What type of drop in scores can I expect?

akindofmagic · ‎05-02-2008

Hi all,

My Ficos as of April 15th were 745 TU, 783 EQ & 803 EXP. Then within the last week I applied for and was approved for Capital one health care financing ($4,000.00 loan 18 months interest free!) for invisalign braces, Honda Financing ($15,000 at 7.5%) for a previously enjoyed vehicle and a Discover More card with a $4,600 cl.

Prior to this my only trade line was cc's. Now I have an auto loan and another loan thru cap one which should have a positive effect (eventually) on my scores. My question is... how much of a hit can expect in the short term. I want to get a mortgage in about 2 years and with the current credit crunch I'm afraid I may not rebound in time. Especially since the average age of my cards are pretty young.

I have the following cc's and loans.

BAC 10,000 cl/owe $4,000

Chase 8,000 cl/owe $2,000

Wamu 10,000 cl/owe $750.00

Home Depot 2,000 cl/0.00

clothing boutique $700.00/owe $150.00

Any thoughts????? I know I need to stop seeking new credit now but I did still want to get an AMEX.

Message Edited by akindofmagic on 05-02-2008 12:38 PM

llecs · ‎05-02-2008

Depending on the age of your other accounts, maybe a 50-70 point drop. However, you'll get a large majority of those back within the next 6 months (85% I'm guessing).

Anonymous · ‎05-02-2008

Just requested CLI with Lowe's on a card I have had since 2005. They did a hard inquiry but raised my CL to 10K. What kind of drop in scores can I expect?

llecs · ‎05-02-2008

Minimal if any. IMO, any score hit would come from going 0 to 1 or 1 to 2 inquiries. Of the last 10 to a dozen inquiries, I haven't had any score hit or change. For sure on EX, in which there are 27, there haven't been any score change due to inquiries. Even on TU, where I went from 0 to 1 in March, there was no change.

I suspect most reported decreases came due to the new account reporting. Your avg. age drops from the new account causing your score to drop and also 10% of your score is New Credit.

Anonymous · ‎05-02-2008

You will gain slightly from improved mix.....though the Consumer Finance Loan should ding you slightly as well.

If your average length is not long already then the average age ding shouldn't be great.

You may even be rebucketed which might keep your score fairly high (with no baddies you might have an excellent record for someone with young and new credit).

Your scores should recover nicely in 2 years if the experiences of others on this forum are any lesson.

Anonymous · ‎05-02-2008

You also want to limit the Number of account with a balance-

and get a plan to reduce that debt-

akindofmagic wrote:

Hi all,

My Ficos as of April 15th were 745 TU, 783 EQ & 803 EXP. Then within the last week I applied for and was approved for Capital one health care financing ($4,000.00 loan 18 months interest free!) for invisalign braces, Honda Financing ($15,000 at 7.5%) for a previously enjoyed vehicle and a Discover More card with a $4,600 cl.

Prior to this my only trade line was cc's. Now I have an auto loan and another loan thru cap one which should have a positive effect (eventually) on my scores. My question is... how much of a hit can expect in the short term. I want to get a mortgage in about 2 years and with the current credit crunch I'm afraid I may not rebound in time. Especially since the average age of my cards are pretty young.

I have the following cc's and loans.

BAC 10,000 cl/owe $4,000

Chase 8,000 cl/owe $2,000

Wamu 10,000 cl/owe $750.00

Home Depot 2,000 cl/0.00

clothing boutique $700.00/owe $150.00

Any thoughts????? I know I need to stop seeking new credit now but I did still want to get an AMEX.

Message Edited by akindofmagic on 05-02-2008 12:38 PM