Quick Help Regarding New Credit Card + Loan

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4 posts
RyanMac
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Quick Help Regarding New Credit Card + Loan

Postby RyanMac » Sun Feb 23, 2014 12:32 am

I'll try and keep things short. I'm a 24 year old student who will need to take out a bank loan in June-July for a podiatric medicine program. Here's a quick overview of my stats:
FICO Score (2 weeks ago): 732

Visa #1: $3500 limit, 4 years old, 5% utilization
Visa #2: $5500 limit, 1.5 years old, 25% utilization
AMEX Gold: $10,000 limit, just approved and acquired, 0% utilization

I have been doing a lot of research as I want to ensure that come time to get a loan I will be able to
1) be approved
2) get a competitive interest rate

I just applied and was approved for my AMEX Gold. Should I be worried about the drop with the hard pull they did on me? I've been told hard pulls carry more weight in the first 6 months.

Thanks!


MemberSince99
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Postby MemberSince99 » Sun Feb 23, 2014 11:48 am

You got a hard limit 10k Gold card? That's interesting.


If you were really worried about any potential drop in score for the inquiry maybe the best time to think about that is BEFORE pulling the trigger. Be that as it may, the effects of the inquiry will fade with time and yes that is correct. In a year they have NO effect whatsoever on a FICO score, and after 6 months they don't matter much to most lenders and don't hurt your score much either. Frankly I would not lose sleep about it, it's not like you got cancer or lost your job, it's an inquiry on your credit.

tigerowl06
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Postby tigerowl06 » Sun Feb 23, 2014 2:16 pm

RyanMac wrote:I'll try and keep things short. I'm a 24 year old student who will need to take out a bank loan in June-July for a podiatric medicine program. Here's a quick overview of my stats:
FICO Score (2 weeks ago): 732

Visa #1: $3500 limit, 4 years old, 5% utilization
Visa #2: $5500 limit, 1.5 years old, 25% utilization
AMEX Gold: $10,000 limit, just approved and acquired, 0% utilization

I have been doing a lot of research as I want to ensure that come time to get a loan I will be able to
1) be approved
2) get a competitive interest rate

I just applied and was approved for my AMEX Gold. Should I be worried about the drop with the hard pull they did on me? I've been told hard pulls carry more weight in the first 6 months.

Thanks!


I really doubt that one inquiry will have an impact on your student loan application. As far as an impact on your credit score, the bigger issues are average age of accounts and % utilization.

(1) Your AAOA just dropped from 2.75 years to 1.83 years, but in five months it will be more like 2.3 years, and with an additional account reporting. No doubt, they give loans to young people with less credit history than that.

(2) Even if you got a hard spending limit, if it's the charge card you're talking about (not the Gold Delta Skymiles revolver), your "limit" as reported to the credit bureaus will likely be the largest amount you spend in one month. You might want to call and ask about that. The best advice anyone can give you at this point is to reduce your overall utilization to <10% when you go for the loan.
Chase Freedom ($2.5K, 10/2009)
Discover it ($6K; 03/2011)
Amex BCE ($19.5K; 02/2013 - 2011 BD)

RyanMac
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Location: Canada

Postby RyanMac » Sun Feb 23, 2014 2:33 pm

The AMEX card I have is associated with Scotiabank (I'm Canadian) and as far as I know is not a charge card so I believe would be a revolver. I believe they are just piggybacking on AMEX's rewards program.



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