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Do new accounts themselves actually drop scores?

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Thomas_Thumb
Senior Contributor

Re: Do new accounts themselves actually drop scores?

Below is a generalized illustration from FICO showing that clean and dirty are indeed evaluated differently with respect to weighting of factors. Even clean scorecards are evaluated differently one to the other but, the major differences are dirty vs clean. It is likely new accounts, as well as inquiries, could be weighed more heavily with dirty files.

 

Interestingly, based on the below illustration, a long credit history counts for less with dirty files.

 

Fico segmented scorecards.gif

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 31 of 35
Anonymous
Not applicable

Re: Do new accounts themselves actually drop scores?


@oilcan12 wrote:

Unless I missed it, you still haven't answered the question about how much your AAoA changed.

 

 


Back in Post 4 on page 1 I mentioned that my AAoA as a result of the 3 new accounts will remain unchanged... 7 years before the spree and 7 years after the spree.

 

Perhaps because my file is dirty with 2 major late payments a few years back I am being penalized to a greater degree than someone with a clean file that opens 3 new accounts.  That's all I can really come up with to justify the 22 point drop from 2 new accounts reporting.

Message 32 of 35
JLK93
Established Contributor

Re: Do new accounts themselves actually drop scores?


@Thomas_Thumb wrote:

Below is a generalized illustration from FICO showing that clean and dirty are indeed evaluated differently with respect to weighting of factors. Even clean scorecards are evaluated differently one to the other but, the major differences are dirty vs clean. It is likely new accounts, as well as inquiries, could be weighed more heavily with dirty files.

 

Interestingly, based on the below illustration, a long credit history counts for less with dirty files.

 

Fico segmented scorecards.gif


Interesting chart.

Message 33 of 35
JLK93
Established Contributor

Re: Do new accounts themselves actually drop scores?


@Anonymous wrote:

@oilcan12 wrote:

Unless I missed it, you still haven't answered the question about how much your AAoA changed.

 

 


Back in Post 4 on page 1 I mentioned that my AAoA as a result of the 3 new accounts will remain unchanged... 7 years before the spree and 7 years after the spree.

 

Perhaps because my file is dirty with 2 major late payments a few years back I am being penalized to a greater degree than someone with a clean file that opens 3 new accounts.  That's all I can really come up with to justify the 22 point drop from 2 new accounts reporting.


Did you check to see if there were any recent updates from your derogatories?

Message 34 of 35
Anonymous
Not applicable

Re: Do new accounts themselves actually drop scores?

What type of updates?  They are late payments that I've been unable to remove from my reports, so they just continue to age.  One is a 90 day late and the other a 120 which from my understanding don't really lose their impact after 2 years the way a 30 or 60 would.  The 90 day late is coming up on 2 years and the 120 is 3.5 years old at this point.  If there is a possible threshold that may pass it may be when the 90 crosses 2 years, then my last major derog will be > 2 years old.  I don't anticipate any great gain there, maybe a couple of points.  I don't think there's anything related to my 2 derogs that could have impacted my 22 point drop at this point.  I would think the only thing with respect to them would be if I were late again (even 30 days) as it would again magnify those previous major lates.

Message 35 of 35
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