11-20-2012 11:00 AM
Hi, I am hoping someone can offer advice for my situation.
It seems that looking at a graph of my credit score over time that after I opened a new credit card my credit score dropped about 20 points. I believe the reason is that although my credit history is long, going all the way back to 1990 for my first credit card, I have only had that one credit card. The reason for this is that I have lived overseas for most of that time. I simply kept that one credit card open for the odd times that I travelled back to the US and to send Christmas and birthday gifts to family in the US. I am grateful that I kept the card open because at least I have some basic credit history and my credit is very clean.
When I returned to the US about a year ago I opened up an AMEX charge card. I didn't really notice a drop in my credit score. Next, I got a new visa a couple of months ago and looking at my credit history I notice that when I opened that card my credit score seems to have dropped 20 points. Is it because the average length of my credit accounts now got lowered because of the new card? If I close that newer card would the average age of my accounts go up again?
Thanks for anyone who can help me with this question. Cheers, CE
11-20-2012 11:46 AM
Welcome to the forums....
When ever you open a new account it will affect your AAoA...if you close your account your AAoA will not change since a + TL will stay on your CR for at least 10 years.
Best bet is to let your accounts age and treat them well and you should see your score recover..
Best of luck!!
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO