What can I expect of my scores?

[Anonymous]

I am new to credit and fairly new to MyFico. So last month when I found out that I am pregnant I knew that a new baby would be expensive and I needed a retail card or cc to help me. The problem was,being that I had NO credit at ALL then it was hard for me to get credit to start. Needless to say, I went crazy... apping anywhere I went and to whatever online that said "apply now"!!! I applied for at least 25 things in the last 4 weeks> OUCH!! I didnt know that that could hurt my score when I get one, or will it? See being that I dont have a score nor a credit history will all those inquires hurt what I dont yet have? And out of all those apps that I did I was approved for>

Orchard Bank 500.00

Bloomingdales>200.00

Macys>100.00

CitiDrivers Edge>500.00

Chase BP visa>1000.00

CitiPlatinum Select>500.00

... I was denied more than I was approved.

I was denied for the bank of america card and the capitol one card which were my first apps. I thought they would help me but I guess not. I tried to order my fico scores but obviously I cant because I have NONE. I have been reading alot of these forums and I know that inquiries hurt but will they still hurt even though I had no score or history? Also, when I do finally get a score, what can I expect it to look like?  I know now that I went WAYY overboard on the whole inquiry thing but it was too tempting and I needed SOMETHING!!! I will not be applying for anything else until Christmas 2009!! and that is a maybe! I know that I need to just be content with the cards that I were approved for and focus on paying those on time and letting them age. YES I KNOW THIS..... What I want to know though is really what can I expect to see when I do get a score.... My goal is to be at at least high 600's by the new year... Is that possible? Do you think I can do it or did I ruin that with all the inquiries already?

[Anonymous]

I've got good news and bad news for you, Denetra.

The bad news is that your scores will probably start out low, because of all the inquiries you racked up to get those cards and your short age of accounts.

The good news is that, after a few months, your scores should rise rather quickly, provided you keep balances low and pay on time. I wouldn't be surprised to see you start off at 525 or so, but toward the end of the year, start going up 15 to 20 points a month until you hit 675 or so, then keep rising 10 to 15 points or so until you're in the 700 club by the end of next year. You've got several revolving accounts to help haul you up.

Just don't screw it up with a late-pay...

[Anonymous]

I guess that I have to live with that although I was hoping for somewhere in the 600's to start me off. I will be sure to pay those on time, every time, and keep utilization low. But I am glad to know that there is a possibility that my score can go up 15-20 points a month afterwards! So, if I dont app again and pay on time do you think that in, say, a year, that I can be in the 700 club? Wow, I thought that I had to have credit for years in order to be in that club! Well I cant wait to get a score so I can watch it rise, rise, rise! Good thing is that I am in college and I dont have any loans so I dont have that to worry about as I see a lot of credit starters have this as a issue.

[Anonymous]

Your score can rise that fast if you avoid ever making a late payment, maxing out a credit card, keeping low utilization, and never having a collection against you because you are graded on a curve with consumers with a similar credit profile. You will start out in a new to credit category and as long as you handle it well you will be graded on the good side of the curve. Over time you will move to new categories of consumers and your score will have the potential to rise even higher.

Goodluck and enjoy your new cards responsibly

[Anonymous]

Thanks! I will try to maintain a low balance and pay on time, every time. I am in a fairly ok financial situation so paying on time and keeping utilization low should not be an issue. I cant wait to see a score of 700+. That would be awesome but I know that will come in time if I use what I learn here and common sense. Thanks for all the advice that you guys give here. You guys are credit savvy!

[RobertEG]

Hi denetra.

Since you are in a credit building mode, I would not be to fixed on my monthly %util.  Account %util is merely a monthly snapshot, and has no history or memory next month.

Yeah, you went on an application spree, with many inquiries.  But inquiries only affect your score for one year, then they no longer have any scoring impact.  You have established a revolving mix of store and bank cards, and that is good.

Just make SURE that you NEVER have a late payment, and you are well on your way to establishing a sound credit score. 

Expect a sucky score when you first pull, but dont be too discouraged.  The multiple inquiries are a red flag, but will go away in a year.