Will opening up a new credit account lower my credit score??
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As for your Capital One card,that also plays a factor on your score. Reason why is that it reports your current balance as your limit, and doesn't reveal the true credit limit on your report. Here's the catch 22: The only way for it to report your credit line is to use to the max. You don't want to do that, especially if you're trying to refinance a house. You should keep the balance low, if not at 0 and open up a secured credit card. This way, although you would still get an inquiry for applying, you improve your chances of getting approved. Reason I say get a secured card is that although you have to put a security deposit upfront usually linked to a savings account to get the amount as the credit limit, you can also raise the limit by adding to the deposit. The ratio of the debt that you owe versus the available credit is key, being that it counts 30% of your score. The only credit line that would show would be your Lowe's card, and that's going to take a month or two for that to report. You'll need another open trade line with a higher limit to offset what Captial One's not disclosing about your available credit. Keep in mind that usually after a year of paying on time and keeping the balance low or if not paid off, you get the deposit back. And the higher you boost your limit, the better becuase the higher limit will help the debt to available credit ratio which will in turn eventually boost your score.
Will opening up a new credit account lower my credit score??More Related Questions and Answers ...
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