Credit score after credit card approval

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gabo864
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Credit score after credit card approval

Postby gabo864 » Mon May 04, 2015 12:50 pm

hey everyone.

So my Credit scored was 676 last week. About two weeks ago I applied for a Amex everyday card and I was approved for $5500. This week Credit Karma added my new account and I was expecting my score to drop since a new account was added which required a HP on my Credit Score, but instead it went up to TU 711 and Equinox 710. Do you think it will be dropping in the next couple of weeks? I'm way under 30% on all my cards, 100% payments, 6 inquires. Thanks.


liberate
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Re: Credit score after credit card approval

Postby liberate » Mon May 04, 2015 1:03 pm

My guess is the score increase is reflecting the increased available util. given by the new AmEx card. Maybe it negated the HP drop, especially if the extra $5k is large relative to your other cards. It depends on a lot of things; no one can tell you if it'll drop or not.

Speculating over month-to-month scores is fairly pointless; it can change by 10s of points one way or the other. Any reason you need to have a certain score within the next few weeks?
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...

gabo864
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Re: Credit score after credit card approval

Postby gabo864 » Mon May 04, 2015 1:59 pm

liberate wrote:My guess is the score increase is reflecting the increased available util. given by the new AmEx card. Maybe it negated the HP drop, especially if the extra $5k is large relative to your other cards. It depends on a lot of things; no one can tell you if it'll drop or not.

Speculating over month-to-month scores is fairly pointless; it can change by 10s of points one way or the other. Any reason you need to have a certain score within the next few weeks?



Thnks for the info. My other cards have a credit limit of $500 and my discover it card credit limit just went up to $3750, so yes $5500 is a pretty large amount compared to my other cards. I was planning to apply for a car loan in the next couple months. I really hope I can finance it without having to use my wife (she has a better score, longer credit history and already finished paying a car loan a few months ago). I'm crossing my fingers I can get a good interest rate.

liberate
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Location: Iowa

Re: Credit score after credit card approval

Postby liberate » Mon May 04, 2015 3:11 pm

gabo864 wrote:Thnks for the info. My other cards have a credit limit of $500 and my discover it card credit limit just went up to $3750, so yes $5500 is a pretty large amount compared to my other cards. I was planning to apply for a car loan in the next couple months. I really hope I can finance it without having to use my wife (she has a better score, longer credit history and already finished paying a car loan a few months ago). I'm crossing my fingers I can get a good interest rate.


That makes more sense. I apped for two new cards a few months back and saw a 10-15 point increase in score, so it's similar to your situation. I just assumed it was the extra available utilization, and my score did not drop following the increase. If you're waiting a few months, you can try any soft pull CLIs, particularly the AmEx 3x CLI, and see what you get.
It: $19.5k
TrueEarnings: $12k
Sallie Mae: $5k
Freedom: $2.5k

Best Buy: $8k
Kohl's: $0.8k

Discover TU FICO: 754 (6/2015)
Building credit while completeing grad school. Three long years to go...

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CarefulBuilder14
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Re: Credit score after credit card approval

Postby CarefulBuilder14 » Mon May 04, 2015 7:54 pm

One possible explanation is that the 676 reflected balances on several cards - or no cards at all.

Imagine three people with otherwise identical credit:
A has $10 balances on each of three cards, with high CLs. A makes mid-month payments but some transactions still report on the statement.
B uses cards but pays in full before the statements cut, so no balances report.
C has one card with a balance. It has a high CL and 10% utilization, and C carries a moderate balance from month to month, not paying in full.

FICO says C is the least risky, even though A and B seem lower risk to most people.
Warranties and sketchy merchants: Schwab Platinum
Price rewind: Costco
Travel insurance: Prestige, CSP
Perks: IHG, Hyatt
Rewards/Offers: Discover, Freedom, ED, BCE
Taxes/Misc: SPG

Limited value, might close: Arrival

Might add: First Tech, proper business card



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