Understanding FICO® Scoring

[memphisken]

Yesterday my score was 672. Today my score has dropped to 645. The only thing has changed is I was approved for a Cap1 secured and a JC Penny card. What has happend to my lovely score.

There are the reasons it gave me:

This score decrease may be caused by these 4 new reasons:

• You have a public record or collection on your credit report.
• You have a short credit history.
• You've recently been looking for credit.
• You have a recent public record or collection on your credit report.

PLEASE HELP!!!!! THX

[JM-AM]

You were dinged for the INQ's and new TL's. In a few months your scores will rebound. 

Congrats 

Good Luck

[llecs]

OP, are the new TLs reporting?

Remember, take the SW alerts with a grain of salt. Many things could not listed in those reasons could have dropped your score. For example, I once got a SW alert saying my FICO score increased 20 points because I added an inquiry. The inquiry didn't increase my score, but a dropped baddie which wasn't mentioned, increased my EQ. Your drop could have been compounded by lower util and so forth. And yes, on the 2 TLs alone, your score could have dropped that much if reporting.

[memphisken]

Thx for responding. So far just Pennies is reporting and Cap1 has the inquiry. I'm sure it will fall more once Cap1 report. Is this a good or a bad?

[llecs]

It's not uncommon to lose points when you add a new account. IME, I've lost 20-25 points per CC and regained most all of those points wiithin 4-6 months and regained the rest by a year. YMMV on several factors.

Do you have other CCs reporting now? Did the JCP report w/ a balance and did your utilization increase?

[memphisken]

Walmart $700cl $24 bal

Kays $800cl $0 bal

JC Penny $200cl $0 bal

Thats it.........

[llecs]

IMO, something else happened to EQ to cause the drop. Adding the 3rd CC, JCP, shouldn't drop your FICO score by 27. I would have guessed a break even or even a slight gain due to improved mix of credit. I'd study EQ a bit closer if you have other old accounts on there.

[JM-AM]

Add the INQ's plus the new account.

Plus are the other accounts new as in less then a year old?

Cards need to age to help offset the new TL's. 

[memphisken]

All 3 are less than a year old. I guess it's time for a healing process. I pull a brand new report less than 30 mins ago. Nothing else has changed.

[JM-AM]

Let the cards age and use them responsibly. Check the forums on the cards you have to see when you can ask for CLI's. Build some history minimum of a year before applying for anything else. Establishing credit for the 1st time and or rebuilding credit for past mistakes takes time. 

Your scores will rebound after time. usually 6 months to a year.

Good Luck