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Do new accounts hurt or help score?

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tangerinze
New Contributor

Do new accounts hurt or help score?

I've always heard new accounts was bad. I literally just had 6 new accouts open this month and my score just keeps climbing.

Thanks!
Message 1 of 4
3 REPLIES 3
gdale6
Moderator Emeritus

Re: Do new accounts hurt or help score?

If you have already exceeded your first 3 or so then there would most likely not be a bump in score for anymore being added but  a ding, this ding can possibly be being overidden by your utilization rate dropping as each cards CL is added to overall util. Most dings to Fico for new accounts last up to 6 months and the points are recovered over that period of time. If your AAoA is already low there would not be a hit due to it falling even further.

Message 2 of 4
Shogun
Moderator Emeritus

Re: Do new accounts hurt or help score?

It all depends on what's on your file.  If you had a very thin file, then you would see a jump.  If you had a decent file and the new accounts decreased your AAoA significantly, you'd see a bit of a drop.  I don't worry about that, you need a good healthy thick file for your scores to grow.  Congrats!

Starting Score: 504
July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!

June 2017 update: All scores over 820, just pure gardening now.
Message 3 of 4
tangerinze
New Contributor

Re: Do new accounts hurt or help score?

Ahh ok. Yeah I have never had a credit card before so I just went for it and got 3 cards that I really wanted and 3 store cards I wanted. And then I'll just wait it out for a few years. I guess that explains the jump up! Thanks!
Message 4 of 4
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