Raising my FICO score?

Question

My score was 700. Transunion stated one way to raise it was to obtain a mix of credit cards ( ie Dept store, gas etc instead of just Visa/MC. So I acquired a BP amd Home Depo within 1 month and my score dropped over 50 points. Transunion now states I got them in a too short period of time. My question is 2 fold. How long should it take for score to get back to 700 and/or if I cancel these 2 cards now will my score immediately go back to 700???

I have a MC and VISA combined limit of 10,000. I pay them off every month. Also have a car 5 yr car loan with 2 payments left. No collections etc

Answer 1

To obtain a line of credit/loan,( ie: credit card, car loan, bank loan, etc.) The retailer will run a credit check. Every time your credit is run.....EVERY INQUIRY, it removes 2 points. For instance, you give your info to a car dealer.....they run it through 5 banks to see who can do the best for you......that process, regardless if you take a loan, will cost you 10 points (5 inquiries x 2 points=10 points off your credit score). Consider them inquiry points. But those points do come off your credit score. The good news is, the inquiry points usually are restored quarterly through out the year. If this is hard to understand, my apologies. The best way to find out is talk to a great lender....especially a lender for homes, since a home loan is so hard to get....the lender wants your business and will want you to have a great score so they can make their commission. They will you give you great tips and can help you raise your score quickly and efficiently. Just know that any score over 750 is incredibly awesome and any business will be MORE then happy to have you as a barrower/customer and supply you with the best rates.

Answer 2

Absolutely not. First opening new accounts means you are applying for new accounts. Anytime you apply for a new account an inquiry will show up on your credit report. Those are going to hurt you. Also never charge more than 20-30% on any open cc account because that will also lower your scores. Last but not least the only thing that will build your scores is building credit with open revolving accounts over 24 months. Dont forget there are three credit agencys (Transunion, Experion, and Equifax) All three use different formulas and calculate different scores. Its good to have open accounts to build credit history but too many will eventually hurt you. Having 4-6 revolving accounts should suffice.

Answer 3

Your score dropped because each card pulled a credit report. Your score should rebound shortly. Canceling will not get you back those points.

Are you carrying any balances on those credit cards? The ratio of debt to available credit limit ratio is a big part of your credit score. Keep the debt below 30% of the limit -- paying the cards in full every month is even better.

Are you sure that's a FICO score you got from Transunion. They have their own scoring system and is not FICO.

Answer 4

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