topic Re: Credit Score Dropped 23 Points When New Account Reported Today in Understanding FICO® Scoring

Credit Score Dropped 23 Points When New Account Reported Today

wildboys — Mon, 28 Jun 2021 03:25:15 GMT

My Equifax Fico 8 score dropped 23 points today when a new account I open last month reported today.

Is this because the age of my credit decreased? I have 5 revolvers that I am the primary holder, and one AU account

that is 19 years old. I also have 1installment loan that is 94% paid off. I got my first revolver in November of 2020.It looks like myFICO does not factor in my AU account age in the average of my accounts. Is this just a temporary hit for now? Thanks.

Re: Credit Score Dropped 23 Points When New Account Reported Today

simplynoir — Mon, 28 Jun 2021 03:29:06 GMT

The point drop you experienced can be attributed to the new account reporting as you thought. It is temporary though as the account ages and your credit profile passes various thresholds for aging. It'll be touchy for awhile especially since you're saying your first card was back in November 2020 so your profile is quite young. Let your cards age and you should see your score recover

Re: Credit Score Dropped 23 Points When New Account Reported Today

SouthJamaica — Mon, 28 Jun 2021 03:30:27 GMT

@wildboys wrote:
My Equifax Fico 8 score dropped 23 points today when a new account I open last month reported today.
Is this because the age of my credit decreased? I have 5 revolvers that I am the primary holder, and one AU account
that is 19 years old. I also have 1installment loan that is 94% paid off. I got my first revolver in November of 2020.It looks like myFICO does not factor in my AU account age in the average of my accounts. Is this just a temporary hit for now? Thanks.

Yes it's a temporary hit. You have been adding a lot of new credit in a short period of time. You should make no applications for awhile, preferably for a year.

It's probably attributable to resetting age of newest account, lowering average age of accounts, and possibly the inquiry.

Re: Credit Score Dropped 23 Points When New Account Reported Today

Anonymous — Tue, 29 Jun 2021 18:57:15 GMT

It's temporary but that's still a large drop. The problem is scores drop fast but it takes awhile for them to go back up. 🙄

Re: Credit Score Dropped 23 Points When New Account Reported Today

kilroy8 — Tue, 29 Jun 2021 19:00:25 GMT

This is in line with what I saw on a clean, thick, aged profile. The points trickle back in over the next year.

Re: Credit Score Dropped 23 Points When New Account Reported Today

Anonymous — Fri, 02 Jul 2021 04:01:06 GMT

Your score will recover in 3-6 months mostly, probably all the way by 12 months.