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Effects of new credit cards on credit history and score

Experiences and skills ymlulu 260次浏览 0个评论
Usually we have two very different attitudes about credit card: some people indulge in credit cards, to Port Dickson more than 10 credit cards a year; while others gingerly, did not dare to apply for a credit card a year.What credit card are sent to the gift of Angel, or passing evil of Satan do?Today, to analyze for you, get a new credit card for credit report and affect credit scores.

Effects of new credit cards on credit history and score

1. Introduction to credit history and credit scores

In the United States almost everyone dealing with credit records and large loan to buy a House, small to pay water bill per month, all of the detail records on your credit report.Based on your credit report, banks, credit bureaus, depending on the model to give your credit score to determine whether or not you approve your credit cards, loans, and so on.It can be said that a good credit report, in the United States is very important.

In the "overview of credit history and credit score" in the article, I give you some of the basics of credit history and credit score, including:

But, after all, the concept is more abstract, it is difficult to make everyone link analysis of your situation.For example, applying for a new credit card exactly what kind of impact on the credit history?Turn off what would be the effect of a credit card?Also apply for several several months apart and apply to several different?Today, I'll start from the simple case analysis for everyone, opening a new credit card on credit report and affect credit scores.

2. New credit cards and credit reports and scores

For our applicants, apply for a credit card contains the following few steps.For banks, related to each item and credit record.

  • Online/telephone/banking fill in the application form (Bank calls you credit report)
  • Waiting for the results of the Bank after submitting (banks review your credit report)
  • Through your credit card, give you a certain amount (and credit report)
  • You receive a card, then began to use (write your new bank card credit report)

Here, I give out this new card after these four steps, and ultimately impact your score for you.If you are not interested in more in-depth understanding after reading these points is enough:

  • On the whole, your credit score will drop slightly (1 month), rose/flat/falling (1-2 after the billing cycle), rising (long term)
  • Call recording (HP) will reduce the credit Bureau's credit scores, long after the effect is very small, completely disappear after two years
  • The process of reviewing your credit report does not affect your credit score
  • You apply for approval does not affect your credit score
  • New cards are usually need 1-2 billing cycles to appear on credit reports
  • New tabs appear in the report, your average credit period to drop, which will lower your credit score, but after a long credit history has little effect
  • After the new cards appear in the report, your total credit limit increase, which will raise your credit score, but had little effect after high total
  • Long term, since the emergence of the new card, you are paying record will improve your credit score

3. Applications call the credit reporting (Hard Pull)

The vast majority of applicants after the credit card application is submitted, it will be called Bank one or several credit Bureau's credit report to assess your credit rating or score.To decide whether or not to approve your application.So, in General, after you submit an application, you call the credit Bureau's bank records of calls will appear on your credit report (Hard Pull, referred to as HP).

Call recording will certainly make your credit score decrease.No recent loans to people, or only in the United States students who are short term, increase in HP and has little effect.There are two reasons:

  • HP only account for a credit score of less than 10%
  • HP over time increase decrease in two years will disappear completely

So, you don't have to worry about HP on a credit report.10% HP only credit score first, decided to bulk of credit score is the amount of such debt and repayment record on time.As long as you don't arrears in monthly bills too much pay every bill on time, credit scores will continue to rise.Moreover, HP for credit score decrease effect is only temporary, as time goes by, more and more small.After two years at HP, the HP recording directly on the credit report removed, so this is entirely irrelevant.

However, for people who need a loan in the near future, banks are likely to ask you to each HP sources.Is likely to make your loan failures or high interest rates.So, if you plan to buy housing loans, it is recommended you loan within two years before applying for a credit card less, reduce HP on your credit report.

There is also a key, lower credit scores only and HP relating to the credit Bureau.In other words, if the HP in the Experian (EX), then the HP will not be on your TransUnion (TU) have any impact credit scores.So, your HP is the best State evenly in all three credit bureaus, so you will not every credit bureau scores are too low.Some specialized freezing a credit Bureau, on the one hand reduce the credit Bureau's HP, on the other hand banks cannot call that credit Bureau with more HP, can only be called HP less credit Bureau, nature card more easily.Also, one day to apply for multiple cards, seems crazy, but HP is distributed in three of the credit bureaus, banks cannot see your HP each record, will not have any effect on your application.See: credit card application skills AOR

Another point, HP in a very short time (day) may have no impact on your credit score and

So, bottom line:

  • Call recording (HP) will reduce the credit Bureau's credit scores, long after the effect is very small, completely disappear after two years

4. Effect of approval and the results of

Approval process is a computer based on the banks ' own models and extraction of the credit report gives you a credit score is calculated, as long as you credit score higher than their book value, directly to you through.Of course, also have the potential to enter the manual review, an analyst for each item on your credit report analysis, and results are given.In this process, your credit report is already in the hands of banks, they will give you the added contents of the report, but also not rejected your message written credit report.So, bottom line:

  • Approval process and outcome has no impact on your credit score

5. Reported impact of new cards

In fact, from your application to receive the card, your new Bank of credit card has not been reported to the credit Bureau.In your first Bill before the closing of the card that you apply only on the credit history left a HP, so only the HP corresponds to a credit Bureau has little effect on you.After your new report card, (often the first Bill closing or the second Bill after closing), your new card will appear on your credit report, have an impact on your credit score.We can start with short and long term to analyse the impact of the new record.So, bottom line:

  • New cards are usually need 1-2 billing cycles to appear on credit reports, has no effect on your score

5.1 short term impact of new cards

Just appear on the credit report card is often contain two main information: credit history and credit lines.Since this is a new card, of course, zero credit history, credit limit and when you are approved for credit-related.You have an average credit history (the history of all your card/card number), and adds a new card with zero history, equivalent to only increase the denominator average credit histories fell, naturally your credit score to drop.And judging from the total credit limit, your total credit limit is increased (can be thought of as a bank you trust and are willing to lend you more money), so credit scores will rise.

Then your credit score in the short run, what is rising or falling?Two extreme examples

  • Example 1: suppose you have 20 cards, with an average credit history 10, total amount of only $10K, was a 10K amount of credit cards
  • Example 2: suppose you have 1 card, with an average credit history 1, for a total amount of $100k, are granted a 10K credit card

Also 10K line of credit, accounted for a large proportion of example 1, but a card with an average credit history has little effect.So 1 human credit scores may rise.Conversely, 2 human cases after the new cards, average credit history mutation of 0.5 years, upgrading from lines and little, so his score should be reduced.So, it's hard to tell on a new credit card credit report for you on the impact is positive or negative.For most people, the new account will still tended to drop in the short term.However, if your credit history is long enough, it had little effect.

Therefore, these two sentences:

  • New tabs appear in the report, your average credit period to drop, which will lower your credit score, but after a long credit history has little effect
  • After the new cards appear in the report, your total credit limit increase, which will raise your credit score, but had little effect after high total

5.2 the long-term effects of the new card

From a long-term perspective, new cards for credit history and credit scores is to have a positive effect.Of course, if you are paying, the normal use of credit cards.Each new card occupies a place on your credit report, and provides records of arrears and timely payment records each month, which accounts for credit score 65%!Look well, therefore, is the best way to improve a credit score card.Of course, if you have more than 20 cards, a card payment records, natural effect is much smaller.So, bottom line:

  • Long term, since the emergence of the new card, you are paying record will improve your credit score

6. Summary

Analyzed in detail in this paper after you apply for a new credit card, your credit report and your credit score will change.Summed up: your credit scores will decline slightly (1 month), rose/flat/falling (1-2 after the billing cycle), rising (long term).Here is entirely in accordance with the principle analysis of credit reports and scores, if you have a deep need for an understanding of credit scores and credit history, see:

In fact, new credit cards have an impact not just for credit reports and credit histories, in fact the biggest impact lies in our own, on this subject for my next article.Please look forward to the next article:

  • Murder caused by a new credit card

 

 





Effects of new credit cards on credit history and score
Effects of new credit cards on credit history and score
Effects of new credit cards on credit history and score
Effects of new credit cards on credit history and score

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