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Yield chasing and credit ratings
Old 11-30-2018, 10:57 AM   #1
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Yield chasing and credit ratings

For those of you opening new accounts in search of a couple of basis points or new account bonuses, have you noticed a hit to your credit rating?


I'm joint on my Dad's account so that I can pay his bills. He lost his check book 3-4 times last year, which required closing that account and re-opening new ones. A month later my FICO is down for opening too many accounts (don't remember the exact wording).


Just curious if those hopping banks also monitor their credit score and if you see a hit.
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Old 11-30-2018, 11:06 AM   #2
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I haven't done much churning this year, but last year, I opened 4 new cards. Each time, I took a hit of about 5-8 points but it would rebound within a month or two.

My score has remained in the 810-820 range for a while until recently when we sold our home. When it sold, the HELOC was closed (but zero balance) and the score took a 20 point hit. Within a month it rebounded back and has settled in at the 835-840 range. There was a recent inquiry for starting cable internet, but there was no hit. Also, I have not noticed any inquires or score hits for any account opening bonuses (banking products that aren't credit cards).

I really think most of the fluctuations make no sense, at least to me. As long as it stays over 800, I am happy (for insurance purposes, mainly).

Edit: We carry no debt. I have 14 open credit card accounts (but only use 3 as a course of habit), but pay the balances off a couple of days before the statement issues, so I rarely show a balance on any account.
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Old 11-30-2018, 11:34 AM   #3
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Originally Posted by ExFlyBoy5 View Post
I haven't done much churning this year, but last year, I opened 4 new cards. Each time, I took a hit of about 5-8 points but it would rebound within a month or two.

My score has remained in the 810-820 range for a while until recently when we sold our home. When it sold, the HELOC was closed (but zero balance) and the score took a 20 point hit. Within a month it rebounded back and has settled in at the 835-840 range. There was a recent inquiry for starting cable internet, but there was no hit. Also, I have not noticed any inquires or score hits for any account opening bonuses (banking products that aren't credit cards).

I really think most of the fluctuations make no sense, at least to me. As long as it stays over 800, I am happy (for insurance purposes, mainly).

Edit: We carry no debt. I have 14 open credit card accounts (but only use 3 as a course of habit), but pay the balances off a couple of days before the statement issues, so I rarely show a balance on any account.
Same thought process, as long as our scores stay over 800.
I actually pay off the balances on the first of every month, but have the statement period run through the 4th of each month, coz I heard that having a small balance is better than no balance.
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Old 11-30-2018, 11:40 AM   #4
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...I heard that having a small balance is better than no balance.
I don't know. Right now, my report show balances totaling $14 on two cards, and a score of 838. Some months it will be $0, but usually it will be between $20-$200 and it doesn't affect the score too much. Then again, it shows that my available credit across all cards is $208,600...so I don't think $14 or even $1000 would make a big difference.
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Old 11-30-2018, 11:47 AM   #5
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I don't know. Right now, my report show balances totaling $14 on two cards, and a score of 838. Some months it will be $0, but usually it will be between $20-$200 and it doesn't affect the score too much. Then again, it shows that my available credit across all cards is $208,600...so I don't think $14 or even $1000 would make a big difference.
Okay then, but as you stated it could be your large available credit aspect.
There was talk in recent years of the credit agencies starting to count the available credit balance against one's scores vs. it currently helps greatly in usage percentages, but it has not been implemented.
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Old 11-30-2018, 03:13 PM   #6
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According to Credit Karma these are the things that impact your score:

High Impact
Payment history
Credit use - amount used vs amount available
Derogatory remarks

Medium impact
Credit age

Low
Total accounts
Hard inquires
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