I currently have 2 credit cards and want to open a Southwest CC, giving me 3. My credit score is 750 and I have never missed a payment. How far down do you think my score will go by opening this card?
Hi jalegn01
A credit score of 750 is ideally a good credit score and so you can easily opt for southwest credit card. However, the credit card company may pull out your credit report to find out your payment history and other details. This hard inquiry may lower your credit score by as much as 10 points. But this should not affect your creditworthiness because a score of 720 and above is considered as very good.
Even if you have applied for Southwest credit card, it may happen that the credit card company may make hard inquiry without your authorization. If you find a hard inquiry in your credit report which has not been authorized by you, it can easily be removed from your report. For this all you need to do is to send a letter to Southwest credit card asking them to remove the listing from the credit report.
Also, Keep in mind that if the new CC has a higher limit it will improve your debt/income ratio. Although, with a 750 score I am guessing you don't need help with that or history.
Hi fireyone
As far as I know, it is not true that higher is your credit score the higher will be the fall in score if there is hard inquiry in your credit report. A hard inquiry reduces credit score by at the most 5 points. Now since applying for new credit constitutes 10% in your credit score and the FICO score ranges from 300 to 850 points, the maximum fall in credit score can be 85 points. Now, this happens only if there is multiple hard inquiries in your report (around 17 to 18 ) and not for a single hard inquiry.
Whenever you apply for a new credit, you automatically authorize the creditor to make a hard inquiry in your report. In other words, signing a credit application authorizes the creditor to pull out your report. Each such credit pull may lower your score by as much as 5 to 10 points normally. However, there are instances when the creditor makes hard inquiry even if you have not applied for a new credit. This happens basically when you are offered a new credit card even if you have not applied for the same. The credit card company pulls out your report, verifies it and then offers you a new card. These unauthorized hard inquiries can be removed from your credit report.
Hi 1002543
Normally, the credit score falls by 5 points due to a hard inquiry, but, I have also come across instances where credit score due to a hard inquiry has fallen by even 10 points. I think it happens when you owe large amounts of debt to creditors and credit card companies when you are applying for a loan. But if you have a good score, I don't think that your credit score would fall too much due to a hard inquiry.
Wonder if this is why? I heard on another post also that the higher your score the bigger the hit. That really surprised me. I would think it would be the opposite.
Anthony!
IME, my score fell 13 pt due to inq. And please I never carry balances more than 1% of available credit.
Amount of points depends on on your score, how many inq.'s one has on his/hers file (when it is first inq usally it is 0 pt. lost) and credit bucket.
Thanks 1002543 for the explanation and I really appreciate you explanation on the factors affecting the score due to a hard inquiry. The explanation that I gave was based on the knowledge which I gathered while going through the web.
As the matter of fact all this "explanations" are nothing more than speculation built on on observation, personal experience and reading. Only Fair Isaac knows the exact answere but they will never reveal it.
I agree, but I think the whole credit reporting deal needs to be revamped, especially for those that have paid the old bills off, either they remove them or have a shorter term that they are on the report.
Let say you lent money to your neighbour, $1000 for 10 mos, $100/mos and he returned money but paid it as $40/mos which took 25 mos instead of 10. For how long are you going to remember it and when you lend him money next time, in 1 year, in 7 years or never again?
Its only three hits per enquiry for credit card application, not 10 or 30. My credit report is 889 which is excellent and I have a total of 12 credit cards that are currently open. I recently applied for my southwest credit card 3 months ago...and just recieved my FREE reward...Vegas here I come
Congrats on your trip and your excellent credit score. This score is really something to be proud of. You need to do everything you can to protect it. Most IDd theifs will take a credit score like that for a ride. In such a short time they can really do damage. Keep checking your score and your report to gaurd against any unlawful doing or bad marks. I really hope you have a great time in Vegas..
It is good to keep many credit cards, but the sad part of the thing is that if you cannot keep track of the payments on these cards and you default any payments on any of these cards, your credit score may come down. Moreover, when you apply for a new credit card, a hard inquiry is made on your credit report which lowers your credit score.
I agree. A person can easily forget a payment if thaey have too many cards opened at one time. I also like to take into account that if a hard time ever hit or you find yourself unemployed wiht out credit card pretection you could easily default since it may be hard to keep up with all the payments. Most people do not need anymmore than one or two good credit cards. I prefer to use the ones you can use anywhere and would avoid in store credits if you feel you are juggling too many accounts.
(LOTS of spam on these forums!! I'll just bypass them) I like giving advice if I've had 'personal experences' on the topics. This way, I know (I hope..anyway) I can help someone. When you apply for credit..anywhere..your Credit score drops a few points. From reading my Credit report in the pst, it seems to drop a fw MORE points if you apply for new CC's. My advcie? Whatever CC's you may have now, just keep paying on them. If you feel like you can't make minimum payments because you have so many of them, there are alot of options you may have. Look into CC consolidation companys, etc..call around and see what works for you. Very important I think!!..the ones that are accredited through the BBB are alot better than those that are not.
How many ing.'s you have on your report.
Your score is pretty high, so you is going to take a hit, like 20-30 points
(MY GUESS ONLY)
Hi jalegn01
A credit score of 750 is ideally a good credit score and so you can easily opt for southwest credit card. However, the credit card company may pull out your credit report to find out your payment history and other details. This hard inquiry may lower your credit score by as much as 10 points. But this should not affect your creditworthiness because a score of 720 and above is considered as very good.
Even if you have applied for Southwest credit card, it may happen that the credit card company may make hard inquiry without your authorization. If you find a hard inquiry in your credit report which has not been authorized by you, it can easily be removed from your report. For this all you need to do is to send a letter to Southwest credit card asking them to remove the listing from the credit report.
That is one thing that I have learned here that I did not know about, contacting the creditor and asking them to remove the hard inquiry.
Good Advice Gn. In any case I don't believe the score would be effectred by as much as 30 points, more like the 10 Anthiny suggested.
In order to see how many that you would have to pull your report to keep an eye on this.
Also, Keep in mind that if the new CC has a higher limit it will improve your debt/income ratio. Although, with a 750 score I am guessing you don't need help with that or history.
The higher score the bigger hit.
Is this true? I never heard of the higher the score the bigger the hit.
Yes it is.
Wow so in other words if my score is 800 and I have hard inquires it would take a bigger hit than someone with a lower score?
That's correct
Doesn't quite sound fair....
Nothing is perfect
Hi fireyone
As far as I know, it is not true that higher is your credit score the higher will be the fall in score if there is hard inquiry in your credit report. A hard inquiry reduces credit score by at the most 5 points. Now since applying for new credit constitutes 10% in your credit score and the FICO score ranges from 300 to 850 points, the maximum fall in credit score can be 85 points. Now, this happens only if there is multiple hard inquiries in your report (around 17 to 18 ) and not for a single hard inquiry.
If a hard inquiry is made in my credit report, how do I know whether it is authorized or not.
Whenever you apply for a new credit, you automatically authorize the creditor to make a hard inquiry in your report. In other words, signing a credit application authorizes the creditor to pull out your report. Each such credit pull may lower your score by as much as 5 to 10 points normally. However, there are instances when the creditor makes hard inquiry even if you have not applied for a new credit. This happens basically when you are offered a new credit card even if you have not applied for the same. The credit card company pulls out your report, verifies it and then offers you a new card. These unauthorized hard inquiries can be removed from your credit report.
Again, Anthony, I have to disagree wit you. I personally lost more than 5 points for hard inq.
Hi 1002543
Normally, the credit score falls by 5 points due to a hard inquiry, but, I have also come across instances where credit score due to a hard inquiry has fallen by even 10 points. I think it happens when you owe large amounts of debt to creditors and credit card companies when you are applying for a loan. But if you have a good score, I don't think that your credit score would fall too much due to a hard inquiry.
Wonder if this is why? I heard on another post also that the higher your score the bigger the hit. That really surprised me. I would think it would be the opposite.
Anthony!
IME, my score fell 13 pt due to inq. And please I never carry balances more than 1% of available credit.
Amount of points depends on on your score, how many inq.'s one has on his/hers file (when it is first inq usally it is 0 pt. lost) and credit bucket.
Wow 13 points..that was quite a hit wasn't it!!!???
wow, that seems like a lot. All those points just for someone poking their nose into your financial business, that stinks.
Thanks 1002543 for the explanation and I really appreciate you explanation on the factors affecting the score due to a hard inquiry. The explanation that I gave was based on the knowledge which I gathered while going through the web.
As the matter of fact all this "explanations" are nothing more than speculation built on on observation, personal experience and reading. Only Fair Isaac knows the exact answere but they will never reveal it.
I agree, but I think the whole credit reporting deal needs to be revamped, especially for those that have paid the old bills off, either they remove them or have a shorter term that they are on the report.
I could not agree more. the credit system does seem quite unfair to honest people trying to make right with past bills.
Let say you lent money to your neighbour, $1000 for 10 mos, $100/mos and he returned money but paid it as $40/mos which took 25 mos instead of 10. For how long are you going to remember it and when you lend him money next time, in 1 year, in 7 years or never again?
Good point you make here 1002 what are all those numbers for anyway? I am curious.
OOps Sorry if this was being nosey. I have just been trying to figure it out. You don't have to tell.
That's OK.
I have to remember this number for work purposes.
hits
Its only three hits per enquiry for credit card application, not 10 or 30. My credit report is 889 which is excellent and I have a total of 12 credit cards that are currently open. I recently applied for my southwest credit card 3 months ago...and just recieved my FREE reward...Vegas here I come
Congrats on your trip and your excellent credit score. This score is really something to be proud of. You need to do everything you can to protect it. Most IDd theifs will take a credit score like that for a ride. In such a short time they can really do damage. Keep checking your score and your report to gaurd against any unlawful doing or bad marks. I really hope you have a great time in Vegas..
It is good to keep many credit cards, but the sad part of the thing is that if you cannot keep track of the payments on these cards and you default any payments on any of these cards, your credit score may come down. Moreover, when you apply for a new credit card, a hard inquiry is made on your credit report which lowers your credit score.
I agree. A person can easily forget a payment if thaey have too many cards opened at one time. I also like to take into account that if a hard time ever hit or you find yourself unemployed wiht out credit card pretection you could easily default since it may be hard to keep up with all the payments. Most people do not need anymmore than one or two good credit cards. I prefer to use the ones you can use anywhere and would avoid in store credits if you feel you are juggling too many accounts.
credit
(LOTS of spam on these forums!! I'll just bypass them) I like giving advice if I've had 'personal experences' on the topics. This way, I know (I hope..anyway) I can help someone. When you apply for credit..anywhere..your Credit score drops a few points. From reading my Credit report in the pst, it seems to drop a fw MORE points if you apply for new CC's. My advcie? Whatever CC's you may have now, just keep paying on them. If you feel like you can't make minimum payments because you have so many of them, there are alot of options you may have. Look into CC consolidation companys, etc..call around and see what works for you. Very important I think!!..the ones that are accredited through the BBB are alot better than those that are not.