12-14-2012 08:09 AM
I was enjoying a score of 779 in FICO so I decided to open three credit cards to chase AA miles. The first one was an AmEx SPG then two cards from Citi. I used the AmEx first because of the easy requirement in order to get the reward. It wasn't until after the first Citi card reported that an alert from MyFico triggered my 750 target , I then noticed two 30-point hits from both cards reporting that brought my score to 752 then 723. I'm now concerned that when I start using the third card that it will bring the score down more. Was I wrong to think that inquiries/balance reporting would have only cost me 5-10 points for each card? What are your experiences? Thanks.
12-14-2012 08:39 AM
Did the added CCs report with a balance thereby increasing util?
IME, I've lost 20-25 per new CC reporting factoring out util. I've typically regained most of those points inside of 6 months with a remainder by a year.
12-14-2012 10:20 AM
The effect of new inquiries and new accounts varies depending upon the file categorization ("bucket") of the consumer.
Higher FICO achievers usually dont have many new accounts, and thus their addition is viewed as more of an anomoly than when added to lower FICO scorers.
It is not uncommon for higher achievers to see score changes that are quite different from those of normal consumers in many of the FICO scoring categories.
Additionally, the impact goes beyond that of only the new credit scoring category. With higher scores, the consumer almost invariably has a relatively high average age of accounts. Adding three new TLs with zero age most likely had a proportionally higher effect on scoring of avg age of accounts.
I would suspect that might be the main culprit......
Use of the new cards is not the triggering factor. Once the credtior has established the account in their records, they can report regardless of whether the card has been "activated" and used.
12-15-2012 02:02 PM
If you had a low amount of total accounts reporting the hit on AAoA combined with the new inquiries might have been enough to pull you down. If you reported new balances with the new accounts that may have dragged you down as well.
I recently opened 4 new accounts and got a 30 point drop (on WM FICO) down to 676, one card is yet to report and I also let a card report 50% util on accident, my AAoA dropped from about 2.5 years to 9 months and overall util slightly above 12%. Since I didn't had any true FICO scores before the opening of my WM card I can only guess the damage that the inquiries made before reporting the accounts. I expect to recover nearly all points in 3-6 months, probably the same for you.
Forums posts are not provided or commissioned by FICO. Forums posts have not been reviewed, approved or otherwise endorsed by FICO. It is not FICO's responsibility to ensure all posts and/or questions are answered.Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more
FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.