topic Re: Whats your typical impact for new account? in General Credit Topics

Whats your typical impact for new account?

Wrigley2172 — Mon, 12 Aug 2019 01:13:46 GMT

Evening all,
So my scores have been riding a rollar coaster the past 3 months and I had a thought. What is the typical hit "if any" you all get when your new accounts report? Me personally, my amex which i opened in May and reported in late july knocked me 30 points! Now 3 months later ive recouped about half of those points. Oh the joys of young credit. Figured this would be a good conversation we all can have

Dp's:
22- almost 23 year old college student
3 years of history
Disco 5k CL 3 years old
Amex BCP 2k CL 3 months old
AAOA: 1.8 years
Scores before amex app 790-810 fico 8
Current scores as of 8/7
Ex:779
Eq:779
Tu: 769

Re: Whats your typical impact for new account?

Anonymous — Mon, 12 Aug 2019 01:34:01 GMT

I had a small hit 3 or 4 points for my Arrival + in early June when it showed up. My AMEX just reported, but is 2 months old and I actually picked up 2 points on EQ. I haven’t seen any alerts showing it on the other 2. I’m sure there could be more that made the score go either way, but that was the most significant change.

Re: Whats your typical impact for new account?

credit_is_crack — Mon, 12 Aug 2019 02:11:49 GMT

This will vary greatly depending the profile being reviewed. What I can share is it depends on “does your profile cross a threshold when the new account posts?”

If your AAoA is taken down a tier then expect a hit. It won’t last long though. Also if you’ve gone at least 6-12 months with no new accounts and drop another one in you’ll take a hit for Age or Youngest account. You could also see it level out depending on how big the line is (the additional available credit bumps you up a tier like going from 29% to below 10%).

There are a few moving parts that really determine how much it will impact you, but as your profile thickens and more activity is the “norm”, the impact is less and less each time.

For me, when I open an account I have no impact regardless of limit (already below 9%), the age (tons of accounts 5+ years reporting and the new one only chips about a month off), or the youngest account (I can’t seem to go 6 months without a new account so I’m already carrying the maximum impact from that). If a card is good for your lineup and you have a good chance of approval, go for it. The only time it’s really mission critical is when you’re preparing to get a house. You want to avoid any new accounts for at least 6 months at the bare minimum. Other than that - shop away!

Re: Whats your typical impact for new account?

Remedios — Mon, 12 Aug 2019 05:29:53 GMT

Last four new accounts...I've lost between 3 and 0 points. I dont see much in terms of change in either direction.
Of course it's hard to penalize me for new account, as penalty is already in place.
Last year, after gardening for 13 months, I lost about 15 points for a new account.
So, it's really profile dependent for sure.

Re: Whats your typical impact for new account?

Wrigley2172 — Mon, 12 Aug 2019 07:16:52 GMT

@credit_is_crack wrote:

For me, when I open an account I have no impact regardless of limit (already below 9%), the age (tons of accounts 5+ years reporting and the new one only chips about a month off), or the youngest account (I can’t seem to go 6 months without a new account so I’m already carrying the maximum impact from that). If a card is good for your lineup and you have a good chance of approval, go for it. The only time it’s really mission critical is when you’re preparing to get a house. You want to avoid any new accounts for at least 6 months at the bare minimum. Other than that - shop away!

To be honest im suprised there are still products available to you that CAN be new accounts haha. But I appreciate all the info! Its certainly interesting to see the difference between a young file like myself and what ill call a "heavy hitter" like yourself who can probably have a new account report every month and your file just eats it up and says please sir may i have another

Re: Whats your typical impact for new account?

Wrigley2172 — Mon, 12 Aug 2019 07:20:45 GMT

@Remedios wrote:
Last four new accounts...I've lost between 3 and 0 points. I dont see much in terms of change in either direction.
Of course it's hard to penalize me for new account, as penalty is already in place.
Last year, after gardening for 13 months, I lost about 15 points for a new account.
So, it's really profile dependent for sure.

Very true, im sorry i never apped that amazon card for you remmy🙈 you were right i diiiid want it but i think the day after i made that thread the amex reported and it spooked me haha. Maybe in a month or two i can pick up something new- amazon or not😝

Re: Whats your typical impact for new account?

Anonymous — Wed, 14 Aug 2019 07:45:39 GMT

Yeah it totally depends on whether you’re resetting your AoYA or not; if so, it’s going to cost you, if not, like CiC said, how much does it affect your aggregate utilization and AAOA?

Re: Whats your typical impact for new account?

SouthJamaica — Wed, 14 Aug 2019 10:39:01 GMT

@Wrigley2172 wrote:
Evening all,
So my scores have been riding a rollar coaster the past 3 months and I had a thought. What is the typical hit "if any" you all get when your new accounts report? Me personally, my amex which i opened in May and reported in late july knocked me 30 points! Now 3 months later ive recouped about half of those points. Oh the joys of young credit. Figured this would be a good conversation we all can have

Dp's:
22- almost 23 year old college student
3 years of history
Disco 5k CL 3 years old
Amex BCP 2k CL 3 months old
AAOA: 1.8 years
Scores before amex app 790-810 fico 8
Current scores as of 8/7
Ex:779
Eq:779
Tu: 769

Typically I have no impact at all from a new account.

Re: Whats your typical impact for new account?

Anonymous — Wed, 14 Aug 2019 10:51:14 GMT

LOL, I bet you don’t SJ! Your AoYA stays reset and you’ve got so many accounts to stabilize your AAOA! 😉

Re: Whats your typical impact for new account?

SouthJamaica — Wed, 14 Aug 2019 18:05:27 GMT

@Anonymous wrote:
LOL, I bet you don’t SJ! Your AoYA stays reset and you’ve got so many accounts to stabilize your AAOA! 😉

The pot calling the kettle black.

Look at you with your trendy new Apple card.

Re: Whats your typical impact for new account?

Anonymous — Wed, 14 Aug 2019 18:17:57 GMT

@SJ 🥴😁 That’s not all that’s new my brother, take another look! And I believe I’ve got a cash plus on recon. Should I go for the Synovus?

Re: Whats your typical impact for new account?

Anonymous — Wed, 14 Aug 2019 19:04:02 GMT

But wait a minute SJ, I went a whole year. I let my AoYA reset. Like I said before, when’s last time you did that? And like you answered, never! LOL! 😉

Re: Whats your typical impact for new account?

SouthJamaica — Wed, 14 Aug 2019 18:32:41 GMT

@Anonymous wrote:
But wait a minute SJ, I went a whole year I let my AoYA reset. Like I said before, when’s last time you do that? And like you answered, never! LOL! 😉

Yes but look at you now, you're on a spree. You're drinking the MyFICO Forum Kool-Aid.

Re: Whats your typical impact for new account?

Anonymous — Wed, 14 Aug 2019 19:04:52 GMT

Guilty as charged. But if I only get to drink it once a year, I may as will make it count right?😉😁