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No new accounts reduce scores?

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Fico2Go
Established Contributor

No new accounts reduce scores?

 Just had some fun time with EQUIFAX website and noticed that Amount of New Credit  can impact scores.  

Does this mean that not apping for new accounts can hurt your overall scoring?  

 

If so, my strategy of not using up a HP for new accounts may have to be changed.  

 

Have I misunderstood or new accounts are now required to optimize scoring?

 

 

 

 

 

Discover IT $19,000 == 12/2013
AMEX 12/2013 ---BCP $12,000 === BC $23,000 ----- 04/2014
CHASE SLATE $5,700 === 12/2013
BoA 123 $6000 === 12/2013
Barclay Rewards $1500 == 12/2013
Message 1 of 7
6 REPLIES 6
Ghoshida
Valued Contributor

Re: No new accounts reduce scores?


@Fico2Go wrote:

 Just had some fun time with EQUIFAX website and noticed that Amount of New Credit  can impact scores.  

Does this mean that not apping for new accounts can hurt your overall scoring?  

 

If so, my strategy of not using up a HP for new accounts may have to be changed.  

 

Have I misunderstood or new accounts are now required to optimize scoring?

 

 

 

 

 


I think it's the other way around; more new credit, like more inquiries for credit, hurt score.

Message 2 of 7
Anonymous
Not applicable

Re: No new accounts reduce scores?

Like Ghoshida said, pretty certain it's the opposite. New accounts decrease your average age of accounts overall and don't have any history, also can raise concerns that you're in need of more credit for some reason. So new lines and inquiries are seen as a negtive.

Message 3 of 7
longtimelurker
Epic Contributor

Re: No new accounts reduce scores?

Right, mine shows Amount of Debt as another category, and that doesn't mean the more the better!  Simiarly late payments can also impact credit score, which doesn't mean that you should make sure you have a few of those!

Message 4 of 7
Anonymous
Not applicable

Re: No new accounts reduce scores?


@longtimelurker wrote:

Right, mine shows Amount of Debt as another category, and that doesn't mean the more the better!  Simiarly late payments can also impact credit score, which doesn't mean that you should make sure you have a few of those!


LOL, now that was a good response. I'm still laughing. That would be interesting if someone actually thought that could help!

Message 5 of 7
Anonymous
Not applicable

Re: No new accounts reduce scores?

Pretty sure they meant "Amount of New Credit can impact scores" negatively.

Message 6 of 7
Fico2Go
Established Contributor

Re: No new accounts reduce scores?


@longtimelurker wrote:

Right, mine shows Amount of Debt as another category, and that doesn't mean the more the better!  Simiarly late payments can also impact credit score, which doesn't mean that you should make sure you have a few of those!




LTlurker, you speak in absolute terms. 

 

On the other hand, we also know that more debt can and do get better scores than $0 as long as ratio is below 10%.  Right?

 

 

Perhaps, it's also possible that more new accounts is better than 0 new account if new account is below xxxxxx/total accounts? 

 

 

Is that too irrational to consider?

 

 

Discover IT $19,000 == 12/2013
AMEX 12/2013 ---BCP $12,000 === BC $23,000 ----- 04/2014
CHASE SLATE $5,700 === 12/2013
BoA 123 $6000 === 12/2013
Barclay Rewards $1500 == 12/2013
Message 7 of 7
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