Credit score question?

Question

I got a couple of credit cards a few days ago,I haven't even used them yet and my score dropped like 60pts?? Why??

Answer 1

10% of your FICO score is based on inquiries into your credit history for purposes of granting you credit that you've applied for. It won't help to close the extra cards; the damage - the hard inquiries - has already been done.

Inquiries remain on your credit reports for up to 2 years, and each inquiry does cost you FICO points. But, you'll gradually get those points back over the next two years as those inquiries age, even before they completely fall off your credit report.

In the meantime, take advantage of the 35% of your credit score that is devoted to payment history. Make small, NECESSARY purchases on those accounts and pay the cards off in full each month, every month, without a miss. Fact: you will NOT earn extra FICO points for carrying a balance and thus paying finance charges. You just have to make a purchase and pay it off on time.

On a card, do not run up a balance of more than 30% of the credit limit. This is called credit utilization percentage, and it's worth 30% of your FICO score. Thus, if you have a credit limit of $2000, you can hurt your score if you run up a balance of more than 30% of $2,000, or $600.

You can educate yourself further by going to myFICO.com and reading the following two articles:

What's In Your Score

http://www.myfico.com/CreditEducation/WhatsInYourScore.aspx

What's Not In Your Score

http://www.myfico.com/CreditEducation/WhatsNotInYourScore.aspx

Please vote: Did this help?

Answer 2

i have 20 credit cards, your points did not go down because of an assumption!!! your score went down because of inquiries into your credit. To add like these other two people have: i have balances on 15 of my 20 cards, never paid late and when i pay, always over the minimum. my credit scores, all 3 are in the 700's and continues to rise on a monthly basis, even with 1 derog from 6 years ago.

Answer 3

Don't worry; your score was impacted by the credit card companies asking for your information, but as long as you use your cards responsibly your score will go back up. I only have one credit card that's been activated for years [I never planned to use it but activated it in case I have an emergency and need a line of credit]; I've literally only used it once, and I paid the amount in full by the minimum payment due date. Because it just sits there and I've never had a late payment, my credit score has been going up and they recently raised the credit limit on the card by $1000. I'd definitely suggest having an activated unused card to anyone who has the self-control not to rack up a bunch of purchases; apparently it's great for your credit score.

Answer 4

Because whenever a credit card is issued in your name, it is assumed that you'll use them thus the drop in credit score. My suggestion is have only one card and return the rest.

Answer 5

Because whenever a credit card is issued in your name, it is assumed that you'll use them thus the drop in credit score. My suggestion is have only one card and return the rest.

hahaha....copy paste...give the other guy ten points....

Answer 6

start using them a lil, like 20 here and 50 there.. and when u get a new card it goes down a little til u start using them..