Posted on March 2, 2010.
Does opening a new credit card hurt my ability to incur student loans? I entered law school in the fall and will need to incur student loans. Although I always pay my credit card on time and I never missed a payment, my credit card company douchely raised my interest rate twice. He rose from 9% to 16% and, recently, without telling me, went to a whooping 23%, which is simply disgusting. My stupid need my card to cover emergencies and education related expenses. Applying to school is expensive and I need to be able to pay things slowly as exam classes, application fees and security deposits. I need my savings to help pay moving expenses and a car that will be needed for the school I go. Does opening a new card with a lower interest rate hurt me when I am a loan application? I can pay my current card in April and will be able to close the account. However, I need a credit card to pay a security deposit which will be $ 1,000 during the month of April and June I want to put on a card with a lower interest rate, I have several offers, but he killed me when I am applying for a loan?
FICO is so complicated.
Here are the things that can hurt:
Closing old accounts (credit history is an important factor in your score).
Closing accounts with high credit limits (artificially increases the use of credit, as harmful).
Opening a new credit line is a hard pull on your credit (5 points in general). Also, having too much credit card debt is bad (keeping your credit utilization below 30% is ideal).
If you close this account, your FICO will go down. Nobody can predict how much. Generally, closing at a paid account can hurt your score of 6 months to a year. Again, if it is an old account and / or an upper limit, the affects are potentially more damaging and more.
If you attend a university with an affiliation to a union credit, go and learn about their credit cards. By law, credit unions have to cap the amount of interest they may ask for credit card at 18% and many of them are much lower. If you close the old account and get a new card with a similar limit, your FICO will not take as big a success, but make no mistake, any account closure will impact. Fortunately, your current card is not your only point with a revolving balance is relatively new. In this case, your recovery time will be minimal.
Sad, is not it? Whatever we do, these card companies still retain control.
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The bottom line - the hard pull on your credit report will lower your FICO temporarily, but it will recover in 6 months.
Whether or not to have another account opened renewable will affect your ability to obtain student loans is something that we can not be predicted. Lenders look at how many accounts you have open and how these accounts are used. Keep your balances below 30% of the total credit limit. Two accounts can hardly be considered too many credit lines open, but we do not have your financial statements or how much you need in the form of loans.
Sorry for all the answers you get scam. They are reported, but Yahoo does not delete them. Soon Yahoo will be the responses supported by spammers and scammers and people will legitimately fleeing in droves.
New credit to lower your credit score for the first 6 months.
The reason why your current card can increase your rates because the accounting balances is bad for your credit.
There is only one way to get top scores 800 +.
You will pay in full each month.
Achieving balance not only reduces the credit - it can destroy lives.
See if you can go to financial aid and student loans more.
These loans are installment loans, much better for your credit Credit C.
