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Valued Contributor
tcbofade
Posts: 2,132
Registered: ‎09-26-2011
0

New credit ding?

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?



Current Scores: EX 671 (FCR) TU08: 648 Wally (TU08). 08/29/14 Last app 05/29/2014.
Gardening until 01 November 2014.
(Thou shalt not app, thou shalt not app, thou shalt not app...)
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Valued Member
Homeowner13
Posts: 36
Registered: ‎05-04-2008
0

Re: New credit ding?

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!

Good Luck


Starting Score: 719
Current Score: 809
Goal Score: 825


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Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: New credit ding?

+1  Typically you will see an initial ding, however it's necessary to develop new positive TLs that will allow your scores to grow.


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

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Current scores after adding $81K in CLs and 2 new cars since July 2013
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Frequent Contributor
Roarmeister
Posts: 325
Registered: ‎04-21-2012
0

Re: New credit ding?

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.  :smileyhappy:  I expect it will take most of the year to bounce back.

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Starting Score: 676 Feb 2008; Current Score: 782 EQ, 814 TU, August 2014; Goal Score: 800 by end of year
Oldest Account reported by EQ: 12 years; EQ AAoA: 5.4 years; EQ Credit Utilization: 3.9%

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