I applied for 6 new credit cards (after a serious raise in my FICO score and not applying for credit for more than 12 months anywhere) that resulted in 4 new inquiries on my EQ report. This was 2 weeks ago, and my FICO was not impacted at all by the inquiries. Today, the first of my new CCs reported with a $5k cl to EQ and my FICO dropped 8 points down from 703! I looked into the negative reasons affecting my score and it said because Iâ??ve been seeking too much credit the last 12 months! It also said my utilization was too high (60%). So my questions are: 1)Why did my score drop 8 points when it should have gone up because my utilization should have dropped from 60% to 30% by adding the new account? 2)Why did my FICO not drop when I had 4 inquiries within a week? 3)Why did my utilization not update from 60% to 30%? Iâ??m terrified now on what impact my FICO score will do after the other 5 CCs start reporting later this/next month!
Speaking as someone who is waiting for three new cards to show up on his report, here's a question for you: what does it matter? If you have 5 cards, it isn't as if you need to apply for anything else. I don't mean to be a smart@ss here, but I noticed I was a little peturbed about the potential effect myself, until I realized I had gone years without using any credit at all, and here I was worrying about a small, and temporary, drop in my scores. You just got six new credit cards, and have an otherwise clean report. Enjoy the moment!
Thanks Bunter. I am thankful. I didn't mean to sound like a whiner... The reason it doesn't make me happy is because I was planning to apply for a home loan in December and need every FICO point I can get. Just another FICO anomoly of what and when is the FICO effected by changes.
Hey Mike, congrats on the new cards! I am waiting on two new cards to post to reports as well and am a little worried about the score drop also as I plan on looking for mortgage/house in March. I really only should have applied for the one card but I couln't resist and I applied for 2, Citibank Platinum and the GM Card. Hopefully they won't do too much damage to either of us!
Hi Mike, We've seen some lags in between the time the new data reports and when it actually impacts the score. (Other times the impact is instant.) I haven't figured out the rhyme or reason on this. (Yeah, I know....RNG!) I would be shocked if you saw similar dips from each of your other new accounts. The good news is, if you have CW and pull every day, you should have all of the inqs bumped off before you apply for your mortgage, and that should give you some points back. Congrats on the new cards! That's a great result! DemPooches
you should be glad yours only droped 8 points, I had a 35 point drop! I got a First Premiere CC( I know, I know this card sucks but I need a CC TL and I can't get a prime card) but I didn't even have an INQ on my EQ and when the wooper 300 Limit w/ automatic $54 in startup fees showed up, 705 drops to 670!
Thanks kittie! I applied for the GM card as well and recieved a 14.74% rate with $4k cl. I immediately called and got the cl raised to $5k for transferring all those nasty high interest rates. I also tried the BDD with citiAA without knowing it was no longer working....or so I was told. Well, it did work and I have a citiAA gold and silver in the mail with acceptable cl. I was really bad about applying. I was so good for over a year that when I did apply, I couldn't stop. Congrats to you! Good luck applying for your home loan!
Thanks DemPooches. I was aware there was a lag in CE due to updating once a week on the weekend sometime, but I was unaware that there was such a lag with CW. When EQ updated my report it was instantaneous. I wonder if it applies a different calculation to whether or not you recieve the account that is associated with the inquiry, so thus waits to score based on that??? I hope you are right that when my other accounts report that my score won't be affected as drastically. I have had CW for just over a month and had about 6 account deletions, and pulled my report up to 3 times a day until unlimited didn't mean unlimited anymore.... I am up to a total of 112 inquiries and still haven't had any fall off! I have a total of 14 accounts reporting, so my file must not be big enough to drop those inquiries yet. Thanks for the congrats!
dep_tx, if I remember correctly you are in Kansas also? Is your email on? It seems that you should have been able to get a prime card with a 705 FICO. Mine was 703 and I was approved for 4 new cards on that report. Is there something I'm missing? My email is on if you would like to share some Kansas info...
I had a 41 point drop with a secured loan that only had 59% balance when it reported on EX. I got +8 on EQ and TU not reporting yet. It was rated "too new to rate" Charlie
Go look at the new account that was added. Does it show the true $5k limit, or does it say the current and high balance are both zero? If both are zero then it's a 100% utilized card. If not then I can't answer your question. As for not going up, I imagine the new account, until it ages a few months, is going to have more weight than the credit increase you added. But then again, who can really say what goes on in FICO land... Probably the same reason I applied for credit knowing I was going to get a mortgage: I had NO credit history except my student loans. The LOC account I got in May has probably boosted my scores more than all of the cleanup I have done. (Though six cards might have been going overboard )
