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How many new accounts before score drastically drops?

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Breakthecycle2
Established Contributor

How many new accounts before score drastically drops?

I have had serious credit issues, but over the last 15 months, I have received almost a 150 point increase across the board. Last November, I opened a Target store card, a Capital One card and an Orchard Bank card. I also opened a Crown Jewelers. I sat on them for a year. This week I was approved for a Walmart and Best Buy store accounts. I would like to opened 1 or 2 more, but does anyone have an idea how it would affect my score? I have three inquires in the past year and as of right now (both new accounts are reporting) I have no drop in score.

Starting Score: 454
Current Score: 690
Goal Score: 750


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DI
Super Contributor

Re: How many new accounts before score drastically drops?


@Breakthecycle2 wrote:
I have had serious credit issues, but over the last 15 months, I have received almost a 150 point increase across the board. Last November, I opened a Target store card, a Capital One card and an Orchard Bank card. I also opened a Crown Jewelers. I sat on them for a year. This week I was approved for a Walmart and Best Buy store accounts. I would like to opened 1 or 2 more, but does anyone have an idea how it would affect my score? I have three inquires in the past year and as of right now (both new accounts are reporting) I have no drop in score.

It all depends on what your AAoA is currently.  You can go to creditkarma.com to get the average.  They have what is called the credit report card.  If you have a very short credit history, your FICO scores will be subject to a quick temporary nose dive.  Your mid 600 scores can't afford to calculate new accounts right now.  Your best option is to let your current accounts mature.  

Message Edited by DI on 12-13-2009 06:35 PM
Message 2 of 6
Breakthecycle2
Established Contributor

Re: How many new accounts before score drastically drops?


@DI wrote:

@Breakthecycle2 wrote:
I have had serious credit issues, but over the last 15 months, I have received almost a 150 point increase across the board. Last November, I opened a Target store card, a Capital One card and an Orchard Bank card. I also opened a Crown Jewelers. I sat on them for a year. This week I was approved for a Walmart and Best Buy store accounts. I would like to opened 1 or 2 more, but does anyone have an idea how it would affect my score? I have three inquires in the past year and as of right now (both new accounts are reporting) I have no drop in score.

It all depends on what your AAoA is currently.  You can go to creditkarma.com to get the average.  They have what is called the credit report card.  If you have a very short credit history, your FICO scores will be subject to a quick temporary nose dive.  Your mid 600 scores can't afford to calculate new accounts right now.  Your best option is to let your current accounts mature.  

Message Edited by DI on 12-13-2009 06:35 PM

My average age is 4 years with my longest at exactly 10 years.

 


Starting Score: 454
Current Score: 690
Goal Score: 750


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Message 3 of 6
Anonymous
Not applicable

Re: How many new accounts before score drastically drops?

This is one of those questions where your YMMV tremendously.

 

DH was at 804 with 3 new accounts.  Added new mortgage -10, new car loan, -2, and five new cc's.  Current score is 760 - but all significant drops came from increased utilization on individual cards - when the cards were paid up the scores did not pop up immediately.

 

What is your motivation for adding new cards?  Remember, FICO only needs one.  Sometimes posters on these threads are card-happy, but that is not necessarily the best position to take - make sure it makes good sense for you.

 

Congrats on your most excellent score increases Smiley Wink !

Message 4 of 6
DI
Super Contributor

Re: How many new accounts before score drastically drops?


@Anonymous wrote:

This is one of those questions where your YMMV tremendously.

 

DH was at 804 with 3 new accounts.  Added new mortgage -10, new car loan, -2, and five new cc's.  Current score is 760 - but all significant drops came from increased utilization on individual cards - when the cards were paid up the scores did not pop up immediately.

 

What is your motivation for adding new cards?  Remember, FICO only needs one.  Sometimes posters on these threads are card-happy, but that is not necessarily the best position to take - make sure it makes good sense for you.

 

Congrats on your most excellent score increases Smiley Wink !


Having one card as you can see in the economy isn't a smart idea.   What if that one card was BOA and they decide to close the account.  The FICO score  will take a hit after its no longer reporting.  And one's effort of building credit will have to start over again. 

Message 5 of 6
cobaltnv
Established Contributor

Re: How many new accounts before score drastically drops?

FYI, CreditKarma provides the average age of OPEN accounts. Your FICO score is calculated based on your average age of all accounts.  
 

@DI wrote:

It all depends on what your AAoA is currently.  You can go to creditkarma.com to get the average. 

 

TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

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