Should I reject Capital One?

[Anonymous]

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@jmbfl wrote:

TL's with CL $5K do not hurt you FICO scores in any way. That is misinformation. The only way FICO scoring takes your CL's into account is in calculating UTIL.

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If this is true, the FiCO Simulator on this dubious myfico page must be plain wrong .

[jmbfl]

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@Anonymous wrote:

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@jmbfl wrote:

TL's with CL $5K do not hurt you FICO scores in any way. That is misinformation. The only way FICO scoring takes your CL's into account is in calculating UTIL.

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If this is true, the FiCO Simulator on this dubious myfico page must be plain wrong .

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It's UTIL Ulan.

[Anonymous]

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@jmbfl wrote:

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@Anonymous wrote:

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@jmbfl wrote:

TL's with CL $5K do not hurt you FICO scores in any way. That is misinformation. The only way FICO scoring takes your CL's into account is in calculating UTIL.

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If this is true, the FiCO Simulator on this dubious myfico page must be plain wrong .

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It's UTIL Ulan.

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Did you try the FiCO Simulator? Add a new tradeline. Try CL values below $5000, then try CL values $5000 and above (with a good FiCO). Then tell me the same again.

Message Edited by Ulan on 09-17-2008 11:22 PM

[Anonymous]

JMFBL, what is an MR?  I tried looking it up.

[score_building]

MR= Manual Review

[jmbfl]

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Ulan wrote:
Did you try the FiCO Simulator? Add a new tradeline. Try CL values below $5000, then try CL values $5000 and above (with a good FiCO). Then tell me the same again.

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Just to humor you, Ulan, I did this and it made absoutely no difference. And I have a plenty good FICO.

1) I would take what the calculators/simulators tell you with a grain of salt.

2) It's UTIL plain and simple.

That being said many issuers will set their CL for you based on what they see others have given you. So having higher TL's on the books may help you get more from others. But that is nor score related.

[Anonymous]

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@Anonymous wrote:

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@jmbfl wrote:

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@Anonymous wrote:

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@jmbfl wrote:

TL's with CL $5K do not hurt you FICO scores in any way. That is misinformation. The only way FICO scoring takes your CL's into account is in calculating UTIL.

---

If this is true, the FiCO Simulator on this dubious myfico page must be plain wrong .

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It's UTIL Ulan.

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Did you try the FiCO Simulator? Add a new tradeline. Try CL values below $5000, then try CL values $5000 and above (with a good FiCO). Then tell me the same again.

Message Edited by Ulan on 09-17-2008 11:22 PM

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Sounds like when you simulated opening a new account with a CL of less than $5000, that didn't increase your overall CLs enough for the reduced utilization to have any effect on your score (or, not enough of an effect on your score for it to cancel out the ding due to a new inquiry and a new tradeline reducing your average age of accounts). Then when you tried it with a new CL of more than $5000, that hypothetical $5000 would reduce your overall utilization enough to give you a nice score bump.

It won't work like that for everyone. Particularly the OP who already has zero reported utilization. CLs of individual cards have no effect on your FICOs, it's the effect your CLs have on your utilization that matter scoring-wise.

[haulingthescoreup]

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@Anonymous wrote:

Sounds like when you simulated opening a new account with a CL of less than $5000, that didn't increase your overall CLs enough for the reduced utilization to have any effect on your score (or, not enough of an effect on your score for it to cancel out the ding due to a new inquiry and a new tradeline reducing your average age of accounts). Then when you tried it with a new CL of more than $5000, that hypothetical $5000 would reduce your overall utilization enough to give you a nice score bump.

It won't work like that for everyone. Particularly the OP who already has zero reported utilization. CLs of individual cards have no effect on your FICOs, it's the effect your CLs have on your utilization that matter scoring-wise.

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Great clarification!

[Anonymous]

Okay, sorry guys, point ceded.

I just looked over the numbers, and it was the point that my utilization crossed the 5% threshold that seemed to negate the new account ding. That's an impressive effect of just 2.5% difference.

[jmbfl]

When I simulated that change my UTIL was starting at 8%. There is nothing to be gained there for me. When I go through any simulator activity there is nothing I can do to improve my scores excluding continuing a perfect payment record over time and letting my accounts age.