Impact to your Credit

[Kizzy Robb]

Hello BP! I recently opened an retail account up (Home Depot) to help with some of my projects. I also opened a personal account up as well, close to this HD card. My credit score took a dive of 30 points. 30!!! And it’s been over a month and has not recovered. This is concerning to me, it took me so long to build my credit up to ensure I get decent rates now this. If you’re an investor, refinancing a few times a year or even monthly how does this impact your credit score and rates? I have been planning to scale my business in 2019 and start looking at purchasing once a month every month. If my credit score will take this kind of hit each time, how can I achieve this? Pretty soon if this keeps up I’ll be in the low 600s. I started off at 730.

[Maurice D.]

give it some time.

What is your utilization?  5% or 60%?  that will be the biggest ding on your credit score, is keeping any kind of balance on the cards, the higher the balance, the bigger the ding.   PIF them if you call each month (Pay in full).

Good news is when you go to do a Refi, you can plan ahead and pay the cards off a month and a half before so they report the zero balance, your score goes up immediately.

Also, two cards is not enough,  4-6 cards start helping your credit.  increase your limits every few months, this has the added benefit to reduce your utilization.   having a 1000 balance on a 2000 credit card (50% util) is horrible for your score, but not as bad as having 1000 sitting on a 5000 card.  (20% Util)