Author Topic: Credit Card Score Quest(ions)  (Read 1740 times)

Gatsby

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Credit Card Score Quest(ions)
« on: March 16, 2014, 11:21:19 AM »
I am new to the CC world and so far am greatly enjoying all of the benefits associated with responsible use.
I am beginning to learn a lot more factors that can affect credit card score but am still left with several questions that I would love feedback on from people's personal experience/ knowledge.

I have 3 cards in total, all under a year since opened, and each has a different limit/ bonus point structure.
One of the factors that has the biggest affect on score is utilization, so for that reason I try and stay between 10%-20%
most often even much less and I only carry a balance on my 0% apr card for 16 months.
I have a few purchases that I would like to make on my 0% card but this will make my utilization for that card around
30% buy only for 2 weeks, to which it will go back to about 15% after that.

Will this cause a significant or any decrease in my score? My history isn't that long and I will likely be applying for a mortgage a little over a year from now.

Lastly, would opening another card in about 6 months from now have a significant negative impact on my score?
   



tomsang

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Re: Credit Card Score Quest(ions)
« Reply #1 on: March 16, 2014, 11:53:17 AM »
As the old saying goes, "Ask for a loan/credit when you don't need it." 

If I was buying a house in a year, I would obtain LOC's & Credit Cards now.  Your credit score will drop over the next few months but potentially will be higher when you apply for a mortgage in a year. 

Your credit score is based on utilization divided by capacity.  By taking a hit now to get your capacity up, your score should improve by the time you ask for a mortgage as long as your utilization doesn't go up.

The age on credit is a factor as well, but if you have limited to no credit then it is what it is.  I would not open any credit within 4 months of applying for credit.

Good luck!

Gatsby

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Re: Credit Card Score Quest(ions)
« Reply #2 on: March 16, 2014, 01:01:29 PM »
* Regarding credit utilization- I am wondering if being at 30% of utilization on one card (only 15% out of all 3 cards combined)  for 2-3 weeks would be harmful to my score. After these 2-3 weeks my utilization on that card will go back down to around 10-15% where it normally stays at.

@tomsang- all great advice, thank you.

Gimesalot

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Re: Credit Card Score Quest(ions)
« Reply #3 on: March 16, 2014, 02:53:39 PM »
I find that Creditkarma.com (not affiliated), is a great site for questions like this.  You can look up an estimate, which in my case has been really really close, of your credit score.  Also, it has detailed explanations of each component of the credit score.  My husband and I used their "credit simulator" to see the impact of different credit scenarios, before we applied for a mortgage.

Badass by 41

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Re: Credit Card Score Quest(ions)
« Reply #4 on: March 16, 2014, 03:17:36 PM »
+ 1 for Creditkarma.com (not affiliated).  Like, Mint.com, you have to ignore the up-sells, but the service is remarkably accurate and FREE.  The credit simulator is an excellent feature for the kinds of questions in the OP.

Good luck!