01-04-2013 10:51 AM
I did some searching and found a few older threads with varying opnions on this one, but if memory serves, I think I remember a penalty of sorts negatively affecting one's Fico score for some time after opening a new account.
As it's been about five months since I last opened an account, I'm hoping for a score bump sometime next month...
Does that sound right?
01-05-2013 09:15 PM
Your ding on your score has to do with a few things. First of all it is a credit inquiry, having those will lower your score. Second, New accounts lower your account age average. Lastly If you carry a balance it could lower your score due to Credit Utilization. So to say it will come right back on a set time frame is hard to say. After I have opened accounts it has taken between 6 months to a year to come all the way back! My credit history is long so a new card doesn't afftect my credit age much. If you are new to credit then a new cc could cut your age in half.
My opinion around 6 months you should start to see the increase again.
Hope that helps!
01-05-2013 09:20 PM
+1 Typically you will see an initial ding, however it's necessary to develop new positive TLs that will allow your scores to grow.
01-06-2013 05:08 PM
FWIW, I applied for 2 cards last July 30 and added some additional debt as well as lowered by utilization %. My Equifax score went from 800 to 761. It was only last week that my score started to come back up and even then it was 1 measly point. I expect it will take most of the year to bounce back.
myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.>> About myFICO