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Valued Contributor
indiolatino61
Posts: 1,429
Registered: ‎11-10-2012

Score Recovery Times...

Hello all...I was wondering what experience you've had in the time it takes to recover from a hit to your FICO scores after opening new accounts. After my Amex and Discover started reporting, my Walmart score fell 32 points. A month later, my score recovered by 13 points, which is close to about a 1/3 of what I dropped. If this trend continues, it would take about 3 months for my scores to rise to the level they were before the new accounts. Is this about right, or is it just me...lol? Thanks.

 photo Logo-CreditCardCollection_zps2f177769.jpgWmart (TU): 802, Disc it (TU): 802, CKarma (TU): 767, AmEx (EX): 755, CSesame (EX): 710, Quizz (EQ): 778, myFICO (EQ): 770.
Oldest: AmEx: 26Y-2M, AAoA: 6Y-1M, Utl: 0.81%, 12/24 Inq: 5/15, Income: $99k, Garden: 03/30/2014. Updated 04/10/2014.
New Contributor
danielodonoll
Posts: 401
Registered: ‎03-16-2013

Re: Score Recovery Times...

[ Edited ]

2 months give or take

U will not gain everything back because of the AAA but the 80% will recover

Citi Bank X2/ 29k-USAA Amex/Mastercard 24k-PP Mastercard 20k_
WMDiscover 20k-PenFed X2/15k
Current Fico/EQ-765
Garden Time Day- 10
Remaining Days-170
Community Leader
Valued Contributor
myjourney
Posts: 23,485
Registered: ‎02-07-2013

Re: Score Recovery Times...

Each case is different but as long as you follow the general rules 

UTL 1-9%

pay on time

no more apps

you should recover in no time. 

Good luck

"Intelligence plus character--that is the goal of true education"
I will be gardening until a better offer/bonus comes along
Last escape 06/06/13 Bronze 7/6/2013 Silver 9/6/2013 Gold 12/6/2013 Palladium 3/6/14 made it
Frequent Contributor
GMCSierraDenali
Posts: 252
Registered: ‎02-19-2013

Re: Score Recovery Times...

I opened 8 new accounts last week so I don't want to check my score for a while... :smileysad:

      

      

Established Contributor
YahComb
Posts: 588
Registered: ‎03-10-2012

Re: Score Recovery Times...

new accounts can hurt score for 3,6, 12 months regardless if AAoA changes or doesn't(rounding down means your AAoA can drop many months but as far as fico is concerned it can stay the same-ie 3 years 10 months, with a new account down to 3 years 1 month, to fico it's 3 years either way)

EQ-728(03/31/14) TU-761(03/19/14)
Newest to Oldest
Barc Sallie Mae 6K | Citi TY Pref 4.5K | US Bank Cash+ 10K | Chase Freedom 7.5K | Disc It 9K | Amazon Store 2.5K | BOA Cash Rewards 10.5K |

Closed Cards: 4 Oldest: 2.67yr AAOA: 21.8 mo
New Contributor
danielodonoll
Posts: 401
Registered: ‎03-16-2013

Re: Score Recovery Times...


YahComb wrote:

new accounts can hurt score for 3,6, 12 months regardless if AAoA changes or doesn't(rounding down means your AAoA can drop many months but as far as fico is concerned it can stay the same-ie 3 years 10 months, with a new account down to 3 years 1 month, to fico it's 3 years either way)


Yes very correct/good advice YahComb

Citi Bank X2/ 29k-USAA Amex/Mastercard 24k-PP Mastercard 20k_
WMDiscover 20k-PenFed X2/15k
Current Fico/EQ-765
Garden Time Day- 10
Remaining Days-170
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: Score Recovery Times...

I.recently got a new car lease, mortgage, and 3 CCs. All of the apps occurred between 11/15/12 and 2/13/13. I increased my utilization up to 75% during this time. My starting score was 703 and the lowest my score fell during this time was 27 points to 676. My score just updated to a 680 a couple of days ago after the new balances reported on my CCs after paying them down from 75% Util to 39% Util. So I gained a measly 4 pts from paying my Util down by a lot. So I am guessing the new accounts have dropped my score 23 pts. I don't know how long it will take to get back in the 700's but I'm guessing by Sept when the newest account will be 6 months old.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014
Regular Contributor
solstice00
Posts: 153
Registered: ‎03-09-2013

Re: Score Recovery Times...

Do new accounts always have a negative impact on the score?

I have oped 5 new accounts in the last one month and my score first dropped from 671 to 652 and then shot up to 712 when the new accounts were added.

Or will the score drop come next month after the first statement? 

I am a little scared

 



"Its your AAoA, Sir. It seems, Sir, that it is so short that i dont think it would hurt for it to get a little shorter"
Valued Contributor
MovingForward_2012
Posts: 3,406
Registered: ‎12-19-2012

Re: Score Recovery Times...

Not always. My score stayed 703 after an auto loan was paid off and a new lease assumed. My score also stayed the same when the Chase Freedom was added. But the HP for ADT was the tipping point and caused the first drop in score and when the BB CC was added, my score dropped a little more. When my mortgage started reporting last month, my score dropped another 8 pts. I don't think I have seen any point increases from new accounts since the rebuilding phase. I think this happens sometimes when new accounts are added due to fico rebucketing. I wouldn't expect a score drop later on unless you add inquiries or increase Util.
Cards: Orchard Bank ($1100) | Cap1 Cash Rewards ($2500) | Chase Freedom ($1000) | Best Buy ($2500) | Discover It ($1000) | Barclay Rewards ($2500) | Current scores: EX FAKO: 684, CK TU: 649, FICO EQ: 680, FICO TU: 698, FICO EX: 658 Happy Homeowner Since 2/6/13! :smileyhappy: Last App: 4/5/13 Gardening until July 2014

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