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Average amount of time for score to bounce back

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Established Contributor

Average amount of time for score to bounce back

What has been the average amount of time for a score to bounce back after adding new accounts?

"When you are down in the mouth, remember, everything turned out ok for Jonah."

Current FICO's(by lender) 10/9/12
EX:649, EX:651, TU:683
Message 1 of 9
8 REPLIES
Established Contributor

Re: Average amount of time for score to bounce back

There is no average time. It all has to do with the new account in relation to your current credit profile that is unique to you - CL total, # accounts, type of credit, AAOA, DTI, current derogs, future derogs.

Message 2 of 9
Moderator Emeritus

Re: Average amount of time for score to bounce back

Util changes aside, I've lost 20-25 when adding a CC and most of those returned within 6 months, the rest by a year.

Message 3 of 9
Valued Contributor

Re: Average amount of time for score to bounce back

I'd think it's very dependant upon AAoA. When I added my Walmart card last month I didn't lose any points for the new account on EQ

  • Current: EQ FICO 706, TU FICO 701, EX FICO 706 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $36,700
  • Inquiries (12 Months): EQ 2 TU 1 EX 1 | Most Recent: 1/21/2014
Chase Freedom $9500
DCU Visa $10000
Capital One QS $2000
AMEX BCE $3000
Lowe's CC $8500
WalMart CC $3100
BOA Platinum $600
AMEX Gold NPSL
Message 4 of 9
Moderator Emeritus

Re: Average amount of time for score to bounce back


S7 wrote:

What has been the average amount of time for a score to bounce back after adding new accounts?


You'll see a big increase when your AAoA goes from less than 6 years to greater than 6 years.    I went from over 6 years to under 6 recently... so I'm waiting for the new accounts to age up and put me back over the 6.   I think there is also a jump when you go from less than 1 year to over 1 year but I could be mistaken. 

It seems that AAoA affects you in tiers, if that makes any sense.   Your AAoA will put you in a tier with a high and a low score potential.  The higher your AAoA, the higher your score potential can be!


Starting Score: 08/29/2011 TU 671 EQ 674
Current Score: TU 754 EQ 694 EX 697
Wallet: NFCU Visa Sig 25k, Amex Lowes 22k, NavCheck 15k, Amex PRG, Amex Zync, Discover It 13.5k, Amazon Visa 5k
Platinum Spade Garden Club Member: App Free since 1/1/13. No more apps til who knows when?
MyFICO Fitness Goal: 800s Club!



Take the myFICO Fitness Challenge
Message 5 of 9
Valued Contributor

Re: Average amount of time for score to bounce back

I applied for CSP and BCE on 10/14/12 with a EQ FICO of 729 with 1% utilization. When CSP first reported and with a balance(brought me to 15% utilization) , my FICO dropped to 703. Then when my BCE reported it brought my utilization down to 11% and my EQ FICO went up to 710. It's odd how my went, I don't really understand it. I'm curious when my report updates with 1% utilization.

AMEX: $25,000, CSP: $10,000, Chase Priority Club: $1,500, Freedom: $6000, Discover: $21,000

EQ FICO - 753
TU FICO - 755
EX FICO(AMEX) - 766
Message 6 of 9
Established Contributor

Re: Average amount of time for score to bounce back


S7 wrote:

What has been the average amount of time for a score to bounce back after adding new accounts?


IME the scores have recovered on average about 6 months!

Message 7 of 9
Valued Contributor

Re: Average amount of time for score to bounce back

I would like to to think it's average for everyone, being one year for inquiries and new credit (10% of the FICO pie chart; see also buckets, also known as scorecards, and FICO bell-shaped curve). But my newest credit is one year three months ago, and the Amount of new credit in my EQ score report at myFICO still says Very good rather than Great. But perhaps it's not the actual FICO formula saying so, maybe it's simply a parallel layer of educational guesses which may include stuff such as the score simulator.

I remember having read in these forums that one thought the ding for new credit would be mostly gone by the halfyear line, while an inquiry will stay in full force throughout the year. And then another thing is that one agency may choose the beginning of the month as the cutoff while another may say the end.

Of course you'll never experience that something bounces back cleanly. Something else will have changed between then and later, like the aging of accounts once a month without fail.

Message 8 of 9
Regular Contributor

Re: Average amount of time for score to bounce back


webhopper wrote:

S7 wrote:

What has been the average amount of time for a score to bounce back after adding new accounts?


You'll see a big increase when your AAoA goes from less than 6 years to greater than 6 years.    I went from over 6 years to under 6 recently... so I'm waiting for the new accounts to age up and put me back over the 6.   I think there is also a jump when you go from less than 1 year to over 1 year but I could be mistaken. 

It seems that AAoA affects you in tiers, if that makes any sense.   Your AAoA will put you in a tier with a high and a low score potential.  The higher your AAoA, the higher your score potential can be!


+1

Revolvers: FP Gold $300, FP Platinum $300, Applied Bank Business $500, Kay Jewelers $500, Fingerhut $400, Gettington $300

Installers: KHEAA student loan, Dealer Funding LLC auto loan x2, Crescent Bank auto loan, Acceptance Loan Co personal loan x2

Negatives: 1 collection - 2010 $307, Auto lates - 2 30 days, 60 day, 2009 / 3 30 days, 60 day, 2012

Message 9 of 9