topic Re: 5th account reported data point in Understanding FICO® Scoring

5th account reported data point

Traveler101 — Mon, 05 Sep 2022 20:55:28 GMT

Opened several new accounts in the last 2 years. A car loan, paid off, 17 months old. A open car loan, 8 months old, personal loan 6 months old. Recently Opened 2 cc. 2 months old and last one is one month old. Trans union was sitting at 820 fico 8 before the last cc was reported. 19 point drop in fico for that 5th account in 2 years being reported.

Re: 5th account reported data point

pizzadude — Tue, 06 Sep 2022 16:19:07 GMT

@Traveler101 wrote:
Opened several new accounts in the last 2 years. A car loan, paid off, 17 months old. A open car loan, 8 months old, personal loan 6 months old. Recently Opened 2 cc. 2 months old and last one is one month old. Trans union was sitting at 820 fico 8 before the last cc was reported. 19 point drop in fico for that 5th account in 2 years being reported.

Thanks for sharing these data points. I'm guessing that your AAoA may have dropped significantly due to all of these new accounts. Do you know what your AAoA was before / after your latest new CCs were reported ?

Re: 5th account reported data point

cashorcharge — Tue, 06 Sep 2022 16:27:53 GMT

If I correct....once those loans (the open Auto and Personal) reach the 20% paid down amount from original, your scores will bounce back up. I recently had some car loan shifts and lost 11 points when the payoff was reported though didn't lose any additional for the INQ or when the new loan reported.

Re: 5th account reported data point

TheKid2 — Wed, 07 Sep 2022 12:56:35 GMT

Clean scorecards are known to have some new account "penalty". I quote penaly because it's not like a straight deduction, it's a clean scorecard segmentation which insinuates credit seeking. Specific to new revolvers, I do not think this happens with a new installment loan. You would be in that segmentation until the revolvers hit 12mos.

Beyond that you're taking hits to your overall aging metrics of your profile and Inquiries are scored for 12 mos. Inquiries not so much impact, but the AAoA is a significant factor.