Sorry, Company that I own. Which has been expanding lately and adding more equipment and such. I am switching my big credit card, American express, from personal to business this month. I assumed that my big monthly balances on AE were hurting me, especially since it has no credit limit listed. TU 727 EXP 657 EQ 627

Re: New Credit- Fico decreased 45 pts.

SmartCookie — Thu, 03 Jan 2008 20:01:02 GMT

mt1415 wrote:
Sorry, Company that I own. Which has been expanding lately and adding more equipment and such. I am switching my big credit card, American express, from personal to business this month. I assumed that my big monthly balances on AE were hurting me, especially since it has no credit limit listed. TU 727 EXP 657 EQ 627

That's what I thought but then I wondered if I confused it.

Well you are on to another reason why your score took a hit... UTI. If not for adding that old card into the mix, you would have seen a steeper drop.

I would definitely seperate my credit if possible... business and personal. Hope you checked out that thread it's really really good.

Certain cards with AMEX report limits and others do not... you might find more information on the boards on that. It would be nice if they had a biz card that reported... but I am not familiar enough with them to say so without research.

An easy way to maximize UTI (other than keeping no more than 9% of CL reporting as a balance) is to do things like paying 2x per month, one smaller one before the payment is due and the other for the current balance before the closing date. Most cards report on the statement date (usually the day right after the closing date) but not all.

Re: New Credit- Fico decreased 45 pts.

llecs — Thu, 03 Jan 2008 21:17:31 GMT

mt1415 wrote:
I reactivated an old credit card with only a small credit line and my FICO score decreased 45 pts. The same month my Mastercard limit increased from 15,000 to 19,200 and no change in Fico score. What is this crap!!!!!!

Adding new accounts hurts as well. In the past 2 months, my scores have tanked over 40 points on avg. just because I added 2 new CCs. Everything else on my reports were fine. Baddies dropped off, balances were very low, and so on.

Your score will recover when your accounts age.