topic Re: Think I just got rebucketed in Understanding FICO® Scoring

Think I just got rebucketed

joltdude — Mon, 25 Apr 2016 15:48:08 GMT

Added a Chase account recently... even with just purchasing enough to hit the spend on the chase... My score dropped from 749 t(pre Chase App) to 729. (today). (The Fico from LC) Have to change my siggy again....=/

Util wasnt affected...(it actually dropped some)

The account is already reporting...

Thought the 5400 CL would actually up my score.... due to utilization

What the heck happened?

-J

Re: Think I just got rebucketed

kjm79 — Mon, 25 Apr 2016 16:13:08 GMT

What did the new account do to your AAoA?

Re: Think I just got rebucketed

Revelate — Mon, 25 Apr 2016 16:33:21 GMT

No, something else changed. Neither AAOA nor utilization are bucketable.

Are you sure you're comparing the same score versions in this case? I didn't recognize the LC moniker?

Re: Think I just got rebucketed

joltdude — Mon, 25 Apr 2016 23:07:59 GMT

Lending Club uses a real Fico score...

AAoA did change.. I only had the CU card for two years when i apped for the Chase..

Still not sure what I did wrong.. No AA, no escalating debt, no lates...

Will it go back up slightly in a month or so after the first payment for chase posts?

Re: Think I just got rebucketed

Anonymous — Tue, 26 Apr 2016 01:29:00 GMT

Your only other card is the CU card? Are there any other accounts reporting? This may simply be the normal Fico reaction to adding another account to a thin file. Thin files tend to be far more volatile than older, thicker files.

Re: Think I just got rebucketed

Thomas_Thumb — Tue, 26 Apr 2016 01:41:02 GMT

@joltdude wrote:
Added a Chase account recently... even with just purchasing enough to hit the spend on the chase... My score dropped from 749 t(pre Chase App) to 729. (today). (The Fico from LC) Have to change my siggy again....=/

Util wasnt affected...(it actually dropped some)
The account is already reporting...
Thought the 5400 CL would actually up my score.... due to utilization

What the heck happened?

-J

Thin file new account reporting syndrome - IMO. I expect you will see a bounce back within 90 days

Re: Think I just got rebucketed

joltdude — Tue, 26 Apr 2016 15:53:24 GMT

Theres actually a secured share loan reporting but thats been on there since last year

-J

Re: Think I just got rebucketed

Anonymous — Tue, 26 Apr 2016 16:05:57 GMT

@joltdude wrote:
Theres actually a secured share loan reporting but thats been on there since last year
-J

If you juat had this account and the one credit card before, than this is a normal drop and your score will climb back up.

Re: Think I just got rebucketed

joltdude — Tue, 26 Apr 2016 16:18:57 GMT

Im thinking it probably was a good idea I didnt partake in an app spree.....

Re: Think I just got rebucketed

Anonymous — Tue, 26 Apr 2016 23:48:59 GMT

+1 to what everyone else said.
Thin files should never app spree, correct.
However I don't think 2 should be considered a spree and would help thicken your file and aaoa. Not saying you def should app for anther card, but if your can but that bonus easy enough, maybe do go get anther card.

Re: Think I just got rebucketed

joltdude — Wed, 27 Apr 2016 03:17:03 GMT

As someone in another forum said.. Midas well wait for the rebound... plus it will give me a bit of time to drop the util a bit... Thinking Jun/Jul might go for the Disco... after the pulls fall off from from their denial 2 years ago =/ =/

Re: Think I just got rebucketed

Revelate — Wed, 27 Apr 2016 16:20:56 GMT

@Anonymous wrote:
+1 to what everyone else said.
Thin files should never app spree, correct.
However I don't think 2 should be considered a spree and would help thicken your file and aaoa. Not saying you def should app for anther card, but if your can but that bonus easy enough, maybe do go get anther card.

Actually, everyone should app spree mathetmatically when just talking algorithm implementation: thin files especially or when initially building. My sprees have never been more than 4-5 accounts at a time FWIW, and not all of them CC's.

Short term damage doesn't matter, long term is where it's at. If you're a thin file, and you can qualify for some accounts to thicken it up, do so, like now... unless you have a mortgage coming up in within the next year, that requires more planning. I suppose another maybe caveat is if you're on a thin file with an AAOA of 5ish years, maybe: have to rip the bandaid off sometime, and might as well set yourself up now for the rest of your life rather than waiting.

Re: Think I just got rebucketed

Anonymous — Wed, 27 Apr 2016 18:35:09 GMT

I'm totally all about thickening up a file asap and tracking the aaoa hit now rather than later. I was just more referring to opening the wrong cards with lower scores ala sct and/or banks doing fr. Idk how likely the second one is, just know its possible

Re: Think I just got rebucketed

Revelate — Wed, 27 Apr 2016 23:37:08 GMT

@Anonymous wrote:
I'm totally all about thickening up a file asap and tracking the aaoa hit now rather than later. I was just more referring to opening the wrong cards with lower scores ala sct and/or banks doing fr. Idk how likely the second one is, just know its possible

AA is not likely at all, and nobody has ever blinked at my sprees of 4-5 accounts.

The risk is overrated and overblown, just some people push things to the edge and open up like 13 accounts at a time, unnecessary and illadvised really as they're going to be junk tradelines statistically.

Re: Think I just got rebucketed

joltdude — Thu, 28 Apr 2016 00:28:46 GMT

I did the low and slow thing.... Still believe its what got me a good limit and apr even on a Chase card... That said my idea of an app spree (for my thinnish CR) would have been 2-3 apps... Not 4 or more... Trying to learn from some folks missteps...(Avoiding store cards and not apping for a dozen low limit cards) The going for quality/prime accounts vs quantity thing. But I keep looking at the AAoA issue...I don't quite figure out how AAoA is calculated and if im better off taking a few hits at once and letting them age together, vs waiting for a more ideal offer... (putting uti into a optimal number and only having one card with a balance reporting)...

Re: Think I just got rebucketed

Anonymous — Thu, 28 Apr 2016 05:10:36 GMT

Aaoa is Math. All the months since each account opened. All. Including closed. Divided by how many accounts.

Open two accounts today, wait one year, aaoa of 1 year.
Open one account today, then one in six months, that's 12+6=18. 18 months divided by 2 accounts, aaoa of 9 months. Higher aaoa is always better.

This is entirely separate from the inquiries aging, first scenario April of '17 the inquiries aren't affecting your score. In the second one you still have 1 affecting your score for anther six months.

Less inquiries and higher aaoa is Inarguably better than the opposite. Period.

If aa isn't likely at all , let it roll. Inquiries fall off. The effect lessens. If you end up not getting approved today you probably weren't getting approved in 2-4 months anyway, which by then the inquiry you took has already started to lessen.

Re: Think I just got rebucketed

Anonymous — Thu, 28 Apr 2016 05:18:15 GMT

Went back and read the thread one more time, if you have nothing coming up like a mortgage or car loan in the next few months(about 1-4). Let it rip and go get new accounts. Find some cards that fit your usage and spend and go get em.

If after the approvals start reporting your score pops up at 690 or so, don't worry. That's fine. It's gonna rebound in just a few months and future you will be happy those cards are working for you and your aaoa now rather than later.

Fwiw, Chase UR is awesome. I love my BCP. My Discover is my highest limit by 6.5k, and about 10k from my 3rd highest.

Re: Think I just got rebucketed

Revelate — Thu, 28 Apr 2016 15:00:56 GMT

@Anonymous wrote:
Went back and read the thread one more time, if you have nothing coming up like a mortgage or car loan in the next few months(about 1-4). Let it rip and go get new accounts. Find some cards that fit your usage and spend and go get em.

If after the approvals start reporting your score pops up at 690 or so, don't worry. That's fine. It's gonna rebound in just a few months and future you will be happy those cards are working for you and your aaoa now rather than later.

Fwiw, Chase UR is awesome. I love my BCP. My Discover is my highest limit by 6.5k, and about 10k from my 3rd highest.

There is no aging of inquiries until they fall out of scoring range; if you need a mortgage anytime in the next year minimizing inquiry count within the last year is absolutely essential if you're playing in the middle tiers (which a lot of people are). The difference between 2 and 3 inquiries on Equifax for me was 7 points playing in the 680-720 range... that's 1/3 of a tier, absolutely important.

Auto loan meh, worst case just refi in six months.

Beyond that, your analysis is fundamentally what underpins the spree methodolgy and the more general use case if you have to take any sort of negative in the FICO algorithm, do it today and get it aging immediately. At all times beyond that your score will be bettter than had you waited to pull the trigger: actually it's a 1:1 slip with how the algorithm is implemented by waiting.

Re: Think I just got rebucketed

joltdude — Thu, 28 Apr 2016 16:50:55 GMT

Nope no mortgage coming up... Looks like im card shopping for one more card... At least for now..

-J

Re: Think I just got rebucketed

grillandwinemaster — Sun, 01 May 2016 20:13:59 GMT

@joltdude wrote:
Nope no mortgage coming up... Looks like im card shopping for one more card... At least for now..

-J

Yes, one more card will put you at 3, if I read your post/signature correctly. It's been speculated that 3 cc's is optimal for Fico scoring. Kudos for keeping things simple!