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  1. #1
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    -36 points on Fico8 for a new car loan & new credit card.

    If any one else was curious on how getting a new car loan and a new credit card would effect your FICO 8 credit score I have 1st hand experiance.

    Last month I decided to get a new car for a new venture I an curious about.. So I called up my bank, and over the phone within about 30 minutes I had an approval letter for $30K 72 months 2.39%. Before I even hung up the phone with the bank, I was getting push notification from Credit Karma, Amex, Discover, Chase, Experian, etc, about a new inquiry from my bank on my credit report.. That was pretty cool that those services actually work to notify you almost instantly.

    So the hunt for a new car begins.. It took me about a week to find a dealer that was willing to sale me the exact car I wanted below MSRP and not charge me any type of market adjustment or dealer addons. That was a huge win! Due to the current market, the KBB trade in value of my car shows to be higher than the amount I paid for it! #winning!

    So for this new venture I bought the car for, i started thinking about various expenses that I would need to pay for. I thought hell, since I already have 1 inquiry plus a new account, I might as well double down and get another inquiry and a new CC card. I then proceeded to look through various CC offer portals like NerdWallet, Credit Karma, etc... I see a Wells Fargo 21month 0% interest offer that said I was an "Outstanding" match for.. So I proceed with the application, and within minutes I get a 12.5K approval for the Wells Fargo Reflect card.

    So that's how I ended up with 2 new inquires and 2 new accounts on my credit profile. I was curious how this was going to effect my score.. Well today I get a push notification from Experian. I think all the damage has now been reported. My score has dropped 36 points. It shows the 2 inquiries plus 2 new accounts, 1is the car loan and the other is the new credit card.

  2. #2
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    I applied for 2 - 20 month interest free cards from my bank...one for my business account and one for my personal account....got approved for $20,000 and my score dropped 2 points. Probably the car and the card together affected it so dramatically. Wait a month and see how it recovers.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  3. #3
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    Olderguy, you mind sharing the details on the cards you got? Citi also had some good offers that I was an "Outstanding" match for as well.. I am wondering if I should have went when them... Lol.. If I would have went when them, then I would be wondering if I should have went with Wells Fargo....

    Or were the cards you got custom offers due to your relationship with your bank?
    Last edited by Winning; 03-17-2022 at 01:32 PM.

  4. #4
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    Quote Originally Posted by Winning View Post
    Olderguy, you mind sharing the details on the cards you got? Citi also had some good offers that I was an "Outstanding" match for as well.. I am wondering if I should have went when them... Lol.. If I would have went when them, then I would be wondering if I should have went with Wells Fargo....

    Or were the cards you got custom offers due to your relationship with your bank?


    Just keep your card usage around 20%, and pay your car on time and within 2-3 months, you'll have made back the 36 points and added more.








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  5. #5
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    Quote Originally Posted by Franklin View Post
    Just keep your card usage around 20%, and pay your car on time and within 2-3 months, you'll have made back the 36 points and added more.
    That sounds a little too optimistic, but time will tell. I will be sure to update this thread when I get my 36 points or more back.

  6. #6
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    Quote Originally Posted by Winning View Post
    Olderguy, you mind sharing the details on the cards you got? Citi also had some good offers that I was an "Outstanding" match for as well.. I am wondering if I should have went when them... Lol.. If I would have went when them, then I would be wondering if I should have went with Wells Fargo....

    Or were the cards you got custom offers due to your relationship with your bank?

    They were both US Bank and I have 2 accounts with them. (Biz and personal) Platinum cards 20 months interest free. Couldn't resist....put my motorcycle clutch replacement and suspension rebuild on them. I think Wells Fargo had the same offer to me as I have a savings account with them. I don't know if a 800 Fico was relevant for these...
    Last edited by Olderguy; 03-17-2022 at 08:47 PM.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  7. #7
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    Quote Originally Posted by Olderguy View Post
    They were both US Bank and I have 2 accounts with them. (Biz and personal) Platinum cards 20 months interest free. Couldn't resist....put my motorcycle clutch replacement and suspension rebuild on them. I think Wells Fargo had the same offer to me as I have a savings account with them. I don't know if a 800 Fico was relevant for these...
    Each card you got was 20K, or 20K total across both cards? Last month I had a 826 Fico8, and an 837 FICO? ( not sure what model Wells Fargo pulled, but the docs they sent in the mail showed the score that they pulled was 837).. With the -36 point hit I took my FICO8 is now 790

    I receive a lot of postal mail from USbank with offers, next time around I may go with them! Thanks for sharing.

    What type of bike you have!? I use to ride, man I had a great time on my bikes, I haven't found anything that quite matches that feeling. I am smiling just thinking about the great times I had!!!

  8. #8
    Senior Member Reputation points: 66298 Olderguy's Avatar
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    Over 800 score and you're fine - I wouldn't worry about it. I got most of the amount on my personal account as I have started my business for just a year....worked for a direct lender for 5 years prior and been in the mortgage business for years before.

    I have a 2011 Kawasaki Ninja ZX-10R well modified that I use on the street and track. Over 200 HP. 0-180 15 seconds.

    Yeah I'll be 76 in April. Fast old fawker...run fast B group.
    Last edited by Olderguy; 03-17-2022 at 10:38 PM.
    Steve Benjamin
    Professional Business Loans

    1012 Contessa
    Irvine, CA 92620
    steveprobiz@gmail.com
    https://probizloans.net/
    Broker, Underwriter, general business loan expert
    949.228.1050


    @ 24 hour funding working capital loans
    @ Term loans from 3 years to 10 years at 9.5% and up
    @ Equipment financing up to 7 years
    @ Property loans - Hard Money and traditional - Primary, Investment, commercial, land, fix and flip, construction.
    @ SBA loans - 7A and 504.
    @ Private money equity and debt for major investments
    @ Personal Loans up to gross income from personal tax return.

  9. #9
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    Quote Originally Posted by Franklin View Post
    Just keep your card usage around 20%, and pay your car on time and within 2-3 months, you'll have made back the 36 points and added more.
    Quote Originally Posted by Winning View Post
    That sounds a little too optimistic, but time will tell. I will be sure to update this thread when I get my 36 points or more back.
    Update..

    Today I checked my Fico8 and it has recovered +15 points. It has now been 3.5 months since I leveraged my credit and took a -36 point hit. I still need to recover an additional +21 points to be back where I was.

  10. #10
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    Quote Originally Posted by Winning View Post
    Update..

    Today I checked my Fico8 and it has recovered +15 points. It has now been 3.5 months since I leveraged my credit and took a -36 point hit. I still need to recover an additional +21 points to be back where I was.


    Have you used the cards for any other purchases, besides the motorcycle? While having your cards maxed out is bad, having your cards with no usage is also not good as it doesn't help you.

    Increasing your access to credit (another card or trade line), will also give you an immediate jump. You don't have to use it for spending. The higher the credit limit the bigger the jump.






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