Re: Guess the cause of my score drop[ Edited ]
11-30-2012 08:10 AM - edited 11-30-2012 08:14 AM
new accounts + high spending =P that's all you had to say lol
As I explained, just one new account added and a small increase in utilization ratio alone will not cause that big a score drop. There have to be pretty special circumstances.
are you trying to say your special?
I guess having a Score Watch issue makes me kind of special
Sounds like you have a handle on it, so really not a huge deal. Thin files tend to swing drastically. It sounds like the high balance/reported UTIL is temporary and for the best long term.
Good luck, I'm sure you'll get a similarly positive swing next month too!
Thanks! I'm still building up the high balance on my Visa Signature though, so until I reach 5k or so and pay it all off, my score will not improve much just yet.
HiLine wrote:With the new card added, my AAoA fell to below 5 months. I had just finished an app spree, but this new account apparently brought the AAoA down to the range that FICO considers a short revolving credit history. It looks like the critical point is at 5 months or so. The penalty for falling below this must be severe, way higher than the 15 points I had lost due to another new account.
In the FICO algorithm, if your AAoA is less than a year, it's automatically calculated at a year is our understanding of it. At least that's the way the report data is presented from various sources.
Really with the way it rounds down, until your AAoA >= 2 years, it's stuck at the bottom for that part of the metric, so anything under that is a wash.
Edit: also not sure on that short-revolving history tag, that may be as a result of new accounts rather than AAoA.
It could be. Can anyone who's been through an app spree confirm this?