Applying for credit card

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akhileshnair01
 
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Applying for credit card

Postby akhileshnair01 » Mon Jul 25, 2016 5:02 pm

Hi,

I have recently started my first credit card with BOFA as a secured one. I am going to complete sixth month payment without any miss payments in Aug. I have a few queries, please help.

When I checked with credit union they said only after 6 months after starting your first credit, the score will be updated. Is this right?
I am planning to apply for more credit cards before my credit score/credit history get updated. Will this make any impact on the credit score which is going to get updated next month?

Thanks in advance,
:)


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PhillyPhoto
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Re: Applying for credit card

Postby PhillyPhoto » Tue Jul 26, 2016 8:41 am

I've never heard of it taking 6 months to update your score (although some scoring websites only update it every so many months). Your credit is there, even without a credit card at all. You can check it yourself at places like Credit Karma (FAKO) or Credit Scorecard (FICO) or lots of other places. Your score changes when there are changes to your report. When you make a payment (late or on-time), it updates. When you have an inquiry for a new card, or a new account is opened, your report is updated. Your score is for the particular moment in time the report is pulled, and is based on the model it's built from (there are multiple different ones just for FICO, and will vary between lenders).
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Amex: Mercedes-Benz Plat, HHonors
Chase: Amazon.com Rewards, Freedom
Citi: ThankYou

Sock drawer Cards:
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Citi: Macy's Amex, Simplicity
Citizens Bank: Cash Back Plus World
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718 Eq|734 TU (8/16)|733 Ex (9/16)

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Vattené
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Re: Applying for credit card

Postby Vattené » Tue Jul 26, 2016 11:13 am

If this secured card is your first credit product of any type, perhaps it will take that long for the credit reporting agencies to establish a credit profile on you. Under normal circumstances, though, once you have established a credit profile (even if it is a new and thin one) the score is just based off of the information in it and will change whenever something in your credit profile changes. This could be a lender reporting your account balance and on-time payment, you yourself requesting credit and resulting in a hard pull, etc. I don't know firsthand, but my guess is the credit union is telling you it will take that long for other lenders to be able to pull a credit report on you when you make an inquiry for more credit.
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takeshi
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Re: Applying for credit card

Postby takeshi » Wed Jul 27, 2016 4:17 pm

akhileshnair01 wrote:When I checked with credit union they said only after 6 months after starting your first credit, the score will be updated. Is this right?

You need at least 6 months of having an active credit account in order to have a FICO score generated. If it doesn't exist it cannot update.
http://www.myfico.com/crediteducation/q ... score.aspx

akhileshnair01 wrote:I am planning to apply for more credit cards before my credit score/credit history get updated. Will this make any impact on the credit score which is going to get updated next month?

If course. See also:
http://www.myfico.com/crediteducation/w ... score.aspx

If you're approved new accounts will drop your Average Age of Accounts (Length of Credit History) and there is an impact from having new accounts on your reports. The hard pulls will also have a bit of an impact.

If you profile is that thin and new you shouldn't be applying for a bunch of cards. Apply for one. Apply for another down the road. You need to gradually add accounts.

PhillyPhoto wrote:You can check it yourself at places like Credit Karma (FAKO) or Credit Scorecard (FICO) or lots of other places.

Always consider the specific scoring model and CRA when referencing scores. Don't just rely on FAKO and FICO. There are many scoring models used by creditors. While most use a FICO model, not all do. Even FICO doesn't have just one scoring model used by creditors. You also need to consider the relevance of a model/CRA combo to a given creditor/product.

Credit Karma provides a TU VantageScore 3.0 and a EQ VantageScore 3.0. Discover Score Card provides an EX FICO 8. Any of those 3 scores are only relevant to creditors that use them and not relevant to others -- same as with any model/CRA combo out there.



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