CSUEB grad cautions against tempting credit card offers

• December 6, 2011 5:08am

Credit card companies are dangling big rewards that they say will help consumers offset their spending sprees but before you say, “Charge it!” read the fine print to ensure that you're are even eligible.

In an interview with Associated Press reporter Candace Choi,  Barry Paperno, Cal State East Bay alumnus and consumer affairs manager for FICO, said that most consumers forget the impact a new account can have on their credit scores.

“A new line of credit could ding scores by as much as 25 points, according to Barry Paperno, which develops the most widely used credit scores. That's based on a range from 300 to those with poor credit, to 850 for those with excellent credit.”

Choi writes that scores typically recover from new account openings after about three to six months, assuming you make payments on time and don't open any other accounts. If you're applying for a mortgage in the near future, you might want to hold off on opening new cards.

Maybe those offers aren’t so tempting after all?

KL