Score drop

[chilton1]

I applied for and received a Houshold card, 3000 CL, which finally showed up on my Equifax credit report. My score went down from 658 to 641, 17 points.

Will the score go back up once I make a few payments or am I looks at months before the score rebounds?

[breathing_easier]

Always hard to say with the FICO scoring model, but the thought is it takes about six months for a score to rebound after a new account is added. Keep in mind that the temporary hit is worth the value that a paid-on-time tradeline that is adding history each month will provide.

[LNY]

Yes, the short-term hit is caused by the combination of the inquiry and the drop in the average age of your accounts. As Breathing said, you *could* be looking at a few months, unless you make major changes such as dramatically paying down balances, thus drastically dropping your utilization. Also, other things happening on your reports (inquiries dropping or going beyond the one-year mark, other accounts seasoning, etc.) will probably offset some of the drop by picking up points here and there.

[chilton1]

Thanks you.

I guess the lesson is don't apply for new credit if you need to have a score in a few months.

Need private student loans in January 07 now I most likely will not be able to make it back to Sallie mae's minimum score.

Thanks for the imput.

[PolarBearnCO]

Thanks you.

I guess the lesson is don't apply for new credit if you need to have a score in a few months.

I've always read the lesson is don't apply for credit unless you really need it... period!

If you need a quick fix, see if you can become an authorized user on another card. My gf let me become an AU on her $4K Amazon Chase with 2-yr never late history, and my score jumped about 50 points within 72 hours.

[LNY]

I've always read the lesson is don't apply for credit unless you really need it... period!

If you need a quick fix, see if you can become an authorized user on another card. My gf let me become an AU on her $4K Amazon Chase with 2-yr never late history, and my score jumped about 50 points within 72 hours.

If you "really need" credit, applying for more is the probably the last thing you should do! Unless you "really need" it to improve scores for a mortgage or something. There are plenty of legitimate reasons to apply for credit you don't need and have no intention of using. I do it all the time. I rarely use any of my credit. So if by chance I do "need" it one day, I won't have to apply for more.

I always tell people to strategically apply for credit for the purpose of maintaining a good credit profile/history, but only use it sparingly... just because you have it doesn't mean you should spend it! If you play your cards (heh) right, should misfortune befall you in future, you will then have enough available credit to not have to desperately apply for more.

For most people, if they "really need" credit, getting more will only dig them into a deeper hole. Then exception is if you use it to pay off your current debt and then stop using it for anything that isn't necessary, or just use it for manipulation of your reports.

Credit itself isn't bad, only the perception that it's part of your income and there for you to spend freely.

[chilton1]

Thanks LNY, I thought i need it to help improve my score. I only had one credt card a Credit One Bank card with a $450 credit limit. I don't use any of the cards I got in October alot and I pay off each month. Utilization always one percent.

when BOA turned me down for their secured card they said I did not have enough credit experience.

The HSBC card I have, I charged put $145. My question is should I just pay it off or is it ok to pay $50 or less each month so that I don't have to charge more to keep it active. It is zero percent for one year, with CL 3000.

[LNY]

Thanks LNY, I thought i need it to help improve my score. I only had one credt card a Credit One Bank card with a $450 credit limit. I don't use any of the cards I got in October alot and I pay off each month. Utilization always one percent.

when BOA turned me down for their secured card they said I did not have enough credit experience.

The HSBC card I have, I charged put $145. My question is should I just pay it off or is it ok to pay $50 or less each month so that I don't have to charge more to keep it active. It is zero percent for one year, with CL 3000.

Great utilization!! Well done!

With a balance of only $145 and 0% interest, it's fine to pay it off a little at a time. Otherwise, like you said, you will be tempted to use it and maybe run it up. Remember that with only a small amount of credit available, even nominal balances will affect your util quite a bit, so until you get more cards, you will be in tiny balance or PIF land.

Have you thought of applying for student cards? Is your new Discover a student card?

[chilton1]

Thanks LNY,

I have been very good. I don't have a student card. I am planning to apply for the American express blue student card, but i am waiting until I clean up the credit more may be mid next year.

I have two baddies left on Experian one paid and one unpaid from 2002.

Equifax and TU has four. One of the TU will fall off next year if I am a NY resident.

Can I use my cell phone to call (still has NY number) TU since paid collection in NY stay on five years. If not I will move back for a week and call to have it removed.

[LNY]

Thanks LNY,

I have been very good. I don't have a student card. I am planning to apply for the American express blue student card, but i am waiting until I clean up the credit more may be mid next year.

I have two baddies left on Experian one paid and one unpaid from 2002.

Equifax and TU has four. One of the TU will fall off next year if I am a NY resident.

Can I use my cell phone to call (still has NY number) TU since paid collection in NY stay on five years. If not I will move back for a week and call to have it removed.

That I'm not sure of. I don't know enough about cellphone technology, but it seems as if calling from a NY area code would make their system register the call as coming from NY. I'd call TU from my own cellphone to check, but I don't think that would answer the question because the recorded message wouldn't tell me where they thought I was calling from, only that their hours are based on where I'm calling from.

[chilton1]

I have your my cell phone to call in the mornings to get the early Eastern time. I will let you know if it works with getting the paid removed.