How badly does opening a credit card hurt your FICO score?

Who really knows, but you are "playing with fire".  Not scolding you, but 719 and 720 scores are 1/2% in pricing.  By paying down the other cards 30% (Very good)) and no other activity... should have resulted in a higher score.  When you apply and pull it you will be able to tell us.  Other people who simply "read" credit reports do not have the actual numbers as it is some type of algorhythim that none of us "really" know the answer.  I would "get mortgage" first and then play around with plastic 2nd.  You will probably be OK, but that is not cosidered to be lowering your risk according to all the information I have heard, but I wish you well.  Keep rockin'.

Dpuma,

When you opened up the new credit cards, what was your maximum balance and how much did you transfer to these cards?  Are you close to the limit?

If so that can cause problems, and you will want to reduce those balances. 

But as Martin said, there are so many variables involved with a credit score...the only true way to know if it had any adverse impact on your score, is to obtain a credit report.

dp,

It will be tremendousl disappointing to you if your score fell a few notches ( and just did not go up 1) to "save" a small percentage rate on plastic.  1/2% of $200,000 loan is $1,000 in closing costs. So, if you are playing around with $10,000 in plastic, you must save 10% in rate to equalize the damage that 1 point will cost.  More importantly, you are moving and paying your balances lower, but keep working at simply getting out of debt.  Deleverage, deleverage, deleverage and you will be in much better position.  Keep rockin'.

Our total credit that we can use is probably around $80,000 and I now have $3400 (out of $7500 available) and $4170 (out of $5000 available).  So I guess I am using $7570 out of $85,000 and that is a 0% rate until June of 09.  My plan was to move this debt to the 0% card in order to save money in my account.  Right now we have  about $4000 in cash and are going to save $1000 a month until January.  If I need to put money down for the house, then I will.  If I can get a no money down offer then I will do that and then pay off the credit cards when the 0% term expires.

I am pretty responsible with my credit and the only reason why I have the debt is because I paid for a few years of college on my credit card.

So are some of you saying that it is better to pay on the 0% cards already even though I am using roughly 9% of my available credit right now?

I did not open the 0% cards and decide to load on more debt.  I pay $65 to one card and $70 to the other every month and my balances have been decreasing.  So I was opening another card to shift my interest rate.

Recommendations?

When my score was pulled recently related to financing, I was using  ~2.5% of my available credit card credit (1 card, >20 years with that card).    The FICO comments came back saying that I was using too much of my available credit.

dpuma,

Plan on having to put money down in this market.  So if you can save, save.  Worst case you don't use it for a purchase and you have a nest egg.

You can beat 0%, but if it did affect your score negatively you are going to want to pay them down.  I recommend you find out your credit scores, it will give you an idea if you really even need to do anything with your credit.

can = can't

dp,

Nobody is saying you are doing anything wrong or irresponsible, but you are moving around balances for $7500.  If you save interest on $7500, but take a 1/2 point pricie hit on your closing costs, hindsight would tell you whether the "free rate" was worth it that's all. Unfortunately, we do not know exactly what your score will be so only time will tell.  I do hope it works out for you, though.  Let us know what happened to your score and we will keep our fingers crossed for you and will root for you.  Keep rockin'.

Dpuma -

I would be very careful when transferrring balances and opening new accounts. You may be able to get a great rate on the credit card but it could affect your credit score enough to give you a higher rate when it comes time to purchase a home. Every persons credit and situation is different, because of that many mortgage brokers have a "what if" simulator that they can do for their client. If I have a client that is thinking about doing what you are doing I will run them on my "what if" simulator and it will tell me exactly what that will do to their credit score. That way there are no surprises and they can attain their ultimate goal of getting the best mortgage loan possible. If it's not in their best interest I can tell them to hold off until after they close on their home. That we they don't lower their credit score un-expectedly. I hope this helps. Good luck on the purchase of your new home.

The FICO comments came back saying that I was using too much of my available credit.

I'm never sure how to interpret those FICO comments.  For the last 6 months, I have not carried a balance from month-to-month but my FICO comments say that I have too much revolving debt and am using too much of my available credit balance.

The hit for such things is minimal, but you may need to explain inquiries, and in your case it sounds like even the smallest change could have a big impact.

Fat,

Do you use a charge card like American Express that has to be paid off every month?  If you do, a lot of times those accounts will show the amount you spent that month as you credit limit, and then you get that FICO comment.

I do have an Amex Platinum, but only used it in February and paid the balance off within a day of the charge posting to the account.  I have a feeling the comment is there because my score is excellent and there really aren't any big negatives, but something needs to fill the space.

FN,

There are comments on every client regardless of score..  I have yet to read: Perfect!!  He does everything perfectly.  Simple process is pay your bills on time and use credit in balance. Not rocket science and you are doing well FN.  keep rockin'.

Looking on sites like My Fico give mixed opinions. I think it is a balence act with the limits on your existing account and length of time credit has been established.