When does your credit actually improve after adding a new line of credit?

[Anonymous]

How long after getting a new revolving line of credit added to your score does it take to actually increase it? I opened a new line of credit with a 10k limit and even though it's listed I'm not seeing really any increase to my score (which is just over 600 and my total available is only around 2k before so it should make a hefty increase). 

[AllZero]

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@Anonymous wrote:

How long after getting a new revolving line of credit added to your score does it take to actually increase it? I opened a new line of credit with a 10k limit and even though it's listed I'm not seeing really any increase to my score (which is just over 600 and my total available is only around 2k before so it should make a hefty increase). 

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Depending on your credit profile, score card, etc, you many not see a score improvement for adding a new revolving account. e.g. if it has not reduced your utilization for crossing a scoring threshold.

If you have derogatories or delinquencies, I would recommend addressing those since they may be suppressing your scores.

I would recommend reading the below from Birdman7
General Scoring Primer and Version 8 Master Thread rev.5.17.20

[Anonymous]

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@Anonymous wrote:

How long after getting a new revolving line of credit added to your score does it take to actually increase it? I opened a new line of credit with a 10k limit and even though it's listed I'm not seeing really any increase to my score (which is just over 600 and my total available is only around 2k before so it should make a hefty increase). 

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Like the above poster mentioned, unless it decreased your revolving utilization (if you already have CCs), the only other time you would see an increase is if you had no credit cards at all. Having no revolving credit dings your scores and adding revolving credit would improve that situation and your scores would reflect that.

Otherwise, if your utilization was already low or did not cause your utilization to cross any thresholds, more credit does not mean better credit.

Also, even if your revolving utilization was high, adding more credit to lower overall utilization may help, but even having cards that are still maxxed out (individual utilization) will keep your scores down. So, still, more credit doesn't mean better credit.

So to answer your question, the score change would be immediate once the card is reported to the bureaus.

You specifically need to address what is holding your scores down. High utilization, collections, charge offs, repos, late payment marks, defaulted student loans, etc. There are some things that still may be out of your control to fix, but if you decide you want to share your baddies, perhaps we can help guide you with them and make a plan.

Good luck!

[Anonymous]

I have a ch7 bankruptcy that is about 1.5 years old (not much I can do about that). I have 2 active credit cards both have their utilization near-zero ($500 and $1k) and a shopping account with $200 that is also at zero. This new line is 10k and I don't have to use it, it just stays open as long as I keep the line open (there was a hefty one-time enrollment fee though).

I guess with the score simulation on CK I was expecting a more dramatic jump but as of now things only went up a few points which is kinda frustrating when the simulator showed a 50ish point increase. I'll keep working at it though!

[OmarGB9]

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@Anonymous wrote:

I have a ch7 bankruptcy that is about 1.5 years old (not much I can do about that). I have 2 active credit cards both have their utilization near-zero ($500 and $1k) and a shopping account with $200 that is also at zero. This new line is 10k and I don't have to use it, it just stays open as long as I keep the line open (there was a hefty one-time enrollment fee though).

I guess with the score simulation on CK I was expecting a more dramatic jump but as of now things only went up a few points which is kinda frustrating when the simulator showed a 50ish point increase. I'll keep working at it though!

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The BK will unfortunately hold you back for the full 10 years. Low utilization is good, just be sure it isn't zero. Always keep one bankcard with a small balance of less than 8.9% of the limit.

And never trust score simulators on any site. They're more for entertainment honestly.

[simplegirl]

Since credit karma uses vantage scores the simulator would just be adding points to your vantage score and would not be the same for your Fico 8 scores.