What does "amount of new credit" entail?

Anonymous · ‎07-31-2009

Venting cut short, I got hit, bought a car, and now my score has gone down 18 points! I read in the faq. that inquiries within 30 days of each other count as one. After toiling and comparing, the only thing that has changed is "amount of new credit." I only have 16% credit usage, so I can't imagine that the loss would be due to the actual purchase. Any ideas? Just for comparison, I'll leave you with this tid-bit: 3 months prior, my score went up 16 points from doing absolutely nothing but paying my bills. I suppose that this is because I only have a 3 year history (since I wanted to be ~responsible~ and didn't have ANYTHING until after college.

smallfry · ‎07-31-2009

New accounts themselves can hurt as well as a drop below a magic threshold for AAofA. This might have caused the score drop if nothing else is even minutely different. Did you recheck all the opening dates of all the tradelines listed even the ones that show closed? Number of accounts with balances?

llecs · ‎07-31-2009

Ditto to smallfry. On average I have lost 20-25 points with each new account being added. Most of those points have returned within 6 months and nearly by 1 yr. In fact I lost these points without AAoA dropping (FICO reads it as a whole number).

I just added at least 2 new TLs this week....can't wait to see the drop.

Anonymous · ‎07-31-2009

I have three new accounts that will all be one year old by Nov 1st (a mini app spree last Oct), but I don't expect to see much of a score bump (even tho EQ and TU both only give me a 'Good' under "Amount of new credit" ). All the INQs are on EX.

Message Edited by writemikep on 07-31-2009 10:27 AM

smallfry · ‎07-31-2009

@Anonymous wrote:
I have three new accounts that will all be one year old by Nov 1st (a mini app spree last Oct), but I don't expect to see much of a score bump (even tho EQ and TU both only give me a 'Good' under "Amount of new credit" ). All the INQs are on EX.
Message Edited by writemikep on 07-31-2009 10:27 AM

I was just looking at your scores EQ and TU. What happened on the TU this month?

Anonymous · ‎07-31-2009

My two open AMEX TLs were re-aged from 2000 back to 1987, increasing my oldest account age and AAoA for all three CRAs. You can see the thread on it here.

smallfry · ‎08-01-2009

@Anonymous wrote:
My two open AMEX TLs were re-aged from 2000 back to 1987, increasing my oldest account age and AAoA for all three CRAs. You can see the thread on it here.

Very nice.