topic Re: Understanding Your Score - Equifax in Understanding FICO® Scoring

Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 14:14:51 GMT

Below is a paste from my Equifax Complete credit report. Has anyone else had this as a reason for hurting your score? If so, can we assume that after a year from opening the new credit accounts this reason would be removed? Or does anybody know what % it takes to have this reason removed and a score increase? As you can see my newly opened credit accounts to all credit accounts is 90% in the last 12 months. Just curious if 30%, 40%, 50%, etc, would be enough to take a jump in score.

You have a high percentage of recently opened accounts.

Your credit report shows that your percentage of recently opened accounts as compared to all of your credit accounts is too high. People who have opened multiple credit accounts within a short period of time are seen as higher risk by lenders. Your credit score was hurt by these recently opened accounts. Be sure to apply for and open new accounts only as needed.

Your percentage of credit accounts that have been opened in the last 12 months: 90%

Equifax 760+ Club

About 76% of Equifax 760+ Club members have opened less than 7% of their credit accounts within the last 12 months.

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 14:36:24 GMT

@Anonymous wrote:
Below is a paste from my Equifax Complete credit report. Has anyone else had this as a reason for hurting your score? If so, can we assume that after a year from opening the new credit accounts this reason would be removed? Or does anybody know what % it takes to have this reason removed and a score increase? As you can see my newly opened credit accounts to all credit accounts is 90% in the last 12 months. Just curious if 30%, 40%, 50%, etc, would be enough to take a jump in score.

You have a high percentage of recently opened accounts.
Your credit report shows that your percentage of recently opened accounts as compared to all of your credit accounts is too high. People who have opened multiple credit accounts within a short period of time are seen as higher risk by lenders. Your credit score was hurt by these recently opened accounts. Be sure to apply for and open new accounts only as needed.

Your percentage of credit accounts that have been opened in the last 12 months: 90%
Equifax 760+ Club
About 76% of Equifax 760+ Club members have opened less than 7% of their credit accounts within the last 12 months.

uh oh, I have opened all of my credit in the past year and 65% of it in the last month. hopefully when I get my free EQ from DCU next month my score doesn't take a big hit from this.

Re: Understanding Your Score - Equifax

BrokaToe — Sun, 31 Mar 2013 14:47:19 GMT

Most definitely new accounts will bring your score down as they report. Sometimes if you're new to credit adding 1 or 2 cards can cause an increase in score, but after the first couple of cards then new accounts may cause a decrease.

This is only a temporary drop however, usually within 3 months or so your score will begin to climb back up.

But I have noticed that by adding a new trade line with a sizeable limit can actually increase your score when it first reports, of course this will all depend on current utilization.

Re: Understanding Your Score - Equifax

tcbofade — Sun, 31 Mar 2013 15:11:26 GMT

Hmmm. I didn't know that either.

Right now, I've got 32 "active" credit accounts...six of them opened in the last 12 months. The last one was in August of 12.

I wonder if this will help my EQ score come August...

Re: Understanding Your Score - Equifax

BrokaToe — Sun, 31 Mar 2013 15:27:11 GMT

@tcbofade wrote:
Hmmm. I didn't know that either.

Right now, I've got 32 "active" credit accounts...six of them opened in the last 12 months. The last one was in August of 12.

I wonder if this will help my EQ score come August...

interesting thought tcbofade. That would definitely be something to keep an eye out for. If you see a small jump in August and nothing else has changed, then that could be the reason. If you don't mind me asking, are all 32 of those accounts credit cards?

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 18:37:38 GMT

32! that can't possibly be 32 credit cards is it?

Re: Understanding Your Score - Equifax

LS2982 — Sun, 31 Mar 2013 18:43:42 GMT

@Anonymous wrote:
Below is a paste from my Equifax Complete credit report. Has anyone else had this as a reason for hurting your score? If so, can we assume that after a year from opening the new credit accounts this reason would be removed? Or does anybody know what % it takes to have this reason removed and a score increase? As you can see my newly opened credit accounts to all credit accounts is 90% in the last 12 months. Just curious if 30%, 40%, 50%, etc, would be enough to take a jump in score.

You have a high percentage of recently opened accounts.
Your credit report shows that your percentage of recently opened accounts as compared to all of your credit accounts is too high. People who have opened multiple credit accounts within a short period of time are seen as higher risk by lenders. Your credit score was hurt by these recently opened accounts. Be sure to apply for and open new accounts only as needed.

Your percentage of credit accounts that have been opened in the last 12 months: 90%
Equifax 760+ Club
About 76% of Equifax 760+ Club members have opened less than 7% of their credit accounts within the last 12 months.

They are comparing your olest account to all of your other accounts.

Re: Understanding Your Score - Equifax

webhopper — Sun, 31 Mar 2013 18:48:19 GMT

Yes; your score takes a hit for opening a lot of new accounts... that's why its important to make sure you really will use the card long term when you apply for it... otherwise you're just shooting yourself in the foot.

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 19:03:45 GMT

Yes, I knew opening the accounts would reduce my AAoA and I would take a big drop in my scores. What I am trying to determine is what percentage EQ is needing to remove the negative indicator as a reason for a score drop. Just exactly what percentage can you open in a year and not have that used as a reason for hurting your score, according to EQ?

As you see I am at 90% of all my credit accounts opened in the last 12 months. But what if I only had 60% or 30% opened in the last year, would that be a negative as well? Figured someone that subscribed to one of the EQ packages would have some info and perhaps noticedthis under their report. Curious to if someone who did open a lot of accounts had a % number on their account I could use for a reference.

If someone had the same 'hurting my score' comment as me, but yet they had 50% opened in the last year compared to all credit accounts, then I would have a better idea of what or how many of my cards needs to be a year old to make a difference according to EQ.

Re: Understanding Your Score - Equifax

LS2982 — Sun, 31 Mar 2013 19:05:58 GMT

@Anonymous wrote:
Yes, I knew opening the accounts would reduce my AAoA and I would take a big drop in my scores. What I am trying to determine is what percentage EQ is needing to remove the negative indicator as a reason for a score drop. Just exactly what percentage can you open in a year and not have that used as a reason for hurting your score, according to EQ?

As you see I am at 90% of all my credit accounts opened in the last 12 months. But what if I only had 60% or 30% opened in the last year, would that be a negative as well? Figured someone that subscribed to one of the EQ packages would have some info and perhaps noticedthis under their report. Curious to if someone who did open a lot of accounts had a % number on their account I could use for a reference.

If someone had the same 'hurting my score' comment as me, but yet they had 50% opened in the last year compared to all credit accounts, then I would have a better idea of what or how many of my cards needs to be a year old to make a difference according to EQ.

I would think 30% and lower would resolve that factor.

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 19:17:21 GMT

@Anonymous wrote:
Yes, I knew opening the accounts would reduce my AAoA and I would take a big drop in my scores. What I am trying to determine is what percentage EQ is needing to remove the negative indicator as a reason for a score drop. Just exactly what percentage can you open in a year and not have that used as a reason for hurting your score, according to EQ?

As you see I am at 90% of all my credit accounts opened in the last 12 months. But what if I only had 60% or 30% opened in the last year, would that be a negative as well? Figured someone that subscribed to one of the EQ packages would have some info and perhaps noticedthis under their report. Curious to if someone who did open a lot of accounts had a % number on their account I could use for a reference.

If someone had the same 'hurting my score' comment as me, but yet they had 50% opened in the last year compared to all credit accounts, then I would have a better idea of what or how many of my cards needs to be a year old to make a difference according to EQ.

Not quite sure what you mean here. AFAIK, the EQ "reason" is just a summary, you are not losing extra points because of this reason. Your score is down because of the new accounts (some mixture of Inqs if they are on this report, and reduction in AAoA). Obviously, with a smaller number/percentage the impact would be less, and indeed this reason might then not appear in the top N, but the reason itself has no impact.

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 19:18:00 GMT

Alright. I have a few cards in May that will be a year old. Hoping to get a slight score increase. Another question, if an account was opened May 9th, 2012, just exactly how would lenders or the bureaus determine a year mark? May 9th, June 1st, or the next statement cycle (June 9th). I'm getting close to a year mark on some accounts and want to get a better idea of when things may fall into place for the better.

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 19:33:35 GMT

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 19:37:35 GMT

@Anonymous wrote:

So notice that although you get dinged for not having information about a mortgage, they say that the same applies to 82% of the best scorers!

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 19:49:32 GMT

I have 9 open accounts and 5 of them were opened in the past 12 months with 4 of those opened in the last 5 months. So right now I am at 55% but it will be 44% in July.

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 19:56:58 GMT

Typo. 10 open accounts, not 9. So I am currently at 50% and will be at 40% in July. So now I'm wondering if I should stay in the garden until December as it will be at 30% by then. Hmmmm....

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 19:58:27 GMT

Do you subscibe to any of the EQ products? If so, do you see what I see? I wonder if your 50% throws a flag up on EQ like mine does at 90%.

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 20:07:39 GMT

The only EQ I subscribe to is the one from myfico. I subscribe to an EX service but it didn't have that category as a negative. Instead it talks about inquiries, average credit limit, and my number of installment loans as being negatives. Not having a mortgage used to be a negative, now it says my mortgage is in good standing as a positive. My EX score is the lowest.

Re: Understanding Your Score - Equifax

Anonymous — Sun, 31 Mar 2013 21:31:56 GMT

i have Equifax's service as well but my new accounts hasn't reported yet. I was at 766 (FAKO) and 1 discover inquiry brought me down to 756 (FAKO as well). I am probably going to be 650-720 region once my new accounts report

Re: Understanding Your Score - Equifax

tcbofade — Mon, 01 Apr 2013 01:54:17 GMT

@BrokaToe wrote:
@tcbofade wrote:
Hmmm. I didn't know that either.

Right now, I've got 32 "active" credit accounts...six of them opened in the last 12 months. The last one was in August of 12.

I wonder if this will help my EQ score come August...
interesting thought tcbofade. That would definitely be something to keep an eye out for. If you see a small jump in August and nothing else has changed, then that could be the reason. If you don't mind me asking, are all 32 of those accounts credit cards?

Oh heavens no...

(only 29 of them are...)