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