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Originally Posted by Peaceful_Warrior
How has this affected your credit rating, as a whole? I noticed that merely getting the card dropped my FICO by 20 points... so I'm guessing I'll take another 80-100 hit when the new balance registers.
But that's just one card....
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I dunno exactly. I'm sure it's dropped a bunch. I am an unusual stoozer in that I don't pay for the opportunity to check my credit score across all three bureaus daily. I just don't see the point. I have tried to arrange my finances to where I hopefully will not need anyone to extend me credit any more. I do check my Equifax credit report at least once a week to make sure nothing untoward has happened identity-theft-wise.
I believe the people on Fatwallet who say one's score will recover and in fact likely be higher at the end of an AOR. In a year or so, I will have made 12 * 6 = 72 additional on-time payments, my credit lines will all be a year older, and I will have paid off over $90,000 in credit card "debt" (the 0% money I borrowed and have stuck in an Amtrust Direct account earning 5% plus). My credit history will be a year older. And I'll have 15 more credit lines than I did before.
I do think that one's existing credit history before starting an AOR will drive how many points one loses temporarily. If you have one credit card that is 2 years old with a CL of $3,000, an AOR will make your score drop more than if you have a longer credit history with more cards and higher limits. I did go through a phase for about two or three years before my AOR where I just applied for cards and increased my credit limits for no real good reason...just a hobby sort of. So I had a pretty good history to begin with.
I do plan to do a second AOR either some time this fall or early next spring, so I will be interested to see what happens then. I expect that the major issuers have already extended me all the credit they're going to, but there are other players out there as well. Also, it is not that hard to get Citi or Chase to issue you a card with a low $500 limit on it. You can then reallocate from another card that has, say, $30K on it. Presto, you're off and running again.
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