How does opening up a credit card affect your credit score?

Question

I accidently opened up a credit card it seems by signing up at a baseball game. I gavce the wrong SS # but the right address and they got my DL number, so I guess they were able to sign me up. I closed it right away as soon as I found out I had it. Problem is, I close on a house in a week and I was trying to raise my score for a final go to try and get a lower rate. So how will the opening and closing of this account in the same month affect my score? obviously I got credit checked somhow so I'm already dinged from that.

Answer 1

That is a good credit score.  The credit card thing wont affect you unless you start using it.  If you do pay it off each month and you will gain good score.

Answer 2

Actually, you may have been better off not closing it especially since they checked your credit anyhow and it was a new account.    Your FICO score is not too bad.    I am guessing this incident will not swing it too much the wrong direction.  

One thing about closing credit cards.  People think it is a good thing.  Lots of time, it isn't.   This is so, because  one item that seriously affects your FICO score is your debt to credit ratio.  

So lets say Guy 1 has  various credit limits  totalling $10,000 and only $1,000 is charged, his  debt to credit ratio is 1/10 which is pretty good.  

One the other hand,  Guy 2 has the same $10,000 limit  but he has  $7,000 charged,  this Guy has a 7/10  debt to credit ratio, which is not  sogood.  

Lets say, you are the first guy and close one of your cards with a $5,000 limit.  Your debt/credit ration just plummeted to 1/5.  Not nearly as good.  

Having more cards (within reason) especially if they are older  accounts actually is pretty good because unless the cards are near the max the debt to credit ratio will tend to be higher.    

Your instincts are right, in that you don't want to do anything major close to closing and this is really close to closing.    Maybe if you made a payment on an outstanding credt card balance, you could squeeze out a couple of more points.  It could't hurt.   At the very least, you would be less in debt.  

Here is a good site that has lots of good info on raising your FICO score.   I am not sure it can be done in a week but maybe you can find some hints here.  And no its not my site.

http://www.credit-cards-comparisons.com/...

Answer 3

Any Unsecured Credit Account Will Report as an Adverse Account to the Credit Bureaus for 6 - 12 months until The Account establishes positive payment history.

A secured credit card is your best chance to establish a beneficial credit line which will report positively to the credit bureaus after just 30 days! Apply at your bank of choice, Just make sure they make 12 annual reportings to all 3 major credit bureaus to maximize the effectiveness of each account!

Cease Applying for any other credit lines immediately, as a sudden influx of inquiries can lower the credit score further.

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