Credit Cards / Building Credit score in the US
#16
Re: Credit Cards / Building Credit score in the US
One thing to watch out for / think about.
We started with a secured card and then, over time, migrated to 'real' cards. As part of that process we freed up some of the cash securing the original card, reducing the credit limit on it. Last time I looked our credit report in respect of that item showed a limit of X and a maximum blance of 2X - the new, lower limit was used but the maximum balance was from when the limit was higher. On the raw numbers shown it looks like we went over the limit quite substantially. I have no idea if this will have impacted any score calculation but figure it can't have done any good!
Anyway, our current scores are fine
We started with a secured card and then, over time, migrated to 'real' cards. As part of that process we freed up some of the cash securing the original card, reducing the credit limit on it. Last time I looked our credit report in respect of that item showed a limit of X and a maximum blance of 2X - the new, lower limit was used but the maximum balance was from when the limit was higher. On the raw numbers shown it looks like we went over the limit quite substantially. I have no idea if this will have impacted any score calculation but figure it can't have done any good!
Anyway, our current scores are fine
I apply for anywhere between 10-15 cards each year and seldom get declined.
#17
Re: Credit Cards / Building Credit score in the US
I don't know for sure but I think this might not matter. My credit limits for individual acccounts go up and down like a bride's nightie during the course of any given year as I trade off limits with credit card company's approval teams in order to get new cards approved. I also have some high balances recorded as well I work to meet sign-up bonuses on the cards - so if this was an issue I think it would have jumped up and bitten me before now.
I apply for anywhere between 10-15 cards each year and seldom get declined.
I apply for anywhere between 10-15 cards each year and seldom get declined.
Canceling a credit card can also reduce your credit score if you don't pay off balances monthly or if a new credit is not acquired to replace the cancelled credit card since the debt to credit limit will increase permanently if the same balance is maintained.
#18
Rootbeeraholic
Joined: Aug 2009
Location: Houston, Tx
Posts: 2,280
Re: Credit Cards / Building Credit score in the US
I don't know for sure but I think this might not matter. My credit limits for individual acccounts go up and down like a bride's nightie during the course of any given year as I trade off limits with credit card company's approval teams in order to get new cards approved. I also have some high balances recorded as well I work to meet sign-up bonuses on the cards - so if this was an issue I think it would have jumped up and bitten me before now.
I apply for anywhere between 10-15 cards each year and seldom get declined.
I apply for anywhere between 10-15 cards each year and seldom get declined.
It has a much more profound affect when you have a low credit limit. I spent much of the first year of having a secured credit card with my credit score fluctuating up and down every time I used the card. Now, I have a much higher total credit limit it hardly affects it. There are certain percentages ranges of credit to debt ratio that they use and within those ranges it doesn't affect your credit score. I think 90% or above is considered maxing out your credit.
The small changes don't appear to have any longstanding affect on the credit score though. I also think it depends on if your score is checked during that time - I monitor my score quite closely so see these changes but I suspect if I didn't they wouldn't appear.
Tonrob - How do you apply for so many cards without it killing your credit score due to hard hits on your credit? Since each hard hit lasts two years - this has actually limited how high my credit score can go, it hasn't made it a bad score however.
#19
Banned
Joined: Apr 2013
Posts: 5,154
Re: Credit Cards / Building Credit score in the US
Just as a quick tip, i'm sure others are aware of this, but i'll list in just in case they're not: if you're an AMEX customer in the UK for >=12 months, you can simply switch your account (along with its credit history) to AMEX, US.
I'm going to do this with my Platinum AMEX card when I relocate in a months time. The thought of having an inferior credit card in the US, when I am used to the very best CC's here in the UK is something I don't want to even think about.
I'm going to do this with my Platinum AMEX card when I relocate in a months time. The thought of having an inferior credit card in the US, when I am used to the very best CC's here in the UK is something I don't want to even think about.
#20
Just Joined
Joined: Mar 2013
Posts: 13
Re: Credit Cards / Building Credit score in the US
Just as a quick tip, i'm sure others are aware of this, but i'll list in just in case they're not: if you're an AMEX customer in the UK for >=12 months, you can simply switch your account (along with its credit history) to AMEX, US.
I'm going to do this with my Platinum AMEX card when I relocate in a months time. The thought of having an inferior credit card in the US, when I am used to the very best CC's here in the UK is something I don't want to even think about.
I'm going to do this with my Platinum AMEX card when I relocate in a months time. The thought of having an inferior credit card in the US, when I am used to the very best CC's here in the UK is something I don't want to even think about.