Too many new accounts in a short period

Too many new accounts in a short period
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#1

I had a credit score of 545, 550. 555. On April 24 i opened a secure credit card $500 limit/deposit, my credit score increased to 590, 613, 595. On may 1, I got a fingerhut smart account for a credit of $150 My Experian score decreased 12 points to 583. I dont believe it has updated to transunion or Equifax yet. Fingerhut did a hard inquiry.

My question: what caused it to decrease, and a bank said they would give me a credit rebuild loan for at least $1000.
If I get one now, May 31st will this lower my credit score or help it?

Please help!


#2

Welcome, @lesleymaeallen! Glad to have you here in the NerdWallet Community forum!

Hard inquiries can certainly have an impact on your credit score. The impact fades over time, though.

I found this thread that I think is worth reading about the impact of hard inquiries:
https://www.nerdwallet.com/community/t/credit-score-deduction-hard-inquiry/7130

But this NerdWallet article describes what factors affect your credit score, and how much each is weighted:
What Factors Affect Your Credit Scores?

To quote the above article:

The two major scoring companies in the U.S., FICO and VantageScore, differ a bit in their approaches, but they agree on the two factors that are most important. Payment history and credit utilization make up more than half of your credit scores. Focus your attention mostly on those two while keeping an eye on the other factors.

So, while hard inquiries do matter, there are other factors that matter more, and improving your credit score isn’t a sprint, but a marathon. Being consistently responsible over time with spending and paying off debt has been working well for me.

I hope these resources can help you, and I’m sure another Nerd will weigh in soon with even more information you can use. Once again, welcome!

Winslow


#3

I would say about 6-7 years ago my credit was down around the low 600s and i had 10k plus in cc debt. fast forward to better income and timely payments and it went up. My score is 797 about 3 months ago and the highest I’ve seen it is 801 (i don’t check often, habit from when my credit sucked and i didn’t want to deal with reality) I advice contact to https://www.boostcredit101.com/


#4

My FICO credit score was 495 on June 2017. It is now FICO 701, Vantage 643, August 2, 2019. I now have 39 credit cards totaling $157,217 credit limit. November 2018, I only had 3 cards. I put money on each card and paid it off immediately. I never have gone past 2 weeks - each paycheck - to pay my balance to zero. It is one of the most frustrating things to wait for banks to see you pay your bills on time, and before time. Everything about this credit game defies logic, but it is a game, and you have to play within the bounds of their rules. I like to push boundaries, so I try to increase my lines every month, and apply for new cards every month. I have 33 hard inquiries since November 2018, but if I followed the advice of all the youtube videos and only made 1-4 inquiries in 2 years, I would be stuck with only 3 cards still. I was cash only for 9 years, so i have it lodged in my brain that I only spend on my CC what I can payoff immediately from my checking account. I do not spend more than what is in my checking. That is how I keep my utilization at 0%, even though I put thousands through my cards each month. No charge sits unpaid for more than 2 weeks. Hope that helps. I am not a financial advisor. I just didn’t follow the normal advice and have proven that normal advice isn’t accurate.


#5

Wow!

That’s really hard to believe, and it defies all logic from a banks perspective, and your credit score, at 701, isn’t that high. 39 cards with 36 of them issued in the past 10 months also seems very odd. I would think a credit card issuer would see more red flags with you than they see outside of the United Nations. But hey, that’s the way I think. More power to you man.