How long for credit score to recover after new application?

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commdiver
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How long for credit score to recover after new application?

Postby commdiver » Wed Jan 11, 2012 7:29 pm

I applied for and was approved for all the credit cards in my signature within the past two months. How long will it take for my credit score to bounce back?
Current credit cards:
American Express: Blue Cash Everyday, Fidelity Investment Rewards
Discover: It
MasterCard: Chase Ink Cash
Visa: BB&T Visa Signature, Capital One Business Platinum, Chase Freedom, Citi Forward


DoingHomework
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Postby DoingHomework » Thu Jan 12, 2012 11:33 am

Hard inquiries stay on your report for 2 years. But they are not a serious problem if you have no other negatives.

Capital
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Postby Capital » Thu Jan 12, 2012 9:42 pm

DoingHomework wrote:Hard inquiries stay on your report for 2 years.


And your score could go up within that time for other reasons like CLI, timely payments or credit history.

commdiver
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Postby commdiver » Fri Jan 13, 2012 9:20 pm

CLI=credit limit increase, right? I thought that would be a negative since now I have more credit available to me. Am I mistaken?
Current credit cards:
American Express: Blue Cash Everyday, Fidelity Investment Rewards
Discover: It
MasterCard: Chase Ink Cash
Visa: BB&T Visa Signature, Capital One Business Platinum, Chase Freedom, Citi Forward

Capital
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Location: Vancouver, British Columbia

Postby Capital » Sat Jan 14, 2012 2:09 am

commdiver wrote:CLI=credit limit increase, right? I thought that would be a negative since now I have more credit available to me. Am I mistaken?


When your credit limit is increased, your score will generally go up everything else being equal. This is because the increase in credit reduces your utilization rate. For example, if you have a $100 balance on a $1,000 credit limit, then your utilization is 10%. If you double your credit limit to $2,000 then that same $100 is now only 5% utilization. There is an inverse relationship between credit limit and utilization rate. This puts potential creditors at ease because they see that other creditors are willing to lend to you which is why your credit score is likely to increase.

commdiver
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Postby commdiver » Sat Jan 14, 2012 2:21 pm

That makes sense, thank you.

Does anyone know when your balance is reported? Is it when your statement is issued? If so, would paying your credit card off right before receiving a statement be beneficial? This would cause your statement to be either zero or very low, meaning your credit utilization rate would be close to zero percent.
Current credit cards:
American Express: Blue Cash Everyday, Fidelity Investment Rewards
Discover: It
MasterCard: Chase Ink Cash
Visa: BB&T Visa Signature, Capital One Business Platinum, Chase Freedom, Citi Forward

ooxs
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Postby ooxs » Wed Jan 18, 2012 10:16 pm

Your balance is reported at the end of your billing cycle or date your statement closed. What you want to do is reduce the balance before the closing date, zeroing your balance will leave the bank with nothing to report.



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