-20 point drop for iPhone credit check

[deeddawg]

Next year I better open some CC spend some money towards iphones, get 400-500 bonus dollars and close it.

These days you're just as well to keep the card(s) open and use them once a year to keep them alive. Many credit scores/decisions are based on percentage of total available credit in use. So the more unused credit available the better off you are.

What you definitely do NOT want to do is close your old credit cards; the older your active accounts the better. I keep a couple cards around that I'd originally opened twenty years ago even though I primarily use other cards (such as Citi's 2% cash back).

See http://www.clark.com/should-you-close-your-credit-car

The above of course assumes one has the discipline to have a pile of available credit and not spend it.

 

[jshtroutman]

The number one reason I bought mine outright this year. Sucks to drop that cash when the installment plan is interest free.

 

[imlynxy]

These days you're just as well to keep the card(s) open and use them once a year to keep them alive. Many credit scores/decisions are based on percentage of total available credit in use. So the more unused credit available the better off you are.

What you definitely do NOT want to do is close your old credit cards; the older your active accounts the better. I keep a couple cards around that I'd originally opened twenty years ago even though I primarily use other cards (such as Citi's 2% cash back).

See http://www.clark.com/should-you-close-your-credit-car

The above of course assumes one has the discipline to have a pile of available credit and not spend it.

Citi's 2 percent cashback is a verg good choice.

 

[AppleWarMachine]

mine went down one point, no biggie, still excellent!

 

[Rob198612]

Yep, Verizon pulls mine every time I upgrade for some reason. The pull just fell off from the iPhone 6 check, and now here's another.

at&t never runs my credit anymore and i have gotten through the at&T next program an iPad pro, like 4 phones, etc... but also i have developed a solid relationship paying my bills every month have uverse directv etc.. maybe thats why at&t no longer runs my credit?

 

[Beau1K]

These days you're just as well to keep the card(s) open and use them once a year to keep them alive. Many credit scores/decisions are based on percentage of total available credit in use. So the more unused credit available the better off you are.

What you definitely do NOT want to do is close your old credit cards; the older your active accounts the better. I keep a couple cards around that I'd originally opened twenty years ago even though I primarily use other cards (such as Citi's 2% cash back).

See http://www.clark.com/should-you-close-your-credit-car

The above of course assumes one has the discipline to have a pile of available credit and not spend it.

The really inportant factor is how long your average credit history is, this is why you should not close credit accounts. And of course that history must be late payment free.
[doublepost=1473688270][/doublepost]

Again, was this with regular financing or the IUP? Because with the IUP don't they run your credit at the store when you pick up your phone?

Maybe it's different for people signing up to the IUP for the first time and those who are re-upping from last year?

Sorry this is for first time buyer of IPhone Ugrade Plan or IUP as you say. Credit was run as I preordered! Phone ships to my house this year. Next year I goto store for a trade in.

It's all about the upgrade. $5 more to upgrade every year!? Yes please!

Year one I pay $500. I sell my current 6s 128 on Craigslist for $500. First year = free. Next year I get a new phone and pay the $45/mo...no biggie.

I used to be on the S train...getting a new phone every 2 years. Then the phone would typically be worth $350-$450 or so and I'd be a could hundred out of pocket still after the 2 year carrier discount. With IUP it's really a matter of convenience more than economics for me but its interesting to look into the different possibilities.

 

[geoff5093]

These days you're just as well to keep the card(s) open and use them once a year to keep them alive. Many credit scores/decisions are based on percentage of total available credit in use. So the more unused credit available the better off you are.

What you definitely do NOT want to do is close your old credit cards; the older your active accounts the better. I keep a couple cards around that I'd originally opened twenty years ago even though I primarily use other cards (such as Citi's 2% cash back).

See http://www.clark.com/should-you-close-your-credit-car

The above of course assumes one has the discipline to have a pile of available credit and not spend it.

I generally agree with that, however I decided to close two credit cards that I had recently gotten for the bonus cash. Why? I didn't like having credit cards around that I had to monitor to make sure no fraud was committed, and it was more hassle to check those statements since I never used them anymore.

 

[deeddawg]

Yep, quite reasonable.

 

[geoff5093]

Yep, quite reasonable.

It's a shame that's how the credit industry works. You shouldn't be penalized for closing a credit card.

 

[newellj]

The number one reason I bought mine outright this year. Sucks to drop that cash when the installment plan is interest free.

The IUP and the regular installment payment plan are both extensions of credit. Why would you assume that no one would bother with a credit check?

 

[Sketchr]

First of all, are you sure you are actually looking at a FICO score and not a FAKO one? FICO scores will actually note as such. Most of the scores you obtain from such monitoring services such as Credit Karma etc are not true FICO scores and are calculated differently. These are not the scores lenders use.

Secondly, any FICO score above 780 is golden. You will not be granted any more favorable terms for having scores higher than that.

Third, the most number of points I've heard from a hard pull alone (everything else remaining equal) is 7 points. However once a new account starts reporting in addition to the hard pull it may subtract a few more points.

 

[C DM]

obviously an 809 is fine, It has been a long term goal through careful management to achieve as close to 850 as possible. I just paid off a car loan too so I was expecting a positive change and this just pours water on my whole fantasy.

Perhaps paying off the car loan might have contributed to it all, kind of like another poster mentioned about paying off the mortgage:

You're complaining about an 809 score? That's excellent! When my mortgage was paid off it dropped. Now that passes me off.

 

[JayLenochiniMac]

While obviously an 809 is fine, It has been a long term goal through careful management to achieve as close to 850 as possible. I just paid off a car loan too so I was expecting a positive change and this just pours water on my whole fantasy.

You should not have paid off that car loan then. Your credit score drops when you pay off an installment loan.

 

[mattopotamus]

Even when you close an account it still reports for 10 years, so will help your AAoA. I agree though, do not close cards you are not using unless they have an annual fee. It makes no difference if you close the account or if the creditor does as long as you are in good standing (not closed b.c you are not paying).

Really surprised to hear your score dropped that much. For someone with a score over 800, something as small as a single hard pull should not decrease it that much.

 

[kovey]

He made this thread to simply brag about his 800+ score in the first place. Stop replying, his ego will eventually deflate, and he'll have to find something else to complain about.

 

[aristobrat]

Yeah that's why I stick with att next. I don't want the phone on my credit report as a loan.

I got two phones last year on Apple's upgrade program. The way I did the store reservation for the upgrade, they're on separate Citizen One accounts.

Neither of those Citizen One accounts show up any of my credit reports (Equifax, TransUnion, Experian).

 

[JackieInCo]

I'd just be thrilled to have that high of a credit score, at that point screw a 20 point drop because I don't think it's really going to hurt you.

Being barely 25 and having obvious loans sucks when it comes to building your score up but that's life.
[doublepost=1473675460][/doublepost]

I had to pay tax on mine and I did the same thing, must be nice!

Actually, there is such a thing as having too high of a credit score. Some banks won't issue cards to those with too high of a score because that high of a score often means people pay off the card monthly. The banks want to make money off of extending that credit in the form of monthly payments. 800+ may very well be that point.

 

[mattopotamus]

Actually, there is such a thing as having too high of a credit score. Some banks won't issue cards to those with too high of a score because that high of a score often means people pay off the card monthly. The banks want to make money off of extending that credit in the form of monthly payments. 800+ may very well be that point.

I have never heard or experience that anywhere in my life. I know you can have too much available credit, and they may not lend you money b/c that is a risk.

 

[JackieInCo]

I have never heard or experience that anywhere in my life. I know you can have too much available credit, and they may not lend you money b/c that is a risk.

Do a Google search. 800 IS indeed the point where they consider you to have credit that is too good.

Gander Mountain sued their bank because they were turning down anyone who had a score of 800 and above. The bank said it was hard to make a profit off of those customers. Banks like people to make payments or even make late payments due to the increased fees involved.

 

[JayLenochiniMac]

Really surprised to hear your score dropped that much. For someone with a score over 800, something as small as a single hard pull should not decrease it that much.

The OP just paid off his car loan too so the 20 point drop isn't caused solely by the hard pull. Paying off an installment loan decreases credit score.

 

[deeddawg]

Do a Google search. 800 IS indeed the point where they consider you to have credit that is too good.

While I have nothing to say this isn't true, I'm like mattopotamus in that I haven't had any trouble getting new credit cards when/where desired and I've been above that threshhold for years.

Yes, banks make money off of those who don't pay off their card every month, but they also make money on the transaction fees from those of us who use our cards frequently.

 

[mattopotamus]

The OP just paid off his car loan too so the 20 point drop isn't caused solely by the hard pull. Paying off an installment loan decreases credit score.

Ahh, didn't read that far and that makes perfect sense.

 

[cynics]

I can understand being upset over this. Getting a high credit score is a long sometimes mysterious process. No one wants to see years of work vanish in the matter of seconds.

I don't buy high dollar finance required things until my score is very high because I know it's going to drop.

So a drop in credit can affects me by making me not buy things I may want.

I recently got a credit card during purchase simply for the cash back bonus. Hurt my credit score. Then I immediately cancelled it because I don't want the liability of that card just laying around. Hurt my credit score. So now I won't be buying anything like that until my credit has rebounded.

 

[mattopotamus]

While I have nothing to say this isn't true, I'm like mattopotamus in that I haven't had any trouble getting new credit cards when/where desired and I've been above that threshhold for years.

Yes, banks make money off of those who don't pay off their card every month, but they also make money on the transaction fees from those of us who use our cards frequently.

Yeah, that is the most ludicrous thing I have heard. If anything, since fanny mae and freddie mac they want those 800+ people.

I'm sure we could find anything on google, but I have never heard of it and I am on CC forums daily.

 

[JackieInCo]

The OP just paid off his car loan too so the 20 point drop isn't caused solely by the hard pull. Paying off an installment loan decreases credit score.

I paid off my car loan about 2.5 years ago and my score didn't move either way.

I had a bankruptcy that was discharged about 3 years ago now and my score is finally at 721. It took getting two credit cards, making several high dollar purchases on both, paying one off completely after four months of payments and making payments on the second card to get my score where it is. Each month I make $200 payment on the second card, my score increases by 1.

My mortgage payment doesn't seem to have an affect on my score even though it is paid on time each month.