I have a bad credit. recently i got approved by 2 new credit card companies..one company reported to credit bureau abt my payment on JAN 2007. my score was around 623. another credit company reported to credit bureau last week. the score dropped from 623 to 537 :0. unbelievable. i thought the score will increase.. how come the score got reduced... any idea?? .P.S: 2 new credit card companies which i opened are in good condition.. i'm paying as agreed.. i opened both of em on DEC 2006.
2007-03-23 04:39:40 · 8 answers · asked by mahesh m 1 in Business & Finance ➔ Credit
Applying for credit drops your credit score... every time you get a new card your credit score will drop and if you apply several times in a short-period of time (less than one year) it will hurt big time...
Basically, by shopping around for credit your are giving a signal to the credit market that you need credit to go own and that your finances are in trouble. Off course this does not need to be true but it is the message that you convey to the credit companies.
Furthermore, a payment history of 2-3 months is nothing, Credit companies want to see a long (the more the merrier) re-payment history.
If you want your score to go up you should stop getting credit cards and pay all the balances in them, that way you start improving your credit score... but it is a long process so do not dis pair.
Best of luck,
2007-03-23 04:49:25 · answer #1 · answered by Quilla 2 · 0⤊ 0⤋
Hello there, I was on the same situation before. Sometimes having too many lines of credit can be viewed as a liability. IE you could go and run up 5 or 6 different cards and suddenly be in 27,000 dollars in debt. I had the same problem before.
Did you get your credit report from the three major credit reporters? Your credit should not drop, unless you did not pay a previous bill from long ago and it just popped into your credit file. It did to me, after 3 years!!!I think you should order your credit history and fico score. I did and I wasn’t too happy!!
Applying for credit drops your credit score... Even if is for a new phone number. Or what ever they want you to do. Every time you get a new card your credit score will drop and if you apply several times in a short-period of time (less than one year) it will hurt big time... I did it for my house oil, telephone, new bedding etc.
Basically, by shopping around for credit or asking for credit your are giving a signal to the credit market that you need credit to go own and that your finances are in trouble. Off course this does not need to be true but it is the message that you convey to the credit companies
If you want your score to go up you should stop getting credit cards. Even if you paid them and you were late you credit score won’t go up. I have been trying and I still can get my credit score up. My lawyer told me that it takes 7 years to clear all your credit history. So good Luck.
2007-03-25 19:54:48 · answer #2 · answered by star 2 · 0⤊ 0⤋
Sometimes the more credit cards you have makes your credit score lower because you are at a higher risk. They seem to take in account your overall balance and your credit limit. That is why I am trying to not only pay my minimum on my credit cards but pay them off and also cancel them. I want to have 1 or 2 major credit cards only. I learned even when the credit cards are paid off if the account is open they still consider it a risk because you can use that money. Its so confusing!
2007-03-23 12:38:23 · answer #3 · answered by mizzmaya79 2 · 0⤊ 0⤋
It just takes time. Two cards are just the right amount to have as you have to use credit to get credit. That thing about open credit lines is bull if you only have two.
It takes time as the credit companies want to see if you are just opening up a couple of lines or if you are going to open bunches because you are in trouble. So relax and don't freak out about it or listen to most or the stuff on the net. After awhile call the card issuers will up your limit and your score will rise...... slowly.
2007-03-23 11:58:15 · answer #4 · answered by jackson 7 · 0⤊ 0⤋
Did you get your credit report from the three major credit reporters? Your credit should not drop, unless you did not pay a previous bill from long ago and it just popped into your credit file. I think you should order your credit history and fico score. Good luck!!!!
2007-03-23 11:48:05 · answer #5 · answered by Sumerblue67 1 · 0⤊ 1⤋
sometimes having too many lines of credit can be viewed as a liability. IE you could go and run up 5 or 6 different cards and suddenly be in 100,000 dollars in debt.
2007-03-23 11:43:43 · answer #6 · answered by Louis G 6 · 0⤊ 0⤋
Now you are in debt. Credit score also goes by debt to income ratio. This simply means that your monthly debt is too high for your income.
2007-03-26 13:27:05 · answer #7 · answered by kmf77 3 · 0⤊ 0⤋
I bet you are looking at the scores from 2 or 3 different agencies, not the same one.
My scores range from 680 - 711. However, with the same agency, it remains the same.
2007-03-23 11:50:11 · answer #8 · answered by Anonymous · 0⤊ 0⤋