How will new credit effect my score, and for how long?

[Anonymous]

I started with a 638, paid all credit cards down to zero (about $30K) and my score went up to 721 within 2 months. I was happy wth that.

So I replaced my car with an $8K balance with a new leased car and applied for 2 new credit cards. I was approved for both-- an AMEX for $3700 and I just heard today that I was approved for another card with a $25K limit.

I assume the short term result will be a score drop, even if I don't use any of the cards beyond the "charge something little and pay it immediately" recommendation (and I do not think I will need to do so.)

But I am also guessing that the new cards with their pristine credit lines will have a long term effect of increasing my score. Yes? How long should this take, again assuming no new credit usage or any other new negatives?  And how much should it increase?

[fused]

New CC accounts with a new inq might have a negative affect on your scores for 6-12 months. Some see decreases in scores, some increases and others not much change with a new account and an inq. If your score was 721 before you applied, I suspect you will see some drop. How much, nobody really knows. High credit limits can help lower your util. Floating a balance on these cards of 1-9% util might give you a few more FICO points too.

[Anonymous]

what happened to me this week may say it all....

last Thursday, i got a signature line offer, and i applied and got 10k limit but took no money yet.

over the weekend, i was regretting (was going to call and have new LOC closed) the new credit because i just got my mid-score from 651 to 711 over the last few months....figuring the new credit would cause my score to go down.

yesterday, i get an equifax alert that the new LOC reported and my score went up to 713, up 2 pts.

[Anonymous]

Congratulations you 2! And the good news keeps pouring in.

[fused]

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rrm wrote:

what happened to me this week may say it all....

last Thursday, i got a signature line offer, and i applied and got 10k limit but took no money yet.

over the weekend, i was regretting (was going to call and have new LOC closed) the new credit because i just got my mid-score from 651 to 711 over the last few months....figuring the new credit would cause my score to go down.

yesterday, i get an equifax alert that the new LOC reported and my score went up to 713, up 2 pts.

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This LOC, if reporting as revolving, must have really lowered your cumulative util%. Nice, very nice!