topic Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up? in Credit Cards

TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

yudeology101 — Mon, 09 Sep 2013 20:01:24 GMT

I just saw a big drop in TU FICO scores today from 662 to 638 after recent apps (CSP, Citi AAdvantage Gold, AMEX- Delta & PRG all last week). I'm expecting another big drops in scores all across after Citi & CSP TLs starts reporting (probably next month?), I just want to get a clue how long it takes for a big climb again in scores.. Any thoughts? I'm done app'ing for the next year or so, so I'm letting these greats cards age. My current util is 5%, AAOA (with new cards) will be down to 10months or so. Any input would be greatly appreciated!

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

TheConductor — Mon, 09 Sep 2013 22:02:12 GMT

Majority of the impact from inquiries/new accounts will typically be diminished by 6mos out. Majority of the remainder by 1yr.

So your 1-year gardening target is about right.

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

Anonymous — Mon, 09 Sep 2013 22:05:58 GMT

Also, are you sure some of that drop wasn't because of new accounts and reduced AAoA?

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

yudeology101 — Wed, 11 Sep 2013 15:27:45 GMT

@Anonymous wrote:
Also, are you sure some of that drop wasn't because of new accounts and reduced AAoA?

Probably right, nearly all of my new cards (in my signature) started in late June, and I started cloing my old cards (orhcard/crdit one/premier bank x2) opened in early 2012. And the recent 2 prime cards (Citi/CSP - sept 13) have not reported yet, so I'm expecting a bigger score drop. I'm sure the scores will go up, just wanted to know the timeframe to reach 700+ club.

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

JSS3 — Wed, 11 Sep 2013 15:49:21 GMT

I'm still confused about this; specifically about it having an effect for up to six months. Don't your scores drop (only) once when a new account appears? You lose points and some account history when it does appear, ok...but then you continue to lose more over that one new opening for six more months? And this is even as you're keeping your utilization low(which is easier since you have more available credit)?

I originally thought you open an account. Lose a few points from the hard inquiry. Then lose some of your account history. Once your utilization is lowered, then your scores start to climb back up. No?

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

yudeology101 — Wed, 11 Sep 2013 15:58:00 GMT

@JSS3 wrote:
I'm still confused about this; specifically about it having an effect for up to six months. Don't your scores drop (only) once when a new account appears? You lose points and some account history when it does appear, ok...but then you continue to lose more over that one new opening for six more months? And this is even as you're keeping your utilization low(which is easier since you have more available credit)?

I originally thought you open an account. Lose a few points from the hard inquiry. Then lose some of your account history. Once your utilization is lowered, then your scores start to climb back up. No?

I think you're right, shouldn't be confused about anything. I think you lose points upon inquiries (few per INQ- in my case I have 8-10 since June, 6 new TLs showing up since June). I'm assuming that my TU scores were hit due to the fact that I had one of my CC to report a balance which led my utilization gone up to 14%, plus the new INQs from app'ing CSP & Citi & AMEX last week. Well, when my new TLs (CSP, Citi) appear on my report next month or so, I should expect another huge drop in scores. This is all my guess from reading previous threads about score drops & etc.

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

JSS3 — Wed, 11 Sep 2013 16:16:00 GMT

@yudeology101 wrote:
@JSS3 wrote:
I'm still confused about this; specifically about it having an effect for up to six months. Don't your scores drop (only) once when a new account appears? You lose points and some account history when it does appear, ok...but then you continue to lose more over that one new opening for six more months? And this is even as you're keeping your utilization low(which is easier since you have more available credit)?

I originally thought you open an account. Lose a few points from the hard inquiry. Then lose some of your account history. Once your utilization is lowered, then your scores start to climb back up. No?
I think you're right, shouldn't be confused about anything. I think you lose points upon inquiries (few per INQ- in my case I have 8-10 since June, 6 new TLs showing up since June). I'm assuming that my TU scores were hit due to the fact that I had one of my CC to report a balance which led my utilization gone up to 14%, plus the new INQs from app'ing CSP & Citi & AMEX last week. Well, when my new TLs (CSP, Citi) appear on my report next month or so, I should expect another huge drop in scores. This is all my guess from reading previous threads about score drops & etc.

This is what I thought, but I've read posts stating it has an impact for 6 months then virtually no impact at a year. It's seemingly the case despite your utilization(albeit having a higher one hurts it more). Just the fact that you've had an inquiry, you'll be paying for it up to 6 months afterwards...?

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

yudeology101 — Wed, 11 Sep 2013 17:12:41 GMT

@JSS3 wrote:
@yudeology101 wrote:
@JSS3 wrote:
I'm still confused about this; specifically about it having an effect for up to six months. Don't your scores drop (only) once when a new account appears? You lose points and some account history when it does appear, ok...but then you continue to lose more over that one new opening for six more months? And this is even as you're keeping your utilization low(which is easier since you have more available credit)?

I originally thought you open an account. Lose a few points from the hard inquiry. Then lose some of your account history. Once your utilization is lowered, then your scores start to climb back up. No?
I think you're right, shouldn't be confused about anything. I think you lose points upon inquiries (few per INQ- in my case I have 8-10 since June, 6 new TLs showing up since June). I'm assuming that my TU scores were hit due to the fact that I had one of my CC to report a balance which led my utilization gone up to 14%, plus the new INQs from app'ing CSP & Citi & AMEX last week. Well, when my new TLs (CSP, Citi) appear on my report next month or so, I should expect another huge drop in scores. This is all my guess from reading previous threads about score drops & etc.
This is what I thought, but I've read posts stating it has an impact for 6 months then virtually no impact at a year. It's seemingly the case despite your utilization(albeit having a higher one hurts it more). Just the fact that you've had an inquiry, you'll be paying for it up to 6 months afterwards...?

bump?

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

lhcole77 — Wed, 11 Sep 2013 17:43:57 GMT

@yudeology101 wrote:
@JSS3 wrote:
@yudeology101 wrote:
@JSS3 wrote:
I'm still confused about this; specifically about it having an effect for up to six months. Don't your scores drop (only) once when a new account appears? You lose points and some account history when it does appear, ok...but then you continue to lose more over that one new opening for six more months? And this is even as you're keeping your utilization low(which is easier since you have more available credit)?

I originally thought you open an account. Lose a few points from the hard inquiry. Then lose some of your account history. Once your utilization is lowered, then your scores start to climb back up. No?
I think you're right, shouldn't be confused about anything. I think you lose points upon inquiries (few per INQ- in my case I have 8-10 since June, 6 new TLs showing up since June). I'm assuming that my TU scores were hit due to the fact that I had one of my CC to report a balance which led my utilization gone up to 14%, plus the new INQs from app'ing CSP & Citi & AMEX last week. Well, when my new TLs (CSP, Citi) appear on my report next month or so, I should expect another huge drop in scores. This is all my guess from reading previous threads about score drops & etc.
This is what I thought, but I've read posts stating it has an impact for 6 months then virtually no impact at a year. It's seemingly the case despite your utilization(albeit having a higher one hurts it more). Just the fact that you've had an inquiry, you'll be paying for it up to 6 months afterwards...?
bump?

INQs can reduce scores. Lower AAoA can reduce scores. The effects of these has less of an impact on scores starting at the 6 mo mark and has even less of an impact (sometimes none) at the 1 year mark.

Lower UTL can raise scores.

Fewer INQs, greater AAoA and lower UTL = better outcomes in scoring

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

youngandcreditwrthy — Wed, 11 Sep 2013 17:56:52 GMT

Yikes. That's a huge drop, esp given the cards you've got. Pray for no aa!

Goos luck!

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

09Lexie — Wed, 11 Sep 2013 18:07:19 GMT

IMO, your less than 1yr AAOA factored into your drop significantly. Inq's do lessen after 6 mos and does not factor into FICO scoring after 1 yr. the score ding does not continue over 6 mos but what you'll see are the dings for the inq's, the new accts reporting and bal reporting on those new accts. Usually, they do not occur during the same month so it looks like the dings go on forever.

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

lhcole77 — Wed, 11 Sep 2013 18:19:58 GMT

@09Lexie wrote:
IMO, your less than 1yr AAOA factored into your drop significantly. Inq's do lessen after 6 mos and does not factor into FICO scoring after 1 yr. the score ding does not continue over 6 mos but what you'll see are the dings for the inq's, the new accts reporting and bal reporting on those new accts. Usually, they do not occur during the same month so it looks like the dings go on forever.

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

JSS3 — Wed, 11 Sep 2013 18:27:22 GMT

@09Lexie wrote:
IMO, your less than 1yr AAOA factored into your drop significantly. Inq's do lessen after 6 mos and does not factor into FICO scoring after 1 yr. the score ding does not continue over 6 mos but what you'll see are the dings for the inq's, the new accts reporting and bal reporting on those new accts. Usually, they do not occur during the same month so it looks like the dings go on forever.

Thank You! I totally understand now. If you have more than a year's history, the effects of inquiries/shortened AAoA are minimal.

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

iainlbc — Thu, 12 Sep 2013 03:25:53 GMT

Do you bank with Chase or have a previous relationship with them?

I was under the impression the CSP was a 690+ card (better chances if you had a freedom with them for awhie etc.)

Thanks!

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

yudeology101 — Thu, 12 Sep 2013 03:38:04 GMT

@iainlbc wrote:
Do you bank with Chase or have a previous relationship with them?

I was under the impression the CSP was a 690+ card (better chances if you had a freedom with them for awhie etc.)

Thanks!

Yes, I do. I was not expecting to be approved for the CSP at all, since i burned them bad back in 2001. Funny thing is, I didn't even know that I burned them until I applied for Chase Amazon back in June, i called recon and the analyst told me why I burned them before lol. Anyways, with my credit profile & number of new accounts opened when applying for CSP, I thought I had no chance. When I submitted the app, it didn't give me the "denied" msg, but said "need further review", so i called right away and the analyst verified my info and said "congratulations!". You have no idea how great that feeling is! I literally said thank you like 20times. I guess banking with Chase for the past 5+ year helped in my opinion.

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

iainlbc — Thu, 12 Sep 2013 03:49:46 GMT

Very cool! I've been debating switching my banking over to the so they the DDs/income. I think im going to just app the freedom (around 690 now, sig outdated) and grow that for a year or two before CSP. Didn't mean to highjack your thread, thanks for sharing and congrats! What an awesome card

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

yudeology101 — Thu, 12 Sep 2013 03:59:27 GMT

Thank you! I owe everything to this forum and its members. Gluck to you and hope that CSP will be in your hands in just a matter of time.

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

TheConductor — Thu, 12 Sep 2013 21:11:00 GMT

@JSS3 wrote:

Thank You! I totally understand now. If you have more than a year's history, the effects of inquiries/shortened AAoA are minimal.

Well, not minimal, but noticeably less.

The longer your history becomes (and your AAoA along with it), the less impact a new inquiry (or two or three) will have.

When you're starting out, your score is very "sensitive", shall we say. And over time it becomes more resilient, as long as you don't do anything drastic.

Re: TU FICO scores drop after recent apps, how long of wait shoud i expect before climbing back up?

Anonymous — Thu, 12 Sep 2013 22:09:44 GMT

one thing about inquiries-take into account the number too, not just how long. it ill depend on your bucket-there was a 16 point difference between 3 and 4 inquiries under 1 year old for me earlier this year. I saw it go both ways, when i had an inquiry age over 1 year, gained 16 points. When i apped again not long after, immediately lost 16 points.