Getting points back on credit score after getting new cards
 

Since I am new to this stuff I understand credit takes a hit I performed three new cards 14 pt hit on my score how long does it take to get those 14 points back if I have no new inquires on my name.

Thanks guys

I read not to long ago that you got a 4 pt hit per inquiry and that it takes up to six months to recoup. I am intrigue with the subject and would like to get some factual evidence.

A couple questions for you.
Did your score drop 14 pts at once or it drop a couple points each time?
Can you give the timeline of the applications and the score drop?
Thanks

People are way too concerned with credit score. Most lenders have confirmed that credit score is only a small part of determining creditworthiness these days.

Good luck with that. None of the credit rating agencies really publish criteria like that.

There are so many factors that go into credit scoring and like the previous poster mentioned, good luck getting some info on that.

In the spring of 2008, I refinanced 2 mortgages, and after the mortgages closed, I applied for several credit cards (high limits from credit unions), etc. My score dropped about 40 pts from 720-760 (742 mid bureau) but my score almost fully recovered within 6 months. The only reason my scores didn't fully recover were that some old positive trade lines dropped off due to it being over 10 years after the accounts were closed. That dropped my AAoA (average age of accounts) alot. That affects FICO's.

I won't be able to refinance my rentals in the near term due to the 70% drop in values from 2006 to 2010. :mad: I am keeping them because I want to be responsible and the rents pay the mortgages.

Back to the topic at hand. The inquiries (my estimate) only dropped my score about 3-4 pts/inquiry. I just applied and got approved for 2 AA credit cards @75K bonus miles each. With those bonuses, it is IMHO worth taking a few point hit on FICO to get those cards. (of course, I assume that one doesn't need to buy a house or refinance--in that case, it may be prudent to hold off applying until after closing).

Answers to Questions about How Inquiries Affect FICO Score
 

From FICO:
How much will credit inquiries affect my score?
The impact from applying for credit will vary from person to person based on their unique credit histories. In general, credit inquiries have a small impact on one's FICO score. For most people, one additional credit inquiry will take less than five points off their FICO score. For perspective, the full range for FICO scores is 300-850. Inquiries can have a greater impact if you have few accounts or a short credit history. Large numbers of inquiries also mean greater risk. Statistically, people with six inquiries or more on their credit reports can be up to eight times more likely to declare bankruptcy than people with no inquiries on their reports. While inquiries often can play a part in assessing risk, they play a minor part. Much more important factors for your score are how timely you pay your bills and your overall debt burden as indicated on your credit report.

From FICO Support Center
How long do inquiries stay on my credit report?
Inquiries remain on your credit report for two years, although FICO® scores only consider inquiries from the last 12 months. FICO scores do a good job of distinguishing between a search for many new credit accounts and rate shopping for one new account.

I know I have a good rating
started 770 after cit per. and spg per dropped to 761 now did a citi bus. so I am guessing the worse 756... Yes I know that is a great score and I have no worries but like to keep it as high as I can so when I get the next big 100,000 mile card it stays great..

Thanks for everyone giving me their own advice and experience.

Applying for a Mortgage? Avoid New Card Applications.
 

I applied for a mortgage last week, with all FICOs 760+. A couple of days ago the mortgage broker asked for a written explanation for why so many credit inquiries in the last 90 days...that would be credit card applications and asking 4 mortgage brokers for rate quotes.

I don't yet have a firm commitment that the mortgage will be approved.

My takehome is: No matter how many bonus miles and points you will miss, and no matter how good your credit score is, don't apply for credit cards within 90 days before applying for a mortgage :(

UPDATE WITH ANOTHER CAVEAT: Do not transfer excess cash from one checking account to another (in my case, to BankDirect for the AA miles) shortly before applying for a mortgage.

Yeah, applied for the SPG's knowing full well that a refi was coming this month or next. But now the CitiAA cards are out, I'm kicking myself for not holding off of the SPG's

Having to explain credit inquiries getting mortgages are quite normal. I had to do my share of explaining getting mortgage loans. It is worse on rental properties that I'd got loans on. Underwriting may ask to explain "obvious" stuff that seems to not be needed to the average person. Just explain away even if it seems obvious, stupid, redundant, etc. Normal protocol for mortgages, even more so in this credit crisis.

Best of success in getting the loan.

I've been kind of concerned about the same thing. I've gotten 4 new CCs in the last 3 months and I know my FICO has dropped a little bit. But I use a credit monitoring site and their analyzer said that my FICO scores will actually improve after 12 months of on time payments. My feeling is the drop is only temporary and as long as you pay on time (PIF preferred), keep util low, and don't apply for more credit you should be fine in about 6 months or so.

Dude, once your FICO is past about 720-730 it starts to become irrelevant.

But to answer your question, time is the only thing that will improve your score once you get into the perfect credit realm.

High credit lines, low to no utilization, long credit histories, no new credit inquires. Basically, pay off your debt on time and wait. With time, your FICO score will increase.

What does PIF mean?

Thanks.

Pay In Full.