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Adding Credit Line - Helpful or Hurtful?

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KG
Valued Member

Adding Credit Line - Helpful or Hurtful?

Hi there:

I am trying to boost my credit scores to +700 on all three reports in the hope of qualifying for a good mortgage -sometime over this summer. Right now I am at TU 664, EX 658 and EQ 649. I had a poor history of paying on time for a few years which is still factoring into my score, but those 60 and 90 day lates should be dropping off in June this year, which will help once they drop off. I haven't had a 30 day payment in over 2.5 years.

 

I currently have two credit cards that both have stupidly high utilizations (another factor hurting my scores). I just paid one card off to 0 and I will pay the second card off in a week. My question is that I had to take out additional credit a couple of weeks ago. Normally, I'd be certain that this would hurt, but this new account actually increases my overall credit amount (currently my total lines on the two accounts is 800, the new credit card has a 12K limit) and adding this third card lowers my utilization considerably (from 93% utilization to 19.98% this week, then 3% in two weeks when I have 2 cards at 0 and one card is a tiny balance).

 

I am just curious to know what others might have as insight on this. If I go from 93% to 3% utilization, how much will that counter any bad that might reflect from opening a new credit card? And if I pay all my credit cards to 3% utilization, I wonder what kind of bounce will that do to my current scores.

 

Thanks very much!  

Message 1 of 4
3 REPLIES 3
lafishy
Regular Contributor

Re: Adding Credit Line - Helpful or Hurtful?

I wish I had the answer for you, but I don't. But, I have a question!!

Where'd you get the 12K line of credit with your scores at a time like this (with such strict CC standards in place)? A credit union?

I have scores in the high 600's and low 700s, and can't seem to get a card with a limit over $1K!!
TU Fako 640 (6/4/08), EXP FICO 605 (6/11/08), TU FICO 624 (7/3/08), EQ FICO 663 (6/9/08), EQ FICO 669 (8/18/08), EXP FICO 668 (8/18/08), TU FICO 663 (9/22/08),
EQ FICO 669 (10/6/08), EXP FICO 671 (10/6/08), TU FICO 714 (10/21/08)**TU FICO 3/27/09 736, EQ FICO 3/27/09 712**
Message 2 of 4
KG
Valued Member

Re: Adding Credit Line - Helpful or Hurtful?

Hi there...no problem. The credit is actually at a dept store, not thru a bank and I had a cosigner with excellent credit. I am paying that one off immediately, since its a joint account, but I am hopeful the limit will actually help pull my scores up a bit.
Message 3 of 4
ScoreBooster
Frequent Contributor

Re: Adding Credit Line - Helpful or Hurtful?

Going from 93% to 3% might already get you where you want to be!

 

Just don't pay all three cards off. Having 2 cards paid off and the third at 1-3% of your total available CL is exactly what you need.

Message 4 of 4
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