Posts: 3,355
Registered: ‎10-19-2012
Re: Guess the cause of my score drop
[ Edited ]

RonDawg wrote:

HiLine wrote:

distantarray wrote:

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. :smileyhappy:

are you trying to say your special? :smileyhappy:

I guess having a Score Watch issue makes me kind of special :cattongue:


Jutz wrote:

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. :smileyhappy:


Revelate wrote:

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. :catfrustrated:

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? :catvery-happy: