For revolving accounts, I don't think it makes any difference unless AAoA drops. You might take a penatly for the inquiries, though. Installment loans, however, I have noticed a point drop for a large new installment reporting. There is either some kind of new account penalty or possibly the high utilization on a brand new installment may have some impact.
EX:694 TU:744 EQ:777
It really varies depending on your credit profile. I opened up four new TL between April and May and my score (TU) remained the same.
@Anonymous-own-fico wrote:The penalty for new credit will diminish (especially after the first half a year, although not all that much to begin with), but "there's no fade on the inq: it's there for 12 months, and then poof, it no longer counts."
Hmm. Not certain I can rightly test that: granted total inquiry count is graded on a step function no doubt, but what's the source to state that a single inquiry at 1 month counts the same as a single inquiry at 11 months?
Think that may be oversimplifying in the opposite direction than we normally pontificate?
@rhall2009 wrote:
Does the same happen with installment accounts? I just opened 2
Pretty much.
Credit cards in initial reporting and effect on scores are more complicated because there's several more revolving utilization calculations which aren't a concern for installment loans.
I haven't experienced DS's comment regarding new installment loans, I only know one place in the FICO algorithm where the amount matters (some LOC's/HELOC's report as installment apparently north of some large number like 35K), otherwise, it's all percentages and step function counts: I'm suspicious of a low dollar new installment loan being treated differently than a high dollar one, and in my thick file era, new installment tradelines didn't move my score at all (as I have always had 2+ reporting) unless it changed my AAOA which one out of 3 did.
Not certain how that would work either from an algorithm perspective: DTI which is arguably the dominant player in installment loan underwriting mandates income being known, and FICO specifically doesn't have nor use that information. There's some installment loan type industry options (old IL, current Auto, maybe mortgage in the future) which we don't know much about and it might play a bigger factor there. Maybe it's something I can test later as even if I do stumble into non-trivial assets, I'll still likely be financing a part of every purchase anyway for credit score purposes in the future... e.g. I could delay buying a new car until some point where my AAOA won't change as a result of the new tradeline.
Update: Capital One is finally reporting to the 3 bureaus and my FICO score didnt change. Today I got an alert from scorewatch and my score did go down 4 points because Walmart is reporting now as well to the bureaus. Walmart reports very fast as I was just approved and still havent received the card yet LOL No idea what Transunion and Experian scores are right now as I am just more focused on building more positive TL's and clean reports.
@jacksont1981 wrote:Hi everyone,
I wanted to know what is the initial impact to scores once new credit cards start reporting to the bureaus? Besides the few points being lost from the hard inquiry, how much more points will be lost once they start reporting to the 3 bureaus. Also how fast do they recover? 1 month, 2 months possibly longer?
Thank you in advance for your responses!
I've added 8 new accounts in the past 2 months, 6 of which have reported, and my scores keep going up. I just had one account report this week, and an inquiry added, and my EQ went up 4 points to 766, and TU up 5 points to 761. The past few weeks, each new account has actually INCREASED my score, probably due to the benefits of a decrease in utilization. Of course, as has been stated, everybody's results will be different.
:::: FICO scores: EX: 747 (7/25/14) ::: EQ: 766 (7/25/14) ::: TU: 761 (7/22/14)