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Bones
Posts: 74
Registered: ‎04-08-2012
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Understanding Your Score - Equifax

Below is a paste from my Equifax Complete credit report.  Has anyone else had this as a reason for hurting your score?  If so, can we assume that after a year from opening the new credit accounts this reason would be removed?  Or does anybody know what % it takes to have this reason removed and a score increase?  As you can see my newly opened credit accounts to all credit accounts is 90% in the last 12 months.  Just curious if 30%, 40%, 50%, etc, would be enough to take a jump in score.

 

 

 

 

You have a high percentage of recently opened accounts.
Your credit report shows that your percentage of recently opened accounts as compared to all of your credit accounts is too high. People who have opened multiple credit accounts within a short period of time are seen as higher risk by lenders. Your credit score was hurt by these recently opened accounts. Be sure to apply for and open new accounts only as needed.

ic_red_minus_small.gif    

Your percentage of credit accounts that have been opened in the last 12 months: 90%
Equifax 760+ Club icon_question_mark_square.gif
About 76% of Equifax 760+ Club members have opened less than 7% of their credit accounts within the last 12 months.

 

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PSouz
Posts: 214
Registered: ‎03-25-2013
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Re: Understanding Your Score - Equifax


Bones wrote:

Below is a paste from my Equifax Complete credit report.  Has anyone else had this as a reason for hurting your score?  If so, can we assume that after a year from opening the new credit accounts this reason would be removed?  Or does anybody know what % it takes to have this reason removed and a score increase?  As you can see my newly opened credit accounts to all credit accounts is 90% in the last 12 months.  Just curious if 30%, 40%, 50%, etc, would be enough to take a jump in score.

 

 

 

 

You have a high percentage of recently opened accounts.
Your credit report shows that your percentage of recently opened accounts as compared to all of your credit accounts is too high. People who have opened multiple credit accounts within a short period of time are seen as higher risk by lenders. Your credit score was hurt by these recently opened accounts. Be sure to apply for and open new accounts only as needed.

ic_red_minus_small.gif    

Your percentage of credit accounts that have been opened in the last 12 months: 90%
Equifax 760+ Club icon_question_mark_square.gif
About 76% of Equifax 760+ Club members have opened less than 7% of their credit accounts within the last 12 months.

 


uh oh, I have opened all of my credit in the past year and 65% of it in the last month. hopefully when I get my free EQ from DCU next month my score doesn't take a big hit from this.








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BrokaToe
Posts: 726
Registered: ‎05-12-2012
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Re: Understanding Your Score - Equifax

Most definitely new accounts will bring your score down as they report. Sometimes if you're new to credit adding 1 or 2 cards can cause an increase in score, but after the first couple of cards then new accounts may cause a decrease.

 

This is only a temporary drop however, usually within 3 months or so your score will begin to climb back up.

 

But I have noticed that by adding a new trade line with a sizeable limit can actually increase your score when it first reports, of course this will all depend on current utilization.


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tcbofade
Posts: 2,310
Registered: ‎09-26-2011
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Re: Understanding Your Score - Equifax

Hmmm.  I didn't know that either.

 

Right now, I've got 32 "active" credit accounts...six of them opened in the last 12 months.  The last one was in August of 12.

 

I wonder if this will help my EQ score come August...



Current Scores: EX 671 (FCR) TU08: 638 Wally (TU08).10/11//14 Last app 05/29/2014.
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Established Contributor
BrokaToe
Posts: 726
Registered: ‎05-12-2012
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Re: Understanding Your Score - Equifax


tcbofade wrote:

Hmmm.  I didn't know that either.

 

Right now, I've got 32 "active" credit accounts...six of them opened in the last 12 months.  The last one was in August of 12.

 

I wonder if this will help my EQ score come August...


interesting thought tcbofade. That would definitely be something to keep an eye out for. If you see a small jump in August and nothing else has changed, then that could be the reason.  If you don't mind me asking, are all 32 of those accounts credit cards? :smileyvery-happy:


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NJTurnpike
Posts: 662
Registered: ‎02-20-2013
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Re: Understanding Your Score - Equifax

32! that can't possibly be 32 credit cards is it?


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LS2982
Posts: 15,434
Registered: ‎04-09-2011
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Re: Understanding Your Score - Equifax


Bones wrote:

Below is a paste from my Equifax Complete credit report.  Has anyone else had this as a reason for hurting your score?  If so, can we assume that after a year from opening the new credit accounts this reason would be removed?  Or does anybody know what % it takes to have this reason removed and a score increase?  As you can see my newly opened credit accounts to all credit accounts is 90% in the last 12 months.  Just curious if 30%, 40%, 50%, etc, would be enough to take a jump in score.

 

 

 

 

You have a high percentage of recently opened accounts.
Your credit report shows that your percentage of recently opened accounts as compared to all of your credit accounts is too high. People who have opened multiple credit accounts within a short period of time are seen as higher risk by lenders. Your credit score was hurt by these recently opened accounts. Be sure to apply for and open new accounts only as needed.

ic_red_minus_small.gif    

Your percentage of credit accounts that have been opened in the last 12 months: 90%
Equifax 760+ Club icon_question_mark_square.gif
About 76% of Equifax 760+ Club members have opened less than 7% of their credit accounts within the last 12 months.

 


They are comparing your olest account to all of your other accounts.




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webhopper
Posts: 7,230
Registered: ‎09-16-2011
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Re: Understanding Your Score - Equifax

Yes; your score takes a hit for opening a lot of new accounts... that's why its important to make sure you really will use the card long term when you apply for it... otherwise you're just shooting yourself in the foot.

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Bones
Posts: 74
Registered: ‎04-08-2012
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Re: Understanding Your Score - Equifax

[ Edited ]

Yes, I knew opening the accounts would reduce my AAoA and I would take a big drop in my scores.  What I am trying to determine is what percentage EQ is needing to remove the negative indicator as a reason for a score drop.  Just exactly what percentage can you open in a year and not have that used as a reason for hurting your score, according to EQ?

 

As you see I am at 90% of all my credit accounts opened in the last 12 months. But what if I only had 60% or 30% opened in the last year, would that be a negative as well? Figured someone that subscribed to one of the EQ packages would have some info and perhaps noticedthis under their report.  Curious to if someone who did open a lot of accounts had a % number on their account I could use for a reference.

 

If someone had the same 'hurting my score' comment as me, but yet they had 50% opened in the last year compared to all credit accounts, then I would have a better idea of what or how many of my cards needs to be a year old to make a difference according to EQ.

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LS2982
Posts: 15,434
Registered: ‎04-09-2011
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Re: Understanding Your Score - Equifax


Bones wrote:

Yes, I knew opening the accounts would reduce my AAoA and I would take a big drop in my scores.  What I am trying to determine is what percentage EQ is needing to remove the negative indicator as a reason for a score drop.  Just exactly what percentage can you open in a year and not have that used as a reason for hurting your score, according to EQ?

 

As you see I am at 90% of all my credit accounts opened in the last 12 months. But what if I only had 60% or 30% opened in the last year, would that be a negative as well? Figured someone that subscribed to one of the EQ packages would have some info and perhaps noticedthis under their report.  Curious to if someone who did open a lot of accounts had a % number on their account I could use for a reference.

 

If someone had the same 'hurting my score' comment as me, but yet they had 50% opened in the last year compared to all credit accounts, then I would have a better idea of what or how many of my cards needs to be a year old to make a difference according to EQ.


I would think 30% and lower would resolve that factor.




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Starting Score:
EX (PLUS) 583 EQ FICO 565 TU FICO 590 3/15/2011 / Goal Scores: 720
Current Score: EX FICO (PSECU) 671 (myFICO) N/A / EQ FICO 679 / TU08 FICO 678 / TU VS 706 3/6/2014

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