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Established Contributor
PlasticOrPlastic
Posts: 939
Registered: ‎08-08-2013
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28 Point FICO Drop....

So I recently applied for and was approved for the Discover IT card.  Before I had the card I was sitting at TU FICO 659 (was happy to be above 650 finally) well now the card has been activated and reported to TU and my score dropped 29 points to 631.  Is this just because I added the new account?  I thought the added CL ($1000) would actually help by lowering my utilization.  I know I took the HP but would canceling the card bring my score back up?

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Valued Contributor
-NewGuy-
Posts: 3,728
Registered: ‎12-18-2013
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Re: 28 Point FICO Drop....

It could also have lowered your AAoA in addition to the inq.

Valued Contributor
-Wade-
Posts: 12,624
Registered: ‎08-13-2013
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Re: 28 Point FICO Drop....


EndlessRoad wrote:

So I recently applied for and was approved for the Discover IT card.  Before I had the card I was sitting at TU FICO 659 (was happy to be above 650 finally) well now the card has been activated and reported to TU and my score dropped 29 points to 631.  Is this just because I added the new account?  I thought the added CL ($1000) would actually help by lowering my utilization.  I know I took the HP but would canceling the card bring my score back up?


Yes if you have a thin file it will do that! Don't worry you score will go back up 3 to 6 months

Old user name newportguy*** Current Score: myFico EQ - 806 (04/04/2014) Discover TU Fico - 813 (09/02/2014) myFico EX - 804 ( 07/08/2014 ) ******* Amex - BCP 10 K * Discover - IT 10.5 K * U.S. Bank Cash + Visa Signature 8.8 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ****** FICO 800 Club Member ******* EQ 806 *** TU 813 *** EX 804 ***
****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores ******
Established Contributor
PlasticOrPlastic
Posts: 939
Registered: ‎08-08-2013
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Re: 28 Point FICO Drop....

So keep it open then?  My FICO credit report says my credit history is 12 years, but no info about AAoA, thanks for that suggestion though I hadn't thought about that.  I'm recovering from a BK back in 2011 so getting a Discover Card and a FICO above 650 was kind of satisfying, seeing the drop crushed those dreams :smileyindifferent: If 3 to 6 months will help though that's fine with me, I plan to pay the balances off my other cards and use the discover exclusively for a while. 

Valued Contributor
-Wade-
Posts: 12,624
Registered: ‎08-13-2013
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Re: 28 Point FICO Drop....


EndlessRoad wrote:

So keep it open then?  My FICO credit report says my credit history is 12 years, but no info about AAoA, thanks for that suggestion though I hadn't thought about that.  I'm recovering from a BK back in 2011 so getting a Discover Card and a FICO above 650 was kind of satisfying, seeing the drop crushed those dreams :smileyindifferent: If 3 to 6 months will help though that's fine with me, I plan to pay the balances off my other cards and use the discover exclusively for a while. 


Oh yes keep it open the damage is already done and closing it will not help any

Old user name newportguy*** Current Score: myFico EQ - 806 (04/04/2014) Discover TU Fico - 813 (09/02/2014) myFico EX - 804 ( 07/08/2014 ) ******* Amex - BCP 10 K * Discover - IT 10.5 K * U.S. Bank Cash + Visa Signature 8.8 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ****** FICO 800 Club Member ******* EQ 806 *** TU 813 *** EX 804 ***
****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores ******
Established Contributor
PlasticOrPlastic
Posts: 939
Registered: ‎08-08-2013
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Re: 28 Point FICO Drop....

Will do thanks a lot Wade!

Valued Contributor
-Wade-
Posts: 12,624
Registered: ‎08-13-2013
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Re: 28 Point FICO Drop....

[ Edited ]

EndlessRoad wrote:

So keep it open then?  My FICO credit report says my credit history is 12 years, but no info about AAoA, thanks for that suggestion though I hadn't thought about that.  I'm recovering from a BK back in 2011 so getting a Discover Card and a FICO above 650 was kind of satisfying, seeing the drop crushed those dreams :smileyindifferent: If 3 to 6 months will help though that's fine with me, I plan to pay the balances off my other cards and use the discover exclusively for a while. 


Also paying your bal down on credit cards will raise your score as your uti goes down! The best way to get a max score is only carry a small bal on 1 card...  1-9% uti

 

Edit: pay before statements cuts on all but 1! Also you can pay on the one but leave a small bal

Old user name newportguy*** Current Score: myFico EQ - 806 (04/04/2014) Discover TU Fico - 813 (09/02/2014) myFico EX - 804 ( 07/08/2014 ) ******* Amex - BCP 10 K * Discover - IT 10.5 K * U.S. Bank Cash + Visa Signature 8.8 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ****** FICO 800 Club Member ******* EQ 806 *** TU 813 *** EX 804 ***
****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores ******
Valued Contributor
-Wade-
Posts: 12,624
Registered: ‎08-13-2013
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Re: 28 Point FICO Drop....


EndlessRoad wrote:

Will do thanks a lot Wade!


Your most welcome :smileyhappy:

Old user name newportguy*** Current Score: myFico EQ - 806 (04/04/2014) Discover TU Fico - 813 (09/02/2014) myFico EX - 804 ( 07/08/2014 ) ******* Amex - BCP 10 K * Discover - IT 10.5 K * U.S. Bank Cash + Visa Signature 8.8 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ****** FICO 800 Club Member ******* EQ 806 *** TU 813 *** EX 804 ***
****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores ******
Frequent Contributor
Blackrv7
Posts: 399
Registered: ‎11-13-2013
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Re: 28 Point FICO Drop....

If by chance you are looking at your credit karma TU score, they do not factor in your closed accounts in determining the AAoA.  If that is the case, with a thin file, opening a new trade line could really lower your Ck score.  My CK score is almost 40 points lower than my actual TU score.


Current myFico EX 734, EQ 777, TU 742
AAoA 6 years 3 months, Length 25 years 2 months

Valued Contributor
-Wade-
Posts: 12,624
Registered: ‎08-13-2013
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Re: 28 Point FICO Drop....


Blackrv7 wrote:

If by chance you are looking at your credit karma TU score, they do not factor in your closed accounts in determining the AAoA.  If that is the case, with a thin file, opening a new trade line could really lower your Ck score.  My CK score is almost 40 points lower than my actual TU score.


That is also correct:smileyhappy:

Old user name newportguy*** Current Score: myFico EQ - 806 (04/04/2014) Discover TU Fico - 813 (09/02/2014) myFico EX - 804 ( 07/08/2014 ) ******* Amex - BCP 10 K * Discover - IT 10.5 K * U.S. Bank Cash + Visa Signature 8.8 K * PenFed - Cash Rewards 5 K * Amex - GDSM 5 K ****** FICO 800 Club Member ******* EQ 806 *** TU 813 *** EX 804 ***
****** Last HP & New TL was March 6th 2014 *** GOAL: No HP's or New TL's for 2 + years and 830's Scores ******

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