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50 point drop? Seriously?

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Kohler
Established Member

50 point drop? Seriously?

Hi, everyone. Just wanted to share my experience and get feedback. Before my app spree that occured last month this is what my credit profile looked like -

 

4 student loans from 2008 in good standing

2 student loans from 2013 in good standing

1 Collection for $100ish from 2008

 

Credit score - 623.

 

I added 7 new credit cards in March/April of this year. Now Discover has my credit score at 573. Anyone know how long until it bounces back? I only took 2 hard pulls for those credit cards. Total inquires total is like 4. My utilization isn't high... i'm currently using $500 out of like $5,000+.

Message 1 of 8
7 REPLIES 7
Revelate
Moderator Emeritus

Re: 50 point drop? Seriously?


@Kohler wrote:

Hi, everyone. Just wanted to share my experience and get feedback. Before my app spree that occured last month this is what my credit profile looked like -

 

4 student loans from 2008 in good standing

2 student loans from 2013 in good standing

1 Collection for $100ish from 2008

 

Credit score - 623.

 

I added 7 new credit cards in March/April of this year. Now Discover has my credit score at 573. Anyone know how long until it bounces back? I only took 2 hard pulls for those credit cards. Total inquires total is like 4. My utilization isn't high... i'm currently using $500 out of like $5,000+.


Back of hand math you cut your AAOA by more than half and may have even dropped below the magic 2 year number depending when those loans were taken out: I napkined it out based on 6 years exactly, but if they were opened Augustish for start of school year, you're likely now being rounded down to 1 year AAOA, whereas before you were likely at or around 4 years.

 

You're probably back above 600 whenever your AAOA returns above the 2 year mark; otherwise call it six or so months for the tradelines to season and the inquiries to fade.  FICO '08 which Discover's score is, is pretty unforgiving on recent and yours was a moderately extreme spree.  Hopefully you got some decent cards in there.

 

ETA: Just looked at your prior posts, you mentioned in another post that you've been disputing information: disputes do all sorts of wonky things to scores as tradeilnes under dispute typically are discounted by the FICO algorithm, all bets scorewise are off on that.




        
Message 2 of 8
user5387
Valued Contributor

Re: 50 point drop? Seriously?

There is a new account hit and AAoA hit, even if you mostly avoid hard pulls.

 

If your initial base score is 623, you may be starting from a weak position.

 

Message 3 of 8
Revelate
Moderator Emeritus

Re: 50 point drop? Seriously?


@user5387 wrote:

There is a new account hit and AAoA hit, even if you mostly avoid hard pulls.

 

If your initial base score is 623, you may be starting from a weak position.

 


Seen this "new account hit" bandied about recently, what exactly is it beyond the potential inquiry damage and the change to AAOA?

 

Haven't seen anything else besides those two, what is the source, and any idea how quanitifiable it is?




        
Message 4 of 8
user5387
Valued Contributor

Re: 50 point drop? Seriously?


@Revelate wrote:

@user5387 wrote:

There is a new account hit and AAoA hit, even if you mostly avoid hard pulls.

 

If your initial base score is 623, you may be starting from a weak position.

 


Seen this "new account hit" bandied about recently, what exactly is it beyond the potential inquiry damage and the change to AAOA?

 

Haven't seen anything else besides those two, what is the source, and any idea how quanitifiable it is?


Some of the details can be found here:

 

http://www.myfico.com/CreditEducation/New-Credit.aspx

 

Message 5 of 8
Revelate
Moderator Emeritus

Re: 50 point drop? Seriously?


@user5387 wrote:

@Revelate wrote:

@user5387 wrote:

There is a new account hit and AAoA hit, even if you mostly avoid hard pulls.

 

If your initial base score is 623, you may be starting from a weak position.

 


Seen this "new account hit" bandied about recently, what exactly is it beyond the potential inquiry damage and the change to AAOA?

 

Haven't seen anything else besides those two, what is the source, and any idea how quanitifiable it is?


Some of the details can be found here:

 

http://www.myfico.com/CreditEducation/New-Credit.aspx

 


How long it's been since you opened a new account

Your FICO® Score may consider the time that has passed since you opened a new credit account, for specific types of accounts.

 

That said, that date might be a while: least on Beacon 5 with revolving accounts, it didn't blink when I added a new credit card 1 year 3 months after the last one, so it's either looking at a much further time horizon, or may be a newer FICO 8 implementation?




        
Message 6 of 8
user5387
Valued Contributor

Re: 50 point drop? Seriously?

This item is interesting:

 

   Your FICO® Score looks at how many new accounts you have by type of account. It also may look at how many of your

   accounts are new accounts.

 

"Proportion of new accounts" is a somewhat different measure than AAoA and inquiry hits.

 

If I have a 20-year-old account, and opened 3 more accounts last Tuesday, then my AAoA will be 5.0 years, but 3/4 of my accounts will be less than a week old.

 

 

 

.

Message 7 of 8
Revelate
Moderator Emeritus

Re: 50 point drop? Seriously?


@user5387 wrote:

This item is interesting:

 

   Your FICO® Score looks at how many new accounts you have by type of account. It also may look at how many of your

   accounts are new accounts.

 

"Proportion of new accounts" is a somewhat different measure than AAoA and inquiry hits.

 

If I have a 20-year-old account, and opened 3 more accounts last Tuesday, then my AAoA will be 5.0 years, but 3/4 of my accounts will be less than a week old.

 

 

 

.


Hrm, that argues for everyone's establishing tradeline farms for the future apparently.  

 

Have to see how my score moves, I'm expecting an AAOA change once I get another tradeline reported: if it just looks as open TL's then I'm at 31% new, if it opens at open and closed, then I'm at 24% new from my last 4 tradeline application spree where I had 6/13 accounts (46%) opened within a 3 month period and the rest of my tradelines were only about a year old... and my Beacon 5.0 upticked because of the potential tradeline anniversary and inquiries fading to grey presumably.  

 

Hard to say, it may either be minor, a new fangled thing, or it could even be marketing honestly: I do know what FICO publishes is purposely vague from a competitive marketplace scenario.

 

Or it could be that FICO considers all of my accounts newly established! Smiley Very Happy

 

 

 

 




        
Message 8 of 8
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