Help! I think I opened too many cards......

[Anonymous]

Congrats on your new home!!!

You and I are similar as I closed on my newly built house on 7/31 as well!  All this year was spent trying to get the highest score I could get for the mortgage. I couldn't wait for the moments after I was handed over the keys to be able to app for some good cards! Now I learned a little while ago that I was done getting store cards so I only wanted major bank cards. I got approved for 3 the night of my closing (2 amex and a Cap One). At this point I have way too many inq's to do anything else. 

If I were you, I'd just let time pass and you'll see your scores rebound.

[K-in-Boston]

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@Anonymous wrote:

A couple of questions and comments for the OP here.

First, what are your FICO scores?  You mentioned "good" credit, so that sounds like you're looking at a chart or something provided by a CMS that uses some fluff software.  Knowing where your FICO score stand is very important.  One thing that's concerning to me and one of the reasons I ask what your scores are is that your approval limits overall were very low.  This is usually indicative of a weak file, but lots of different things can make a file weak.  High utilization, negative items, a thin file, a young file, low income, etc.  Any one or more of these factors (among others) can cause your profile to be weak enough to register tiny limit approvals or denials.

One thing I would definitely caution you on is obtaining so many "store" cards rather than major bank cards.  Store cards are typically easier to get approved for, but they generally aren't all too useful since they can only be used in one place.  It looks like you received denials when applying for major bank cards (Chase, Amex) which is a strong indicator that you need to slow down on the apps and lay off the store cards going forward IMO. 

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+1

Also, OP, if you didn't previously have an open installment loan you may actually find that your scores will get a nice boost when the mortgage begins to report.  Join us over in The Garden Club, let those accounts age, and you'll likely be in significantly better shape.

[Anonymous]

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@Anonymous wrote:

A couple of questions and comments for the OP here.

First, what are your FICO scores?  You mentioned "good" credit, so that sounds like you're looking at a chart or something provided by a CMS that uses some fluff software.  Knowing where your FICO score stand is very important.  One thing that's concerning to me and one of the reasons I ask what your scores are is that your approval limits overall were very low.  This is usually indicative of a weak file, but lots of different things can make a file weak.  High utilization, negative items, a thin file, a young file, low income, etc.  Any one or more of these factors (among others) can cause your profile to be weak enough to register tiny limit approvals or denials.

One thing I would definitely caution you on is obtaining so many "store" cards rather than major bank cards.  Store cards are typically easier to get approved for, but they generally aren't all too useful since they can only be used in one place.  It looks like you received denials when applying for major bank cards (Chase, Amex) which is a strong indicator that you need to slow down on the apps and lay off the store cards going forward IMO. 

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So between May-July all 3 FICOs were in the 730-740s. As of today EX has me at 696 and TU at 680...EQ is probably in the same range but the lowest.I guess you could say that my overall credit profile is "weak & thin" given the fact that all but 2 of my existing tradlines were opened in the last 6 months. My oldest acct is 1 yr 4 months, and since all of these new accts, my AAoA is a sad 5 months...

High utilization would not really apply. I was not using any credit cards during escrow and existing balances were low.  

You're right, going forward (probably in a year or 2) I want to try again for Chase or Amex...so hopefully by then I'll have a much stronger profile...

[Anonymous]

I wouldn't say your profile was weak and thin, but it was definitely young and thin.  The good news is that it's no longer "thin" with the addition of all of your new accounts, as anything over 3-4 accounts is no longer considered a "thin" file.  Your file is definitely still young though, as your AoYA is 0 months, AAoA is 5 months and your AoOA is 16 or so months.  If you don't app for anything for the next year, you can add 12 months to all of those numbers above... AoYA of 12 months, AAoA of 17 months and AoOA of 28 months is far more solid.  You'd see around a 50 point score boost, maybe even a little more just from the aging of those factors.  That puts you right back in the 730-740 score mix. 

[Anonymous]

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@Anonymous wrote:

Congrats on your new home!!!

You and I are similar as I closed on my newly built house on 7/31 as well!  All this year was spent trying to get the highest score I could get for the mortgage. I couldn't wait for the moments after I was handed over the keys to be able to app for some good cards! Now I learned a little while ago that I was done getting store cards so I only wanted major bank cards. I got approved for 3 the night of my closing (2 amex and a Cap One). At this point I have way too many inq's to do anything else. 

If I were you, I'd just let time pass and you'll see your scores rebound.

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Ugh well I guess you live and you learn..... I was just too caught up in the moment...

But at least now I can set "goal" cards that I know I would want to acquire in the future. 

PS my inquiries are killing me too...can't wait for those suckers to fall off....

[Anonymous]

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@Anonymous wrote:

I wouldn't say your profile was weak and thin, but it was definitely young and thin.  The good news is that it's no longer "thin" with the addition of all of your new accounts, as anything over 3-4 accounts is no longer considered a "thin" file.  Your file is definitely still young though, as your AoYA is 0 months, AAoA is 5 months and your AoOA is 16 or so months.  If you don't app for anything for the next year, you can add 12 months to all of those numbers above... AoYA of 12 months, AAoA of 17 months and AoOA of 28 months is far more solid.  You'd see around a 50 point score boost, maybe even a little more just from the aging of those factors.  That puts you right back in the 730-740 score mix. 

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Yes!! For now I will be joining the garden & I plan on keeping out of the approvals board as much as possible lol 

Thank you so much for all the info....much appreciated!!! 

[Anonymous]

@Yaya2772 I have a lot of mortgage inq’s when I was shopping rates. Funny thing is, they were all in the same period where they didn’t affect my score but if I app’ed for a card right now, they’d definitely say I had way too many in the last 6 months. Oh well, gardening isn’t so bad.

[Anonymous]

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@Anonymous wrote:

We closed escrow on our home on July 31st and knew we were going to obtain new cards for home improvement and furnishings.

It started out innocently enough, I applied for Target ($300 SL) & Home Depot ($1000 SL), both which were approved. 

During this time my husband applied for Walmart MC ($500 SL) and was also approved and I was added on as AU. 

I should have just stopped there but noooo. I guess the excitement of being a new homeowner and actually being able to apply for credit with a "good" credit score got the best of me....(we had previously worked super hard to raise scores to qualify for mortgage)

Since then I've also obtained the following:

Mor Furniture ($5500 SL)

TJX Rewards ($400 SL) 

Kohls ($300 SL)

Ulta ($1000 SL)

I also applied for the Chase Disney Visa, Hobby Lobby (US Bank) & AMEX.....all which were declined. 

I guess I am starting to see the consequences of all these new accts and inquiries....

I know for a fact TU & EX FICOs have taken at least a 40 point drop since we closed escrow, with EQ probably not far behind. 

Did I make a huge mistake by obtaining all of these cards at once?? 

My mortgage is not even showing on my credit report yet...should I expect another point drop when it does??

I am currently open to all comments and suggestions on what my course of action should be. 

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Although you applied for too many cards in too little of a timeframe (as other have already stated), think of it this way: You got all of your applications out of the way now and they will all fall off of your report around the same time. Ideally you'll want to wait 2 years before opening up another account, however, if you needed anything additional you could apply again with good approval odds next year.

Take it as a learning experience. It isn't permanent damage!