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Softball1974

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Made the mistake of opening 2 credit cards and 1 store card at one time
I have been working hard to build credit and had it at between 690-710 depending on site. The 2 credit cards I had have horrible interest rates and low limits ($1500 on one and $500 on the other) so I decided to get two new cards that I was offered 0% and $3000 limits on both. I just opened them a week ago. I've never been late on my payments including a mortgage, personal loan, car loan and two credit cards.

My credit according to this site is now 651 for transunion compared to 689 when I applied for the cards!! How do I build this back up quickly? Should I cancel the new cards? They were supposed to help and not hurt. I should have done one at a time but I was trying to replace the two I had. Now I have all of these cards and was told not to cancel the other two since they are my oldest ones. I have no balance on my cards as I pay them off each month.

Please tell me the best way to increase my credit after having it drop so drastically.

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Definitely do NOT close the your cards. All in all they will help your score, but you will have to just accept the temporary hit. No matter if it was one or not, everything you do will hurt your credit for an initial time period. The biggest hit your credit just took was 3 hard inquiries, 3 inquiries all within the last month is a very big deal. Just know that they stay on your credit for 2 years; however, they do not have an effect on your score after 12 months, also know that as each month passes they hurt even less, so the older those 3 hard inquiries get you will see your score go back up. The new $6,000 credit line (plus the store card line) is going to be a big help to your credit score, same with the amount of open accounts. Make sure you use all of your credit cards each month (not your store card, just use then when you need), just go buy gas or groceries on them once a month and pay them off in full once your statement posts. This will lead to 4 on-time payments each month from just your credit cards (plus another during those times you use your store card). Be patient, the cards will help your credit, you just have to let those hard inquiries cure themselves and you will be doing much better.

Reply by
Softball1974

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Thank you very much! I actually subscribe to Credit Check Total and check my credit report and scores frequently and the odd thing is that as of yesterday if is stating my credit score is 695 and I went on myfico.com to check the FICO score and it has my score as 701 but the report I got directly from Transunion had 651. All three had the new inquiries and new accounts on there but I'm getting different scores from each.

I set up all 4 cards to have something charged to it monthly, my cable bill on one, insurance on another etc. and I set up automatic bill pay for each to where it pays the account balance each month. This way I am continually using them but am keeping my debt to credit ratio low.

I could kick myself for doing that, I should have staggered it and known better, but in time as you said, it will balance itself out.

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