Credit score tanking after applying for too many cards

[newdanfan]

I took the advice on the board and in the last 5 months I've applied for Starwood and Chase cards.  I had 2 hits in August from Starwood and 2 hits over November and December from Chase.  I'm not sure how the 2 hits came from Starwood since I did a 3BM.  For Chase, I first got denied, and then I get 4 cards out of the 4BM method on only 1 hit in December! 

So I have 4 hits in the last 5 months.

I've been paying the cards off multiple times a month in full.

However, before I started my credit score was slightly above 800.  Now it's at 758, which is a significant drop. 

I understood from Dan that applying for cards isn't what affects your credit score, it's more about not carrying a balance and paying all the cards in full. 

Any ideas about why my score is tanking?

I've already earned 105,000 points from Starwood, almost at 98,000 on Chase, getting 2 free Hyatt nights, and 50,000 Southwest.  And I'm ready for applying for new cards!  But I'm afraid to keep on applying because I don't want to lower my credit score any more. 

Any advice here?

[george]

I took the advice on the board and in the last 5 months I've applied for Starwood and Chase cards.  I had 2 hits in August from Starwood and 2 hits over November and December from Chase.  I'm not sure how the 2 hits came from Starwood since I did a 3BM.  For Chase, I first got denied, and then I get 4 cards out of the 4BM method on only 1 hit in December! 

So I have 4 hits in the last 5 months.

I've been paying the cards off multiple times a month in full.

However, before I started my credit score was slightly above 800.  Now it's at 758, which is a significant drop. 

I understood from Dan that applying for cards isn't what affects your credit score, it's more about not carrying a balance and paying all the cards in full. 

Any ideas about why my score is tanking?

I've already earned 105,000 points from Starwood, almost at 98,000 on Chase, getting 2 free Hyatt nights, and 50,000 Southwest.  And I'm ready for applying for new cards!  But I'm afraid to keep on applying because I don't want to lower my credit score any more. 

Any advice here?

my understanding is that inquiries (hard pulls) are what lowers your score temporarily, and they affect your score for approx six months. You should see your score go up again after six months have passed since your apps.
Furthermore, make sure you don't pay off your balances in full before statement closes - leave a small amount to pay after statement closes. They want to see you are using your credit and paying it. If every month your statement is for $0.00, you are not gaining nearly as much as you could in terms of your credit score. keep a small balance on each card till after statement closes, then pay it off.

[Kn9ght]

What is your AAoA? People with new credit history will take a bigger hit after AOR than someone with longer history AFAIK

[newdanfan]

my understanding is that inquiries (hard pulls) are what lowers your score temporarily, and they affect your score for approx six months. You should see your score go up again after six months have passed since your apps.
Furthermore, make sure you don't pay off your balances in full before statement closes - leave a small amount to pay after statement closes. They want to see you are using your credit and paying it. If every month your statement is for $0.00, you are not gaining nearly as much as you could in terms of your credit score. keep a small balance on each card till after statement closes, then pay it off.

Thanks for the advice.

What is your AAoA? People with new credit history will take a bigger hit after AOR than someone with longer history AFAIK

I don't know what my AAoA, but I have a long and strong credit history. 


Any other ideas for why it dropped so much?  And how long I should wait before applying for new cards?

[HelpMe]

I don't know what my AAoA, but I have a long and strong credit history. 

If you have a long credit history with a FICO score of 800 no way should your score have dropped that much. Something else must be in the mix.

[btab]

lets say someone has a credit line of 10k and spends around 3k in the first two weeks of the month. should he wait til the statement closes to pay off the the 3k or should he pay like 2k before the statement closes and then after his statement posts pay the remaining 1k?

based on what I read above it seems that one should do the later; however, can anyone explain to me why this is better than the first option?

[Fan of Dan]

If you have a long credit history with a FICO score of 800 no way should your score have dropped that much. Something else must be in the mix.

The average age of the cards will have dropped which may add to the dip, though hard to imagine that being the whole reason.

[HelpMe]

@btab - If you have a thin credit file with a short history I would pay it off before the statement closes. If you have a long credit history it does not matter one way or the other.

[123ablack]

The average age of the cards will have dropped which may add to the dip, though hard to imagine that being the whole reason.

+1 IMO

[newdanfan]

If you have a long credit history with a FICO score of 800 no way should your score have dropped that much. Something else must be in the mix.

The average age of the cards will have dropped which may add to the dip, though hard to imagine that being the whole reason.

I can't imagine what else it could be.  A few months ago, my score was 801.  I applied for 6 cards since August, and my score is now 756.  Haven't paid any cards late - always pay early.  Even started paying early, as recommended on the forum.  The only change has been the new card applications.

Any other ideas?

More importantly, is it a bad idea now to apply for new cards.  I've already received the full sign up bonuses on each of the ones I received, and I'd like to apply for some new good ones.  Any advice on this would be really appreciated.  Thanks in advance!

[HelpMe]

How many cards do you have? How many years is the oldest card? Any balances reporting to the CRA's?

[3ZeroT]

I can't imagine what else it could be.  A few months ago, my score was 801.  I applied for 6 cards since August, and my score is now 756.

756 is still a great score but you don't get to keep a near perfect 800+ score by opening that many new revolving accounts in such a short timeframe.  In my opinion the score drop is likely explained by the new accounts and the inquiries plain and simple.  Should be nothing to worry about but you may want to throttle back a bit on applications in the short term.

[Dan]

Where are you seeing these scores?

[newdanfan]

How many cards do you have? How many years is the oldest card? Any balances reporting to the CRA's?

I'm not sure exactly how many I have open - maybe around 15 or so?

756 is still a great score but you don't get to keep a near perfect 800+ score by opening that many new revolving accounts in such a short timeframe.  In my opinion the score drop is likely explained by the new accounts and the inquiries plain and simple.  Should be nothing to worry about but you may want to throttle back a bit on applications in the short term.

Ok, thanks for the advice.

Where are you seeing these scores?

I was seeing them on the Citi Identity Monitor, I signed up for the 30 day trial for $1.  Dan, would you recommend not applying for anything new right now?  If so, for how long?  I already received all the sign up bonuses on my recent cards, and would like to sign up for a few more or churn the ones that I have.

Also, do you have advice as to where I can track these points, specifically the mileage points that are not showing up on Awardswallet anymore?

[churnbabychurn]

if your not looking for a mortgage in the near future then why worry. Anything above 720 is enough for churning IMO

[JayBerns]

Check again after 6 months and it should go back up.

@Dan:  Didn't you post recently that Citi ID Monitor is FAKO not FICO?