how much of a score drop for new accounts

[ppiresny]

recently added 5 new accounts, only 1 reported so far the gap card and my score went from 694 to 678. I know it will go up higher eventually with good use of these cards and my credit limit has gone up about 8x. How much of a drop should i expect?

[pizzadude]

Adding a lot of new accounts at once will kill your average age of accounts ( AAoA ), how much depends on the number of accounts currently on your report    What was your AAoA prior to the app spree ??

It's impossible to know how much your score will drop, but a lower AAoA will cost you some points.

[Crashem]

Calculate where your old aaoa vs new aaoa. New cards = ding from new account, ding from inquiry, ding from lower aaoa, bonus from lowered util (if applicable). First two dings, the effects are gone in a year and mostly gone in 6 months. Aaoa ding stays with you.

[Anonymous]

Lot of factors to take into account and it is difficult to estimate.  If you play with the fico score simulator you will notice that your score can go up as well as down.  How is your util affected, AAoAs, etc...  I added 4 cards recently, I started at over 700 (708-718 range), now I am at 688 due to inqs and changing balances... I am estimating that I will be in the 640-650 range by the time all 4 cards are on my reports.  Adding a lot of new cards can quickly smack down your score!

[ppiresny]

utilization at 5% when i applied for these cards.

aaoa 3.1 yrs and loa 5.9yrs

i understand my score will drop and not too worried since i got my auto loan and also all the cards that i need for a long time. is it safe to assume after 6 months-1 year of responsible use of these cards my score will increase and quite possibly surpass my previous scores of 708 694 and 708?

[Anonymous]

With no negatives and low util, it is a safe bet that your score will be 720+ in a year (with no more inqs)

[Crashem]

What was old aaoa cs new aaoa?

[bichonmom]

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@ppiresny wrote:

utilization at 5% when i applied for these cards.

aaoa 3.1 yrs and loa 5.9yrs

i understand my score will drop and not too worried since i got my auto loan and also all the cards that i need for a long time. is it safe to assume after 6 months-1 year of responsible use of these cards my score will increase and quite possibly surpass my previous scores of 708 694 and 708?

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If your AAOA is just over 3 yrs, the new accts will drop you down to under 3 yrs. If they drop you down to under 2 yrs depends on how many other accts you have, how old they are, etc. I've seen 3 cards drop my AAoA 1 year. So, you may end up under 2 yrs, which will mean a bigger drop in FICO. You'll just have to wait and see what happens.

If you add your new CCs into you AAoA calc, you may be able to tell if you'll end up above or below 2 yrs after all have reported.

ETA: The new CCs only help your util if it's high to begin with. Since your util is 5%, the new CLs won't really help your util -- at least it terms of your current FICO. They could help your future util, but won't counteract the drop from your AAoA w/FICO.

[ppiresny]

ok, that makes sense, its no big deal my score will recover, its not like my score went down for no reason, i got new credit and new tradelines and will be sure to keep them active and properly managed.

[ssp]

5 new accts dropped my aaoa by 2 years and my score by 28 points. I'm in the garden for at least 18 mos. HTH