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Contributor
glendazamot
Posts: 89
Registered: ‎07-28-2012

Is it normal for credit score to go down with new cc

I opened a ccard with capital one and it just hit my report and my score went down 12 pts!! I am new at this, one big mistake that I did is to use 90% of the credit limit which I wont be doing again will be paying in full and using only10% but will my score go back up???

This newbi needs help :/
Valued Contributor
nicholasyud
Posts: 1,734
Registered: ‎08-13-2012

Re: Is it normal for credit score to go down with new cc

90% bring your score down or an inquiry lose some of your point too.....


Starting Score: 560
Current Score: 748 Wishlist: CSP, Simply Cash, SPG, BOLD, INK, United MP,
Goal Score: 800


Walmart: 10k |Usaa: 8k|BCE: 9k| Amex: NSPL|Dis: 3.4k|Cap: 3.5k|CAP: 2k|CSP: 5k| Pen:4.5k

Super Contributor
CS800
Posts: 6,542
Registered: ‎04-07-2008

Re: Is it normal for credit score to go down with new cc


glendazamot wrote:
I opened a ccard with capital one and it just hit my report and my score went down 12 pts!! I am new at this, one big mistake that I did is to use 90% of the credit limit which I wont be doing again will be paying in full and using only10% but will my score go back up???

This newbi needs help :/

Two things can be affecting you:

 

1. Your util. If you're using 90% of your total util then you're definitely getting hit big time on your FICO since 30% of your FICO score weight is your util.

2. A new card also decreases your AAoA (average age of your accounts)

 

I would say once you get your util under 10% that in itself may boost your score

 

Once your accounts age further, that also would be a score booster.






Frequent Contributor
JPersat
Posts: 299
Registered: ‎05-28-2012

Re: Is it normal for credit score to go down with new cc

Yep. You took a hit against your AAoA and for an inquiry, or hard pull. It will recover. I lost 6 points in June when I opened a new card, but since it's gotten a little older and I kept the balance low, I've gained 27. I'm sure my new low balancesacross the board helped, but yes...your score will recover. Just take care of that new card.

 

 

If the formatting sucks, I apologize...on an iPad!

 


Starting Score: 492 02/12
Current Score: TU: 668 (FICO), EQ: 668 (FICO). EX: 651(lender pull 9/27/12)
Goal Score: 660




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