Author Topic: Effect of opening CCs on Credit Score - Your Experience and Tips (Read 5419 times)

ae123 · « **on:** May 24, 2012, 09:16:45 AM »

Before getting into the CC scene, my credit score was 797.
Now after about 2 years of opening numerous cards, cancelling, downgrading, churning etc., my credit score has dropped to 745.
I have never paid late or anything like that. It simply dropped from all the inquires and closings.

1 - What are your experiences?

2 - Any tips to stay in this "business" and keep your credit score as high as possible.

(Some of this may be covered in other threads, but let's keep this thread dedicated to people's experiences and ideas. Thanks).

sruly101 · « **Reply #1 on:** May 24, 2012, 09:35:47 AM »

good question, i would also like to know!!

Shmelly · « **Reply #2 on:** May 24, 2012, 10:11:23 AM »

Nearly identical to my experience. All 3 scores were 780+ before I started this game. Just checked and they've gone down to 750/740/723.

Dan · « **Reply #3 on:** May 24, 2012, 10:18:48 AM »

Stop churning for 6 months and it will go back up. It's the inquiries that are hurting you.
Not that I'd let that stop me.

Shmelly · « **Reply #4 on:** May 24, 2012, 10:20:44 AM »

If

Quote from: Dan on May 24, 2012, 10:18:48 AM

Not that I'd let that stop me.

then how do you know that

Quote from: Dan on May 24, 2012, 10:18:48 AM

Stop churning for 6 months and it will go back up.

txtmax4 · « **Reply #5 on:** May 24, 2012, 10:25:42 AM »

Since you are new to the credit world and don't really have a history, the likeliness of you repaying loans is basically unknown so the drop in your score represents that FICO (I hope that's where you checked it) is making a safe assessment of what you mean to creditors today. (Not to mention the credit inquiries).
However, once you build a good reputation and your credit lines age, your score will recover.
Do expect your score to be around 750 if you will be playing the CC game often, and do not worry as you will still be within the 2% lowest risk borrowers.

txtmax4 · « **Reply #6 on:** May 24, 2012, 10:27:49 AM »

@ Shmelly: I'ts public knowledge, whether or not one is in that situation.

AsherO · « **Reply #7 on:** May 24, 2012, 10:53:53 AM »

Quote from: txtmax4 on May 24, 2012, 10:25:42 AM

Do expect your score to be around 750 if you will be playing the CC game often, and do not worry as you will still be within the 2% lowest risk borrowers.

It doesn't make sense to me that so few people have decent credit.

txtmax4 · « **Reply #8 on:** May 24, 2012, 10:56:11 AM »

Quote from: AsherO on May 24, 2012, 10:53:53 AM

It doesn't make sense to me that so few people have decent credit.

Take it up with FICO

Yitz · « **Reply #9 on:** May 24, 2012, 10:58:03 AM »

Great question. I had a interesting experience I opened 3 cards in 1 month and my credit score went up from 781 to 784

AsherO · « **Reply #10 on:** May 24, 2012, 10:58:41 AM »

Quote from: txtmax4 on May 24, 2012, 10:56:11 AM

Take it up with FICO

See my (edited) post, I added a chart (from BankRate, a reputable source) for FICO score distribution, and it seems like the 2% number is off.

AsherO · « **Reply #11 on:** May 24, 2012, 10:59:08 AM »

Quote from: Yitz on May 24, 2012, 10:58:03 AM

Great question. I had a interesting experience I opened 3 cards in 1 month and my credit score went up from 781 to 784

Could be improved utilization, or something else.

txtmax4 · « **Reply #12 on:** May 24, 2012, 11:01:35 AM »

Quote from: AsherO on May 24, 2012, 10:58:41 AM

See my (edited) post, I added a chart (from BankRate, a reputable source) for FICO score distribution, and it seems like the 2% number is off.

That seems to differ with the Equifax website, where, last I checked, that was where they placed it at.

AJK · « **Reply #13 on:** May 24, 2012, 12:15:57 PM »

Quote from: AsherO on May 24, 2012, 10:59:08 AM

Could be improved utilization, or something else.

Or it could be the new accounts have not yet appeared on his CR...

AsherO · « **Reply #14 on:** May 24, 2012, 12:55:59 PM »

Quote from: AJK on May 24, 2012, 12:15:57 PM

Or it could be the new accounts have not yet appeared on his CR...

He'd still have the inquiries, which should lower the score, so I'm speculating that there were factors that made it go up.

ae123 · « **Reply #15 on:** May 24, 2012, 02:13:34 PM »

Ok, guys thanks for replying so far.
The consensus seems to be that with playing this game my credit score should hold around 750.
But are there any tips to raise my credit score any higher even while playing the game?

ae123 · « **Reply #16 on:** May 24, 2012, 02:17:07 PM »

Quote from: Dan on May 24, 2012, 10:18:48 AM

It's the inquiries that are hurting you.
Not that I'd let that stop me.

But wouldn't that mean that if I don't stop churning my CS will continue to drop, or will it hold steady at around 750?
Thanks.

Dan · « **Reply #17 on:** May 24, 2012, 02:19:28 PM »

Quote from: ae123 on May 24, 2012, 02:17:07 PM

But wouldn't that mean that if I don't stop churning my CS will continue to drop, or will it hold steady at around 750?
Thanks.

It should hold steady at this point as inquiries can only take off a relatively small amount of points.

ae123 · « **Reply #18 on:** May 24, 2012, 05:03:19 PM »

Quote from: Dan on May 24, 2012, 02:19:28 PM

It should hold steady at this point as inquiries can only take off a relatively small amount of points.

Ok, thanks. I hope you're right. After all, you're the big chief!

Chuck2 · « **Reply #19 on:** May 25, 2012, 12:29:16 AM »

My credit score was 778 3 years ago after playing the game for two years and two F/Rs, 21 inquiries my score was down to 734 now after 7 months with only one inquiry I'm at 764, and looking for some mega offers to start again