Will Obtaining A New Credit Card Cause Credit Score To Drop

Guest: househunt
Post subject: Will Obtaining A New Credit Card Cause Credit Score To Drop
Posted: Sun Jun 12, 2005 1:37 pm

I'm recently just getting back on my feet credit score wise after a period of less than good credit. Have an avg score (with all 3 agencies) just over 700 but have been making due with no CC for years. Now looking to purchase home and although I have gotten pre-approvals with current score, not getting approved for amounts that I'm looking for...mainly due to lack of credit products on my report. Would like to obtain a CC, but afraid that by doing so, my score will immediately drop, further hurting my efforts with the mortgage hunt.

Does anyone know if this will be the case or, if not, what exactly is the immediate impact of obtaining a new card on your score?

Thanx.

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

Guest: Board Monitor
Post subject: Will Obtaining A New Credit Card Cause Credit Score To Drop
Posted: Sun Jun 12, 2005 2:20 pm

You are correct, that applying for new credit can cause inquiries and lower the credit score, as well as a new tradeline being added to the credit report can affect the score.

It is best if you get your mortgage loan first! Then after that is accomplished then apply for the credit cards you want.
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

Guest: RacieRacer
Post subject: Will Obtaining A New Credit Card Cause Credit Score To Drop
Posted: Sun Jun 12, 2005 4:30 pm

Nightstar, do you have any idea how long it will take before a new credit card (assuming it's paid as agreed) can have a positive effect on your credit score?

Guest: Polonius
Credit Expert (100+ Posts)
Post subject: Will Obtaining A New Credit Card Cause Credit Score To Drop
Posted: Sun Jun 12, 2005 7:47 pm

It is correct that applying for a credit card can lower your score, since inquiries above a certain number are seen as a negative. One or two inquiries in a six month period doesn't have much affect on a score.

And IF you get a new credit card, your score goes up usually. You have more credit available, your mix of credit might improve, your utilization goes down--all those factors raise your credit score far more than a single inquiry will lower it.

So don't hesitate to apply for a new credit card. If you get it, your score will likely be higher than if you never applied. There's no point applying, though, if you feel you have little chance of getting the card.

Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Will Obtaining A New Credit Card Cause Credit Score To Drop
Posted: Mon Jun 13, 2005 12:04 am

househunt wrote:
I'm recently just getting back on my feet credit score wise after a period of less than good credit. Have an avg score (with all 3 agencies) just over 700 but have been making due with no CC for years. Now looking to purchase home and although I have gotten pre-approvals with current score, not getting approved for amounts that I'm looking for...mainly due to lack of credit products on my report. Would like to obtain a CC, but afraid that by doing so, my score will immediately drop, further hurting my efforts with the mortgage hunt.

Does anyone know if this will be the case or, if not, what exactly is the immediate impact of obtaining a new card on your score?

Thanx.

ME -7 each (EQ)

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

Guest: RacieRacer
Post subject: Will Obtaining A New Credit Card Cause Credit Score To Drop
Posted: Mon Jun 13, 2005 6:06 pm

I just had another new positive tradeline added to my account and it made the score drop 8 points. I'm thinking it is because they are not reporting the credit limit. It's with a dept. store. Wonder if I should dispute it w/the cra or ask the dept. store to report the credit limit, or if the problem will correct itself in the near future.

Guest: Board Monitor
Post subject: Will Obtaining A New Credit Card Cause Credit Score To Drop
Posted: Mon Jun 13, 2005 9:20 pm

What two department stores are you talking about? Like to have their names.

You want to call them, talk to their reporting department, and tell them you have a problem your credit limit is not being reported to the credit reporting agencies and need someone there to handle updating the bureaus for you.

They might be doing this on purpose, for their own reason, which would be to keep competition at bay not knowing your credit limit.

If they refuse to update, then you will need to fix the problem yourself, what you do is either get balance transfer to yourself, and turn around pay that back, it can't be the whole credit limit, leave $100 or so shy of what you borrow.

When you pay it back it will alter your high balance which is being used for utilization instead of the credit limit... when you pay back down, that high balance will be close to your actual credit limit and should increase your score again.

If you can't get a balance transfer, there are other options some more costly then others... cash advance, purchase large item, and return for refund to the credit card, so that the high balance is driven up that way.

On your other question as to how long accounts take to affect the score, it is my belief that it is a step ladder affect, after 6 months, after 1 year, after 2 years... then the older it gets the better the score. (provided utilization is kept low and continued positive payment history).
__Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

Guest: RacieRacer
Post subject: Will Obtaining A New Credit Card Cause Credit Score To Drop
Posted: Tue Jun 14, 2005 7:32 am

That one is with Hecht's Dept. Store (May Co. Stores). 300.00 limit, but reports as 0.

The reason I asked if it would correct itself in the near future is with my new BofA card, on one of the CRs it also reported as 0 cr limit, but soon after when I went and looked at it it had the 500.00 limit. But I think I may have disputed the credit limit with the CRA (before I read on these boards that is not the best idea).

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

Guest: NightStar
Post subject: Will Obtaining A New Credit Card Cause Credit Score To Drop
Posted: Tue Jun 14, 2005 12:42 pm

If the 30 days are not up, you can call the credit reporting agency back at any time to cancel an on going dispute.

Best to contact the creditor on these type of problems, otherwise you will have to use the card up close to the limit and pay it back down for a high balance to help utilization.
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

Bank of America and Daily Reports

Guest: slickytfox
Post subject: Bank of America and Daily Reports
Posted: Sat Jun 04, 2005 12:01 pm

www.bankofamericaprivacysource.com is still allowing daily reports. I've done it for three days straight now during my trial period.

Looks, feels, and acts just like MCK and PG. I expect that it will soon follow the others with one report per month.

Guest: Board Monitor
Post subject: Bank of America and Daily Reports
Posted: Sun Jun 05, 2005 11:27 pm

Thanks for the post slickytfox! Please keep us updated on how things go with them...
Best Regards,
Curtis Arnold
Board Monitor
http://www.cardratings.com
(501) 663-0314

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Bank of America and Daily Reports
Posted: Mon Jun 06, 2005 12:19 am

Looks, feels, and acts just like MCK and PG. I expect that it will soon follow the others with one report per month.

"IF" THEY COPY PG & MCK (one per month) JUST DUMP THEM TOO!!!

Guest: slickytfox
Post subject: Bank of America and Daily Reports
Posted: Mon Jun 06, 2005 12:25 am

Wow! I'm impressed that Curtis gave me a reply. Much due respect to you, sir.

BOFA is still pulling daily. 5 days now, haven't seen a bump on inquiries like I had become accustomed to when running MCK and PG simultaneously.

Much respect to you Curtis.

Guest: mouse
SENIOR MEMBER (Member for 2 yrs.+)
Post subject: Bank of America and Daily Reports
Posted: Mon Jun 06, 2005 12:33 am

"B" is not an exact science...

Give it some time

Guest: CreditCardGuru
Post subject: Bank of America and Daily Reports
Posted: Mon Jun 06, 2005 11:51 pm

Trilegiant the company that owns MCK PG and BankofAmerica PS probably has several other ones out there, seems like they market towards bank customers upon card activation. I think they run one for Bank One (former Bank One) but not sure, I can't remember which card it was I activated (besides BofA) that had an add for a product from Trilegiant.
I'm the Credit Card Guru, YOU BET

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

Guest: RacieRacer
Post subject: Bank of America and Daily Reports
Posted: Sun Jun 12, 2005 11:52 am

I just called BofA to activate a replacement debit card, I chose to do the privacysouce thing on phone talking to computer voice, it started my subscription today and I have to wait 3 weeks to get a CR thru the mail .

I went to the site and it said I needed the membership # to get a username etc online.

3 of the 4 wks of my free trial period will be wasted.

I had tried to join via web before I called to activate my card and it said there was an error and I had to call that 877#, called, it said I had to wait til Mon. (that time I entered my BofA credit card)

I hope I am not going to be enrolled twice and I hope there will be a way for me to access my membership online, and sooner than 3 wks.

Guest: RacieRacer
Post subject: Bank of America and Daily Reports
Posted: Tue Jun 14, 2005 8:42 am

BTW, I just called them and they gave me my membership # over the phone and was able to access reports.

Guest: Board Monitor
Post subject: Bank of America and Daily Reports
Posted: Tue Jun 14, 2005 12:49 pm

Glad to hear that one worked out, you can call customer service to confirm that they only have you being billed once, that would not hurt to check on.
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

Keeping Your Account While Switching Credit Cards

Guest: kimkimkim
Post subject: Keeping Your Account While Switching Credit Cards
Posted: Tue May 24, 2005 12:11 pm

I have had a Southwest Airlines Visa from FirstUSA/BankOne/(now)Chase for about 8 years with a perfect credit history with the card. (no late bills etc)

I have been paying a yearly fee of around $40 because it was worth it for the flight vouchers I received annually. Now I don't travel as much and have decided the yearly fee is no longer worth the benefit, so i would like to close this credit card acccount.

My question is... Is there anyway that I can switch to another card with Chase in order to keep this long term credit history with them intact? I've always heard that you want to have a card that you've had for a long time because it shows up nicely on your credit report. So, I'm wondering if I close this card if its going to hurt my credit since it's the only credit card I have been using for these 8 years. I just recently opened a new visa account with another company to serve as a backup card.

So, will closing this long term card hurt my credit rating? Or does it stay on there and still look good that I had a good record with them for so many years.

Thanks in advance for any advice!

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

Guest: fenster
Post subject: Keeping Your Account While Switching Credit Cards
Posted: Tue May 24, 2005 3:56 pm

Don’t do it, it’ll be fatal. Take the pain and keep paying the $40 for now. Tomorrow, call Chase and weigh the possibilities of merging, fusing or exchanging this airline card with one of their no annual fee cards, they’re human, they will listen and suggest. Accept any and everything but closure. Even if they turn out to be animals and don’t listen, what’s $40 a year compared to a decade of solid credit rating, do the math.

legitimate user
Post subject: Keeping Your Account While Switching Credit Cards
Posted: Tue May 24, 2005 7:25 pm

I would say something more like, "don't close the card, that might not be good".

By all means call Chase up and tell them what you'd like to do. They're NOT going to get pissy over the request and close the account. They WILL try to keep you as a customer, and as a good customer, will probably bend over backwards for you. Best of luck.

Guest: hdporter
Post subject: Keeping Your Account While Switching Credit Cards
Posted: Tue May 24, 2005 11:37 pm

An additional comment: If you open another Chase account it will be treated as a separate, new account. Your existing account will be treated no differently once closed than if you opened a new account at another bank.

If you have no other reported revolving credits that have been open for at least 5 years, I'd strongly consider keeping this one open. Because of the account type, there a decent likelihood they won't be flexible on the fee. But you can call, ask for account retention, state that you're considering opening a low rate no-fee account at another bank but would maintain this account if the fee were eliminated. They may come through with a reduction ... but I suspect not. It's worth a shot.

If you have other open accounts that are aged at least 5 years, maintaining this account is less critical and I'd weigh a decision based upon your current credit score. If your FICO is over 700, I'd get rid of it. You can handle the hit to your score without significant conseqauence (if you're going for a mortgage within 1 year, I'd wait until after you obtained it). If your FICO is below 680, you might want to wait until your score improves.
(Go with your gut inclination at 680-700)

- Harry

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

Guest: Board Monitor
Post subject: Keeping Your Account While Switching Credit Cards
Posted: Thu May 26, 2005 1:23 pm

Good to call them to see what options you have available on this card, and what they are willing to do to keep you as a customer.

If they convert it, then the old account will be closed out and a new one will takes it's place, the good account will continue to be reported 10 years from the close date.

You want to make sure the new card has the same credit limit, so that the utilization on your credit report does not take a hit.

Try first instead of converting, just get them to waive the yearly fee, it is possible.
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

Guest: kimkimkim
Post subject: Keeping Your Account While Switching Credit Cards
Posted: Sat May 28, 2005 9:29 am

Thanks for all the replies everyone! Since this good account will continue to show on my credit report for the 10 years, isn't that good enough? Doesn't it still show creditors that I have a very long standing history with good credit?

It's the only card we've had in that time, I like to keep things simple with less bills to keep up with. I didn't realize there was an advantage to having a backup card, but now I know.

We signed up for 2 new credit cards and will of course now continue to use both of those to build up our credit rating again.

Our score is over 700 and we purchased our home a few years ago so won't be needing a new mortgage for a long time. We also won't be needing car loans either, so I'm thinking it might be ok if we do close this card and take a hit, if they don't give us any other options.

Thanks again for all the advice!

Update:

I called the company and told them that I wanted to close the account because I no longer wanted to pay the annual fee. They wouldn't remove the fee, but they did say that they could switch me to a new card that had no annual fee.

I asked how this would affect my long standing credit history with them and he said that the new card would show up on my credit report with an opening date that is the same as my old card. So, according to this CSR, if I understood him correctly this new card would appear to be almost 10 years old due to the account opening date.

This really doesn't make much sense to me because he did confirm that I would be getting a new account number. If I have a new account number doesnt that mean it will show up as a brand new account?

I told them I would call back once I've made my final decision. Our credit score isn't critical right now because we've bought a new house/car within the past year or two and will not be making any other large purchases in the near future. (ie. next 5 years)

Should I go ahead and close the account? I have already signed up for a new MasterCard, so I really don't need the new account with this company. The only reason I would be getting it would be to help out my credit report a little.

Thoughts?
Thanks in advance!
Kim

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

Guest: Board Monitor
Post subject: Keeping Your Account While Switching Credit Cards
Posted: Tue Jun 14, 2005 2:18 pm

That would be interesting if the terms on the new card is good, worth looking over, yes it would be a new tradeline with a new account number, the old one would be closed and a new one to take it's place, but holding all the history of the other card so that should be a good boost to the score.

You would then have 2 good tradelines related to one account... just check out the terms and make sure it is a better deal.
Best Regards,
Pammila Phillis
Board Monitor
http://www.cardratings.com
501-663-0314 PH

Guest: kimkimkim
Post subject: Keeping Your Account While Switching Credit Cards
Posted: Tue Jun 14, 2005 3:41 pm

So, you think it is in fact possible for them to give me a new account but to keep the old account opening date on the new card? I figured they were just telling me that to convince me to get the new card.

The terms were ok... I pay off my debt each month so the finance charges aren't that important to me. They did say they'd give me a lower rate, but my biggest concern was getting rid of the annual fee.

Thanks again!

Obtaining Credit Card From Same Lendor After Bad History

Guest: kunderian
Post subject: Obtaining Credit Card From Same Lendor After Bad History
Posted: Tue Jun 14, 2005 6:31 pm

Hi, when I was younger, I was very irresponsible with money. I had a number of charged off accounts almost 10 years ago. I have slowly built up my credit again and my score is around 700. I know that the SOL on the collection of the charged off accounts has passed, but I was wondering if I would be able to establish another line of credit with the same companies again. Do they still keep an internal record of charged off accounts past the SOL? The charged off accounts came from Chase, Discover, and AMEX.

---

CardRatings.com is the most comprehensive source for comparing credit card offers. Please visit CardRatings.com to view the best rated credit cards!

---

Guest: Shawnee
Post subject: Obtaining Credit Card From Same Lendor After Bad History
Posted: Tue Jun 14, 2005 8:07 pm

I don't know about Chase or Discover, but do yourself a favor and don't waste an inquiry with AMEX. They have internal data bases going back more than twenty years, and if you have ever stiffed them, they will not approve a new account until you pay your old account and wait a year.

Guest: Alexis Rios
Post subject: Obtaining Credit Card From Same Lendor After Bad History
Posted: Tue Jun 14, 2005 8:31 pm

Try citibank or MBNA

Guest: guessindigo
Post subject: Obtaining Credit Card From Same Lendor After Bad History
Posted: Tue Jun 14, 2005 10:09 pm

If you CO'd on creditors, once it falls off, most if not all will let you have a account again.

If you included creditors in BK, chances are most will blacklist you.

AMEX is the lone exception. If you CO or BK with them, they'll demand to be paid before allowing you to carry their card again. + wat 1 year

Known blacklisters: Discover, Citi, MBNA, Sears, Providian, and of course AMEX