topic Re: How long does your score take to go up after a new account is opened in General Credit Topics

How long does your score take to go up after a new account is opened

vinster95 — Tue, 11 Jun 2024 04:29:33 GMT

My Capital One card I just got at the end of April just reported for the first time. My FICO score went down lke 21 points, and my Vantage score went down like 11. And that's with a lower overall UTL reporting as well. How long do scores typically take to bounce back to where they were after a new account is opened?

Re: How long does your score take to go up after a new account is opened

SouthJamaica — Tue, 11 Jun 2024 04:36:09 GMT

@vinster95 wrote:
My Capital One card I just got at the end of April just reported for the first time. My FICO score went down lke 21 points, and my Vantage score went down like 11. And that's with a lower overall UTL reporting as well. How long do scores typically take to bounce back to where they were after a new account is opened?

It depends on a number of variables. When I was in heavy account acquisition mode, and my aging factors were always bad, the scores usually came back in 3 months or so.

Re: How long does your score take to go up after a new account is opened

vinster95 — Tue, 11 Jun 2024 04:41:11 GMT

Oh wow. I'm surprised it takes that long. Good to know. Thanks!

Re: How long does your score take to go up after a new account is opened

SouthJamaica — Tue, 11 Jun 2024 05:27:34 GMT

@vinster95 wrote:
Oh wow. I'm surprised it takes that long. Good to know. Thanks!

It could take much longer.

E.g., I am presently in the scorecard for those whose age of youngest account is 12 months or greater. If I were to add a new card now, in addition to losing points the ordinary way -- inquiry, lower average age of accounts, reset of age of youngest account -- I would probably lose 30 points or so, because I would be removed from that scorecard. And it would take me around a year to get the points back.

Re: How long does your score take to go up after a new account is opened

CreditPoor — Tue, 11 Jun 2024 16:13:06 GMT

I find it best to always keep one account less than 12 months old. Using this method I can add 2-3 accounts every 6 months and suffer zero point loss because I've already been dinged. Just added 3 new accounts and took zero damage and my scores remain 790's across all three bureaus. It could also be that I have a thicker file. 16 revolvers and 3 loans. Oldest account is 13 years and youngest is now 1 month with average age at about 1.7 years

Re: How long does your score take to go up after a new account is opened

Thomas_Thumb — Tue, 11 Jun 2024 18:45:19 GMT

If you have no revolving accounts less than 12 months age and then open a new account, score is typically penalized for 12 months. There may be some fade in penalty at 3 and/or 6 months but, don't count on it.

You can permanently stay in the penalty box by always having a revolver under 12 months age. Then you likely won't see a score drop opening a new account. Of course, that limits your score potential.

Re: How long does your score take to go up after a new account is opened

Baha3 — Tue, 11 Jun 2024 22:02:16 GMT

I have noticed around 2-3 months for score to bounce back up, and usually it bounces back higher than before, especially if you are increasing your overall total credit limit

Re: How long does your score take to go up after a new account is opened

FlaDude — Wed, 12 Jun 2024 13:41:16 GMT

@Baha3 wrote:
I have noticed around 2-3 months for score to bounce back up, and usually it bounces back higher than before, especially if you are increasing your overall total credit limit

Increasing your total CL does not increase your score unless you carry enough balances that it significantly lowers your total util.

Re: How long does your score take to go up after a new account is opened

FicoMike0 — Fri, 14 Jun 2024 01:04:39 GMT

I've been in the penalty box for 18+ months, but it's not intentional! I'm a sub junkie! Is there a support group?

Re: How long does your score take to go up after a new account is opened

Thomas_Thumb — Fri, 14 Jun 2024 06:42:31 GMT

@FicoMike0 wrote:
I've been in the penalty box for 18+ months, but it's not intentional! I'm a sub junkie! Is there a support group?

There was but it disbanded when the new MyFICO structure was rolled out. It was the gardening club. Now you have to get a grip solo.

Re: How long does your score take to go up after a new account is opened

Slabenstein — Fri, 14 Jun 2024 14:26:54 GMT

@Thomas_Thumb wrote:
Now you have to get a grip solo.

Re: How long does your score take to go up after a new account is opened

jrocco71 — Thu, 05 Dec 2024 18:33:43 GMT

That makes absolutely ZERO sense. ANY increase to your available credit will result in a de facto decrease in your utilization rate. Period. Sure, if all your cards always report as 0% (unused) then yeah, it won't matter but "carrying enough balances?" That's totally asinine. No one needs to carry a balance for their card to report even 1% utilization -- which is more than enough for ANY new additional credit to have a positive effect on the utilization factor of one's score calculation.

Re: How long does your score take to go up after a new account is opened

Thomas_Thumb — Thu, 05 Dec 2024 22:27:44 GMT

Utilization has banded ranges for scoring. If utilization changes but stays in the same band, no impact on score.

For example, if you have $100k in CLs with an aggregate utilization of 4%, adding $300k in CL would not increase score. Utilization levels of 4% and 1% are in the same band. However, if aggregate utilization had been 12%, adding the $300k would increase score. Dropping to 3% UT from 12% crosses a threshold into a higher rated tier.

If someone practices 1% UT reporting already, adding to CL won' t increase score. However, it can reduce the need to micro manage payments and provide added flexibility when making purchases.

For the most part I practice AZE2 - AZE3 and balances report under 9% of card CLs naturally. I don't make early payments unless a card is likely to report 29% UT or higher and/or AG UT is likely to reach 9%.

Re: How long does your score take to go up after a new account is opened

Patient957 — Thu, 05 Dec 2024 23:47:25 GMT

@Thomas_Thumb wrote:
You can permanently stay in the penalty box by always having a revolver under 12 months age. Then you likely won't see a score drop opening a new account. Of course, that limits your score potential.

But increases your SUB potential.

Re: How long does your score take to go up after a new account is opened

Realist — Thu, 26 Dec 2024 15:11:14 GMT

The more credit you acquire, the more independant from utilization you become, the more immune you become.

I actually recently acquired six hard inquiries in less than six months, declined on a handful of CC's after the fact (due to system denial), and my score actually increased to 820+. There is a perceived and anticipated formula we expect to occur, but it's not 100% factual.

I'll take everything they give me, push all limits, but I need none of it. Credit is irrelevant in this stage of my life. You make your luck in life. Push those limits.

Play the game and abuse it responsibly.