Does score drop after inquiry AND account opening?

[Revelate]

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@Anonymous wrote:

It was a revolving line, technically it was a KAY charge card. But BBS is right, I don't know how much of that drop was because of the new account and how much was because of the AAoA going under 5.  This was my fourth TL that brought me under 5 years AAoA, and I've continually added TLs since then.

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Generally the way to test for an AAOA breakpoint is to spree over it, which sounds like you have and new credit shouldn't be a factor if it was no change /  nc /  nc / drop on the 5 year AAOA breakpoint as you intimate.

What was the last account you picked up the Kay card, and how much before that?

[Anonymous]

I'm an outlier I guess. I have opened ALOT of accts in the last year including 9 or so in the last 30 days. Add to that a crap ton of inquiries, like 20+ per bureau, most recent. My scores were around 650-670 before and have all actually increased. TU is now 751 (was 680)but that's mostly due to last baddie falling off. The other two have increased 5-12 pts. My AAOA is crap because I have almost no old accts. I keep waiting on the 25+ point drop but it hasn't hit at this point. There's only 1 acct that has yet to report. All others are showing. .

[Anonymous]

Unfortunately, it's tough to guage the scoring impact of adding a bunch of new accounts when you throw another major variable into the mix such as a final baddie coming off.

[Anonymous]

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@Anonymous wrote:

Unfortunately, it's tough to guage the scoring impact of adding a bunch of new accounts when you throw another major variable into the mix such as a final baddie coming off.

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You're correct but the only CB where that happened was TU.  I did see a 10 pt drop a few weeks ago on TU, after the 68 pt increase from the last baddie falling off. But since then it has come up higher than it was.  So it went from 680 --> 747 (last baddie removed) --> 737 (multiple new accts and inquiries) -->751 (further new accts / inquiries) --> 756 (today). This is all in about 3 weeks time.

The other two bureau scores have gone up also (FICO, not FAKO) by 5-12 pts and the same old baddies are still reporting.   They are all about to fall off in the next few months anyway, which is why I am doing all this now.  My reports will be clean and have time to age and grow over the next two years as I plan to buy a home and also eventually apply for the major cards that I want.   Any score decrease I might see will be negated by the boost caused by the badies coming off.  

[Anonymous]

Ok, just to report back in on this..The initial inquiry lost on experian was 3 points. When the new account posted to experian I lost another 18 points..Will see what hit takes place on TU and EQ

[SouthJamaica]

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@Anonymous wrote:

Ok, I really dont know if I'm asking a redundant question. I know you lose points for a hard pull or inquiry when applying for a new card. Do you then lose more points once the account starts posting to the bureaus? Just got an amex, lost 3 points on experian. Curious to whether I'm in for another hit once the account posts which I'm told is usually two billing cycles with them.

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You don't always lose points for an inquiry and you don't always lose points for a new account.

[Anonymous]

If you've opened another account within the last year you may lose less points than if it's been over a year since you opened your last account... because 1 year on newest account is a threshold that could be crossed with the addition of a new account.  Just something to think about.

[sarge12]

Although an inquerie and new account can lower a score substantially, the added credit availability can result in lower utilization which maght raise score. There are so many factors that opening new account affects...AAoA, and such that the overall effect on score varies widely, and is impossible to predict. As a general rule opening a new account will lower score for a while, but will lead to higher scores in a few years than would have been possible otherwise. I have sometimes expected a big drop when I opened 3 new accounts in a 2 month period, and the drop in score was minimal if it dropped at all, probably due to having over 10 credit cards already. Since the credit scoring alogorithms are proprietary and a trade secret, noone can accurately predict every scenario. You can after a while make better educated guesses based on the past history of how your score reacted in the past.