Until about 2 months ago I had NO major credit cards. I had 1 target card (over 3 years old) never late with a $300. limit. Over the past 2 months, I have managed to get 2 First Premier cards with $250. limits. I also last week got the Orchard card with a $300. limit. Will these new accounts raise my score? I have already made several payments to the first FPB card and I sent out payments (not due yet) to the other 2 cards. The problems on my credit are 2 $300 collections (utility) not reporting paid...in dispute now with all 3 agencies. I also have a car note that is 3 1/2 years old and many lates last about 1 year and 2 months ago. Will these new accounts be a good thing or bad thing for my scores? My current TU score is 508 with only the one FPB reported. When the other 3 new cards are reported (being new accounts) what kind of score change can I expect from this new credit? Thanks to all who can help! USA...USA...USA!!
i think these new accounts will bring you down some, if for no other reason then inq activity. max them, and it'll hurt you.. based off reason codes I've seen, ater 1 year they should be positive. just don't keep them maxed or get behind ever. just my thoughts... if i were to get new revolving credit accounts, I wouldn't expect a postiive out of them for 12 months.. could be pleasantly surprised though
Oh, I won't max them. The only reason that I got them to begin with is because we are trying to buy a new home in the next 2 years and all of the lenders I have spoken with say that it is best to have 5 tradelines open, current, ontime when it comes time to actually apply for the loan. I am keeping everything no more than 50% balance to CL. I learned my lesson long ago. Got into major problems and had to re-learn lessons along the way. Thanks for your info!!
I would tend to think that keeping them at not more than 20% to 25% of max would be a much better place to keep them.
I agree that 25% or less is better. Motrgage brokers I have dealt with recently say they like to see less than 50% to qualify. good luck pb
The new chase card brought my equifax,transunion up. My experian went down 6 points. It is only $200, so I am just going to use it for gas and immediately send a payment each month. I don't like credit cards especially due to this credit mess. So I tend to work in Cash. I am going for the big purchase such as a house in 2 years too.
Actually, FICO scores also take into account your total credit available in relation to the debt you have, so opening up some new credit card accounts should help your ratios. As long as you don't charge much on them, you might see an increase in your scores (minus the hit you take for the inquiries).
I would think that with the lower credit lines, coupled with the inquiry, would probably be a negative factor for awhile. I had a BoA that boosted my score 28 points, but the CL was 12.5K
I work almost 100% credit...I pay as often as necessary ON-LINE...you can even pay the bill in full BEFORE you even get it in the mail. I SAVE "TONS" OF $$$$$ USING CREDIT FOR MY BENEFIT... CASH BACK CARDS or MILEAGE CARDS or 0.00% to 5.90% BT offers...I PAY ALL BILLS IN FULL >5.90%... But I also "MILK" 0.00 BT offers to the "MAX"!!!! I get ZERO benefit from cash...SO I DON'T USE IT...EVER...except PEPSI from a vending machine... BUT if cash works for you...fine.
