FRUSTRATION

[Anonymous]

After going through a divorce, my credit was trashed.  I slowly paid off some things, but the majority went pass the statute.  My score slowly climbed  with only a small auto  loan and two Orchard Bank cards, and then stalled.  I was told I need credit with larger credit lines.  So, I did that...opened new accounts with slightly higher limits than my only other two credit cards.  Now, my score has dropped substantially. I don't utilize much of my credit.  I would say only 15 percent at any given time.   I have been told it is because once I opened my new accounts the average age of my credit history dropped.  One report said my average age was a year and a half.  How can that be, I am nearly 40 and got my first credit card at 19.  Since then had multiple vehicles, a mortgage (sold the house), loans and etc....Uggghhh, does this ever end?  Can someone help me out and tell me what I am doing wrong?  Thanks in advance.

[llecs]

Adding new TLs will  hurt your FICO score as you just experienced. I would suggest not applying for anything for a long while and let the new credit age. The new credit probably dinged your AAoA, as you mentioned, so it might be a while before that rebounds. IME, I have lost an avg. of 20-25 points per new TL added with most of the points returning after 6 months and most, if not all, coming back by the 1 yr. mark.

Higher CLs will never help your FICO score. What helps (or hurts) is how you utilize the credit you already have. Ideally you want to get all of your cards to report $0 but one and get that one to report a balance of less than 9%...for max points anyway. You'd be surprised how much of a ding you can get if all of your cards report a balance. BTW, most CCs, except Orchard, report the balance you had on the statement date. Orchard reports the balance you had on the last business day of the month.

If your oldest CC was obtained at age 19, 21 years ago, is this still reporting? The AAoA is based on OC accounts, open or closed, that are still reporting. Positive accounts remain for 10 years after you closed it, give or take.

Should those other accounts report? Have you checked all 3 CRAs?