topic Re: By how many points does each new card drop your FICO? in Credit Cards

By how many points does each new card drop your FICO?

JoshNurse — Mon, 07 Jul 2014 03:29:17 GMT

By how many points does each new card drop your FICO?

I plan to go to on a second spree of about 5 more cards and stop for several years. I just want to hit 20.

Re: By how many points does each new card drop your FICO?

myjourney — Mon, 07 Jul 2014 03:31:52 GMT

3-5 pts per HP

3-5 pts per new TL reporting

YMMV depending on size of CR's (thick or thin)

Re: By how many points does each new card drop your FICO?

juggalo9er — Mon, 07 Jul 2014 03:45:36 GMT

@myjourney wrote:
3-5 pts per HP
3-5 pts per new TL reporting
YMMV depending on size of CR's (thick or thin)

agreed, it really depends on the file. when i obtained my second card out of bk i saw the 3 point ding, when the card started reporting however i saw a 19 point boost. keep in mind utilization was not a factor as i was at 4%. i believe at times a greater mix of credit (3) cards gives you the biggest bang for your buck.

Re: By how many points does each new card drop your FICO?

JoshNurse — Mon, 07 Jul 2014 03:45:59 GMT

Hi what is TL?

Re: By how many points does each new card drop your FICO?

Kenny — Mon, 07 Jul 2014 03:47:32 GMT

@JoshNurse wrote:
Hi what is TL?

TL = trade line

Re: By how many points does each new card drop your FICO?

juggalo9er — Mon, 07 Jul 2014 03:47:39 GMT

tradeline

@JoshNurse wrote:
Hi what is TL?

Re: By how many points does each new card drop your FICO?

pip3man — Mon, 07 Jul 2014 04:12:42 GMT

From my recent personal experience, around April/May I started an app spree with an EQ credit score of 763 and 1 inquiry each on all 3 bureaus. Post app spree I added 7 new tradelines (11 actually cos one Macys card reports under 4 seperate accounts) and I racked up 5 INQ on EQ and my EQ FICO tanked to 728.

Re: By how many points does each new card drop your FICO?

pip3man — Mon, 07 Jul 2014 04:24:04 GMT

In addition to the above my AAOA dipped to 7months (oldest open account is 3yrs while oldest closed account is 4yrs) and due to high utilization this period, my final resting score is 663 as of today. That's down from 728 post app spree

Re: By how many points does each new card drop your FICO?

myjourney — Mon, 07 Jul 2014 04:38:50 GMT

@pip3man wrote:
In addition to the above my AAOA dipped to 7months (oldest open account is 3yrs while oldest closed account is 4yrs) and due to high utilization this period, my final resting score is 663 as of today. That's down from 728 post app spree

3-5 pts per HP

3-5 pts per new TL reporting

So basically your lost 4.5 per each with a substantial hit to AAoA

Re: By how many points does each new card drop your FICO?

JoshNurse — Mon, 07 Jul 2014 05:36:14 GMT

So those 5 HP's ended up costing 20 points each? You started at 763 and ended at 663.

I am scared now. Can you atleast tell me which hard pull gave you more than one trade line?

Re: By how many points does each new card drop your FICO?

myjourney — Mon, 07 Jul 2014 05:38:50 GMT

@JoshNurse wrote:
So those 5 HP's ended up costing 20 points each? You started at 763 and ended at 663.

I am scared now. Can you atleast tell me which hard pull gave you more than one trade line?

But that person added 11 new TL's which was roughly 4.5 for each HP and each TL reporting

So that's the difference here the general rule still applies

Re: By how many points does each new card drop your FICO?

pip3man — Mon, 07 Jul 2014 11:47:05 GMT

@myjourney wrote:
@JoshNurse wrote:
So those 5 HP's ended up costing 20 points each? You started at 763 and ended at 663.

I am scared now. Can you atleast tell me which hard pull gave you more than one trade line?
But that person added 11 new TL's which was roughly 4.5 for each HP and each TL reporting
So that's the difference here the general rule still applies

My bad it was 10 new tradelines I added not 11. The CC I already had accounts for the 11th. I think the points drop was more to the fact that my AAOA declined substianitially, u know going from 3yrs to barely over 6months. The annoying part of it is, out of the 4 new inquiries I ended up with on EQ ONLY one resulted in a new account and that was Discover. The remaining 3 (DCU, PENFED & WELLS FARGO) were all wasted HP smh but it's alright I could deal with them for now

Re: By how many points does each new card drop your FICO?

pip3man — Mon, 07 Jul 2014 12:11:34 GMT

@JoshNurse wrote:
So those 5 HP's ended up costing 20 points each? You started at 763 and ended at 663.

I am scared now. Can you atleast tell me which hard pull gave you more than one trade line?

You don't have to be scared if your AAOA is higher than mine I think u can handle the hit fairly well. Let me make it clear to you, I started out pre-app spree with a score of 763, AAOA of 3.5years and 1 inquiry but post app spree my final score was 728, AAOA 7months and 5 inquiries of which 4 were new HP. Now it is my current high utilization (33%) after all the new accounts has reported that further brought me down from 728 to the current 663 as of today. Do you understand it better now?? As for the HP that gave me more than one tradeline it was Macys. For one HP I got $6400, $5600, $3000 & $1000 individual credit lines.

Re: By how many points does each new card drop your FICO?

Anonymous — Mon, 07 Jul 2014 13:01:09 GMT

@pip3man wrote:
@JoshNurse wrote:
So those 5 HP's ended up costing 20 points each? You started at 763 and ended at 663.

I am scared now. Can you atleast tell me which hard pull gave you more than one trade line?
You don't have to be scared if your AAOA is higher than mine I think u can handle the hit fairly well. Let me make it clear to you, I started out pre-app spree with a score of 763, AAOA of 3.5years and 1 inquiry but post app spree my final score was 728, AAOA 7months and 5 inquiries of which 4 were new HP. Now it is my current high utilization (33%) after all the new accounts has reported that further brought me down from 728 to the current 663 as of today. Do you understand it better now?? As for the HP that gave me more than one tradeline it was Macys. For one HP I got $6400, $5600, $3000 & $1000 individual credit lines.

Also, what are your goals? If you want those credit cards, and will be happy if you get them for a while, even a major hit to the credit score can be OK (so long as it isn't enough to panic lenders). The point of a good credit score is to be able to use it to get things you want/need, and after that, it will build up again over time.

Re: By how many points does each new card drop your FICO?

destine2grow — Mon, 07 Jul 2014 13:15:43 GMT

I don't have anything to add to this thread but I am learning a lot. I knew new TL affected your CR but I didn't know it cost you points (such as CS) but it should now that I think about it!

Re: By how many points does each new card drop your FICO?

Anonymous — Mon, 07 Jul 2014 13:25:23 GMT

@destine2grow wrote:
I don't have anything to add to this thread but I am learning a lot. I knew new TL affected your CR but I didn't know it cost you points (such as CS) but it should now that I think about it!

Right, a new TL has two impacts, one usually negative, one possibly positive.

1) A new TL will reduce AAoA, UNLESS it is a backdated Amex, (which case it can increase it, decrease it or leave it unchanged) This will usually decrease score, with less impact if you have lots of lines and your AAoA is fairly high.

2) Increases overall CL. This can be positive if you are showing balances on any of your accounts

Re: By how many points does each new card drop your FICO?

takeshi74 — Mon, 07 Jul 2014 13:31:00 GMT

@JoshNurse wrote:
By how many points does each new card drop your FICO?

As other replies indicate there isn't a fixed deduction for each new reporting card. If the algorithms were that simple and direct then we would have already fully reverse engineered them. The impact will depend on one's credit as well as the account being added. It's possible for scores to go up or down.

Re: By how many points does each new card drop your FICO?

destine2grow — Mon, 07 Jul 2014 13:33:21 GMT

@Anonymous wrote:
@destine2grow wrote:
I don't have anything to add to this thread but I am learning a lot. I knew new TL affected your CR but I didn't know it cost you points (such as CS) but it should now that I think about it!
Right, a new TL has two impacts, one usually negative, one possibly positive.

1) A new TL will reduce AAoA, UNLESS it is a backdated Amex, (which case it can increase it, decrease it or leave it unchanged) This will usually decrease score, with less impact if you have lots of lines and your AAoA is fairly high.
2) Increases overall CL. This can be positive if you are showing balances on any of your accounts

Thanks LongtimeLurker this really cleared everything up! I love learning new things!

Re: By how many points does each new card drop your FICO?

dave024 — Mon, 07 Jul 2014 15:16:16 GMT

@pip3man wrote:
My bad it was 10 new tradelines I added not 11. The CC I already had accounts for the 11th. I think the points drop was more to the fact that my AAOA declined substianitially, u know going from 3yrs to barely over 6months. The annoying part of it is, out of the 4 new inquiries I ended up with on EQ ONLY one resulted in a new account and that was Discover. The remaining 3 (DCU, PENFED & WELLS FARGO) were all wasted HP smh but it's alright I could deal with them for now

Mister-endowed, I am just curious what happened with DCU? I was thinking of applying with them next month and I have similar scores as you.

Re: By how many points does each new card drop your FICO?

pip3man — Mon, 07 Jul 2014 16:06:34 GMT

@dave024 wrote:
@pip3man wrote:
My bad it was 10 new tradelines I added not 11. The CC I already had accounts for the 11th. I think the points drop was more to the fact that my AAOA declined substianitially, u know going from 3yrs to barely over 6months. The annoying part of it is, out of the 4 new inquiries I ended up with on EQ ONLY one resulted in a new account and that was Discover. The remaining 3 (DCU, PENFED & WELLS FARGO) were all wasted HP smh but it's alright I could deal with them for now
Mister-endowed, I am just curious what happened with DCU? I was thinking of applying with them next month and I have similar scores as you.

Lol in the denial letter they sent me these were the reasons in the order they were outlined - "CREDIT TOO NEW TO RATE" "EXCESSIVE NUMBER OF NEW ACCOUNTS" and "LIMITED CREDIT EXPERIENCE". Even though my EQ FICO score I got here as of then was 728, the score and date they listed on the letter was 703 as of 05/28/14. And they were like 5 or 6 new accounts already reporting when I applied to DCU plus my AAOA had dipped to 5months from a little over 3yrs. When u say we got similar scores do u mean my score post app spree which was 728 or my current score as of today which is 663?? Also remember even though we may have similar scores ur entire credit profile may be much stronger and thicker than mine but I think you'll be fine.