@RobertEG wrote:
New cards can cost you up to 10pts each for the hard pull inquiry, which stays, with some reduction, as a neg for one year. Yes, you get in increase in CL, and it may also improve your credit mix, but these increases are usually much less than the hit for the inquiries needed to get the new cards. Additionally, if you run a balance on these new cards that exceeds 10% or more, that will also hurt. On the whole, I dont see getting new cards as an effective short term way to improve credit score.
I don't really understand the relevance of anything you're saying. OP wasn't asking about the effectiveness of improving credit scores with new cards. Bottom line is that adding new accounts and taking a possible hit on the FICO is a necessary evil for credit building.
As for your utilization comment, that doesn't just apply to new accounts, that also applies to older accounts as well.
Your comment "but these increases are usually much less than the hit for the inquiries needed to get the new cards." has me completely baffled. CLIs can lead to lower utilization which can lead to a higher FICO. Also a hit isn't always necessary for a CLI - assuming you're talking about another hard inquiry. I've gotten 6 CLIs in the last 3 months and 1 hard inq.
Message Edited by db23 on
08-25-2007 10:34 PM
