Understanding FICO® Scoring

[S7]

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

[bahbahd]

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.

[llecs]

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.

[Jutz]

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

[webhopper]

---

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!

[SwiftTone]

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.

[namvet]

---

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!

[my-own-fico]

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.

[princechristian]

---

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