How long does it take your score to recover from adding new credit cards?

[Anonymous]

I added him to my Old Navy and Kohls cards a couple months ago.  I don't know why they haven't shown up on his credit report yet.  Maybe because I haven't purchased anything there in a while?  I don't know why I didn't add him to one of my major cards.  I'll do that too.

[Anonymous]

Thanks!  Yes, I'm very proud and very addicted to this stuff! 

[vanillabean]

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@Anonymous wrote:

I added him to my Old Navy and Kohls cards a couple months ago.  I don't know why they haven't shown up on his credit report yet.  Maybe because I haven't purchased anything there in a while?  I don't know why I didn't add him to one of my major cards.  I'll do that too.

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Yes, credit companies generally don't report card balances to the agencies unless there's activity. It should be noted that if you zero the balance before the statement date, it'll still get reported, except for Amex I think.

[MarineVietVet]

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@Anonymous wrote:

 

Negatives will report for 10 years even after they have been taken care of. So the BK from 2004 should drop off the reports in 2014, etc. The only thing you can do, unfortunately, is wait for this to happen. It's commendable though that you are taking the right steps to correct his credit! 

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Could you clarify this a little bit? The only negative I know of that reports for 10 years is Chapter 7 bankruptcy.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[Anonymous]

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@MarineVietVet wrote:

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@Anonymous wrote:

 

Negatives will report for 10 years even after they have been taken care of. So the BK from 2004 should drop off the reports in 2014, etc. The only thing you can do, unfortunately, is wait for this to happen. It's commendable though that you are taking the right steps to correct his credit! 

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Could you clarify this a little bit? The only negative I know of that reports for 10 years is Chapter 7 bankruptcy.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

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Thanks for clarifying, I was referring to BK and tax liens when I stated 10 years - negatives the OP mentioned. I believe most other negatives are 7 years?

[MarineVietVet]

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@Anonymous wrote:

Thanks for clarifying, I was referring to BK and tax liens when I stated 10 years - negatives the OP mentioned. I believe most other negatives are 7 years?

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According to FCRA 605(a)(3) paid tax liens can report for no longer than 7 years.

Requirements relating to information contained in consumer reports

(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.

(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.

But then FCRA 605(c) throws in this bit of confusion which to many people (including myself) says that collections and charge offs can report for up 7.5 years.

(c) Running of Reporting Period

(1) In general. The 7-year period referred to in paragraphs (4) and (6) 3 of subsection

(a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

[Anonymous]

Whoa!  I just got a FICO alert re Rob's score jumping up from 601 to 685!  This score jump coincides with their records reflecting the released liens and paid off child support.  (The scores I mentioned previously were all Equifax).  

Now that' s more like it.    Hopefully it will continue to rise over the next few months, as you all predicted.  

[Anonymous]

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@MarineVietVet wrote:

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@Anonymous wrote:

Thanks for clarifying, I was referring to BK and tax liens when I stated 10 years - negatives the OP mentioned. I believe most other negatives are 7 years?

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According to FCRA 605(a)(3) paid tax liens can report for no longer than 7 years.

Requirements relating to information contained in consumer reports

(a) Information excluded from consumer reports. Except as authorized under subsection (b) of this section, no consumer reporting agency may make any consumer report containing any of the following items of information:

(1) Cases under title 11 [United States Code] or under the Bankruptcy Act that, from the date of entry of the order for relief or the date of adjudication, as the case may be, antedate the report by more than 10 years.

(2) Civil suits, civil judgments, and records of arrest that from date of entry, antedate the report by more than seven years or until the governing statute of limitations has expired, whichever is the longer period.

(3) Paid tax liens which, from date of payment, antedate the report by more than seven years.

(4) Accounts placed for collection or charged to profit and loss which antedate the report by more than seven years.

(5) Any other adverse item of information, other than records of convictions of crimes which antedates the report by more than seven years.

But then FCRA 605(c) throws in this bit of confusion which to many people (including myself) says that collections and charge offs can report for up 7.5 years.

(c) Running of Reporting Period

(1) In general. The 7-year period referred to in paragraphs (4) and (6) 3 of subsection

(a) shall begin, with respect to any delinquent account that is placed for collection (internally or by referral to a third party, whichever is earlier), charged to profit and loss, or subjected to any similar action, upon the expiration of the 180-day period beginning on the date of the commencement of the delinquency which immediately preceded the collection activity, charge to profit and loss, or similar action.

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Good to know, thanks for correcting me!

[Anonymous]

This is the sort of question that is impossible to answer without knowing the specifics.

Someone pointed out that a new account boosted their score.Same thing happened to me - 2 months ago I had NO credit cards and I was finding that no matter what I did, my score just wouldn't go any higher. In my report it mentioned that one of the things holding the score down was the fact I did not have revolving credit.

That is honestly what drove me to apply for it. In the last two months I've added 5 credit cards as you can see in my signature. Before I app'd for any of them my scores were 750 and 756. With the inquires and new accounts and all, my scores are actually higher rather than the decrease we've all been conditioned to expect. Why? Most likely because I just didn't have any revolving credit before and having and using it gave me more points than the inquiries cost me, that's the best I can come up with.

But as you see, you can't give an answer that works for everyone, because everyone has a different situation.

[Anonymous]

Yes, I know you're right.  In Rob's case, I'm sure it will help his score in the long run, because he had absolutely no revolving debt and no recent positive credit history.  I know opening the cards was the right thing to do, but I also know that it will take awhile of using them responsibly for it to really pay off for him.