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Frequent Contributor
credit08
Posts: 386
Registered: ‎03-27-2008

will one more CC cause big decrease on score

Quick one guys, I would like to BT to a new CC but I have 35 accts reported on my CR"s my FICO"S are good the highest being 793 I don"t know about the other two I have not checked them lately. I have read on the forum that the ideal number of accounts is 29 after that your FICO may take a hit I need you guys opinions on this one. It definitely would help me save some money on finance charges to do BT thing but I do not want to commit credit suicide by doing so. All advice would be appreciated. Thanks Credit 08
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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: will one more CC cause big decrease on score

What kind of feedback are you getting on screen two of your FICO reports, where it lists the positives and negatives (negatives only for EX)?
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Frequent Contributor
credit08
Posts: 386
Registered: ‎03-27-2008

Re: will one more CC cause big decrease on score

[ Edited ]
Thanks hauling I do not have any recent FICO"S for Ex or TU I only have the one I just purchased from EQ which is 793.The last 3N1 FICO that I pulled was in 2005 then the scores: EX was 757, TU 790 EQ746 it said that I did not have anything negatively affecting my score other the the recent account openings and the INQ"s that was associated with them. It also stated that these reasons was considered picky and had no big effect on my overall FICO scores. Sorry this reply is so long I hope this the right info you requested. Thanks Credit 08


Message Edited by credit08 on 05-14-2008 12:55 PM
Moderator Emeritus
fused
Posts: 16,243
Registered: ‎03-12-2007

Re: will one more CC cause big decrease on score

If your scores are still in the mid to high 700's, a new CC reporting will drop your scores at least 15 points (my guess).
 
- 5-10  point drop for a new inq
 
- 10-15 point drop for a new account re-aging your credit file
 
some have reported a bigger loss in points with scores similar to yours
Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007

Re: will one more CC cause big decrease on score

For an indication of what a new credit card will do to your FICO score, consult my handy little chart here: http://www.allaboutthebenjamins.org/creditcards/page1.html
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in a credit-scoring postnuclear Stone Age...
Valued Contributor
TheNewWorldMan
Posts: 2,374
Registered: ‎03-15-2007

Re: will one more CC cause big decrease on score



fused wrote:
If your scores are still in the mid to high 700's, a new CC reporting will drop your scores at least 15 points (my guess).


- 5-10 point drop for a new inq


- 10-15 point drop for a new account re-aging your credit file


some have reported a bigger loss in points with scores similar to yours





Actually, if he already has 29 accounts, a new account isn't going to significantly affect average age of accounts. Now, if he only had two or three accounts, and the average age was 12, then yes, a new account would pull that variable down considerably.

This is why I recommend young people get several accounts as soon as their FICOs hit 700. If you begin building inertia early, when you go to add a mortgage or car note a few years down the road, your average age of accounts won't take a significant hit.
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in a credit-scoring postnuclear Stone Age...
Frequent Contributor
credit08
Posts: 386
Registered: ‎03-27-2008

Re: will one more CC cause big decrease on score

Thanks TNWM for insight EQ says my average account age is 6.5 yrs I guess from the last CC"s i applied for.
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fused
Posts: 16,243
Registered: ‎03-12-2007

Re: will one more CC cause big decrease on score



TheNewWorldMan wrote:


Actually, if he already has 29 accounts, a new account isn't going to significantly affect average age of accounts.

Ooops, somehow I missed this!:smileysurprised:
Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007

Re: will one more CC cause big decrease on score

I wouldn't be too concerned about the possible red flag for the welcome you now have 30 accounts reporting. Go for it. :smileyhappy:
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haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: will one more CC cause big decrease on score


smallfry wrote:
I wouldn't be too concerned about the possible red flag for the welcome you now have 30 accounts reporting. Go for it. :smileyhappy:


That's what I was questioning. I think that once you're flagged for 30+ accounts, one more isn't going to do anything to hurt you in that department.

But with scores as high as yours, I still think you're going to get a score hit. I've been trying to figure out if there are two separate penalties for a new account, one for lowering your average age, and one for simply having an account under one year of age. (Plus the inq, which is a separate category: "Seeking new credit.")

If this is correct, then you can still get a hit for an account under a year of age, even if you have so many accounts that you don't get particularly re-aged. If not, then you can probably go ahead and grab a card without losing many points.

If you decide to to do this, please accept my thanks for being my guinea pig, and do let us know what happened to your scores.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

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