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New Visitor
ffmsk
Posts: 1
Registered: ‎04-17-2007

Used new card for first time score dropped 3 points? Why?

I received my first credit card when not having them for almost 10 years.  I received the card in Nov 2006 and used it for the first time in March 2007.  They I received a email saying my score dropped 3 points?  I paid the card off ASAP.  Why would it drop?? 
This is the reason I do not like credit cards and only have one because today you need them. 
Regular Contributor
okrogius
Posts: 169
Registered: ‎03-16-2007

Re: Used new card for first time score dropped 3 points? Why?

Sometimes card start reporting only when you use them for the first time.
 
- lower average account age
-more recent newest account
Contributor
antredd67
Posts: 83
Registered: ‎03-22-2007

Re: Used new card for first time score dropped 3 points? Why?

That's another low blow...but i agree..if you haven't been using it Fico sees it as a new file as if you just opened up a brand new credit card.  Remember the way we pay our bills on time and keeping our balances at 10-30% of credit limit are what factor into our score big time.
Regular Contributor
okrogius
Posts: 169
Registered: ‎03-16-2007

Re: Used new card for first time score dropped 3 points? Why?

"if you haven't been using it Fico sees it as a new file as if you just opened up a brand new credit card. "
 
Not accurate. If you open an account in january, and use it for the first time in march, it still reports as having been opened in january. Granted of course it is still a new account (hence the decrease).

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