New card: How much will my credit score reduce?

Anonymous · ‎12-23-2007

Hello,

Does anyone here know by how much my credit score is likely to reduce if I apply for a new credit card? My FICO score is around 750, and I have no debts (though I am planning to take a home mortgage in the six months or so).

The reason for asking is that I've received a great offer to receive 25,000 free miles by applying for this new card. That number is enough to get me a round trip air ticket for which I otherwise would have paid $350. So I'm very tempted, but wanted to check how this will affect my credit score.

FWIW, I plan to cancel the credit card within a year (because there is an annual fee after that).

Thanks in advance.

Red1Blue · ‎12-23-2007

Why not wait till you buy the house and then approve for new cards?

Anonymous · ‎12-23-2007

Agreed - I would not make any changes util the home loan is approved and closed.

Besides paying revolving debt down- bot not to zero.

concorduser wrote:

Why not wait till you buy the house and then approve for new cards?

haulingthescoreup · ‎12-24-2007

Also, the higher your FICO's initially, the larger of a score hit you will typically take with the inq and new account. And mortgage lenders typically get a bit twitchy if a prospect has been seeking credit within 6 months of a mortgage app, although one card might not be that big a deal.

I used to read that 720 was as high a score as you needed to get the best home loan rates, all other things being equal. But these days, keeping that 750 might be pretty smart.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

Focus · ‎12-26-2007

Opening a new account took me from 777 to 744.

8-18-08 / EQ 791 - TU 795 - EX 815
9-4-08 / EQ 716 - TU ? - EX ?

haulingthescoreup · ‎12-26-2007

@Focus wrote:

Opening a new account took me from 777 to 744.

Whew! that's harsh.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

Focus · ‎12-26-2007

Yes it was, although I immediately went over 50% utilization upon opening the account (Levitz card furniture financing). The utilization was probably a big part of the hit. I just paid it off and closed the account since Levitz is going out of business, so I'm expecting 10-15 points to come back once the payment is reflected. We'll see...

8-18-08 / EQ 791 - TU 795 - EX 815
9-4-08 / EQ 716 - TU ? - EX ?

Kooliad · ‎12-26-2007

WOW sorry about that big hit. I think it will come back in 2 or 3 months

Anonymous · ‎12-26-2007

When I was in the mid 600's I gained pts, but when I hit 700 I lost 33 pts on my EQ(yikes!!)--I'm still waitin on the others. I know my hit was because of the buckets thing too--UUGGHH!!

Anonymous · ‎12-26-2007

i took 19pt hit for 1 inq. 761 to 742. unreal.