Experian and Equifax don't like new accounts?

[Anonymous]

Once my AMEX BCE hit my credit report My FICO scores took a 14pt hit from Experian and a 26pt hit from Equifax. Transunion score remained the same. I guess Equifax and Experian don't take kindly to new accounts. 

The only thing that has changed is my AAoA. It went from 4yr 6mo to 3yr 4mo (rounding up because the new TL didnt even hit a month old yet but reported on statement cut). My UTIL went down from 6.7% to 6.3% with no baddies. Isn't a 26 point ( [26 / (850 max score - 300 min score) ]= 4.7% hit) and 14 point ( [14/550] = 3.1% hit) a bit much for a new tradeline? Does this sound about right?

[Anonymous]

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@Anonymous wrote:

Once my AMEX BCE hit my credit report My FICO scores took a 14pt hit from Experian and a 26pt hit from Equifax. Transunion score remained the same. I guess Equifax and Experian don't take kindly to new accounts. 

The only thing that has changed is my AAoA. It went from 4yr 6mo to 3yr 4mo (rounding up because the new TL didnt even hit a month old yet but reported on statement cut). My UTIL went down from 6.7% to 6.3% with no baddies. Isn't a 26 point ( [26 / (850 max score - 300 min score) ]= 4.7% hit) and 14 point ( [14/550] = 3.1% hit) a bit much for a new tradeline? Does this sound about right?

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Could have been a case of rebucketing.

[Anonymous]

Isn't the algorithm for a given type of score the same across all CRAs?  So a FICO 08 bankscore or whatever is calculated using exactly the same method, the different results coming from the different data each CRA has?

[ojefferyo]

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@Anonymous wrote:

Once my AMEX BCE hit my credit report My FICO scores took a 14pt hit from Experian and a 26pt hit from Equifax. Transunion score remained the same. I guess Equifax and Experian don't take kindly to new accounts. 

The only thing that has changed is my AAoA. It went from 4yr 6mo to 3yr 4mo (rounding up because the new TL didnt even hit a month old yet but reported on statement cut). My UTIL went down from 6.7% to 6.3% with no baddies. Isn't a 26 point ( [26 / (850 max score - 300 min score) ]= 4.7% hit) and 14 point ( [14/550] = 3.1% hit) a bit much for a new tradeline? Does this sound about right?

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Mine actually went up on those two when Barclay reported the Arrival card, we'll see when the other 4 new cards reports.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Once my AMEX BCE hit my credit report My FICO scores took a 14pt hit from Experian and a 26pt hit from Equifax. Transunion score remained the same. I guess Equifax and Experian don't take kindly to new accounts. 

The only thing that has changed is my AAoA. It went from 4yr 6mo to 3yr 4mo (rounding up because the new TL didnt even hit a month old yet but reported on statement cut). My UTIL went down from 6.7% to 6.3% with no baddies. Isn't a 26 point ( [26 / (850 max score - 300 min score) ]= 4.7% hit) and 14 point ( [14/550] = 3.1% hit) a bit much for a new tradeline? Does this sound about right?

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Could have been a case of rebucketing.

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is rebucketing, more or less, confirmed as part of the scoring models amongst the credit bureaus? 

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@Anonymous wrote:

Isn't the algorithm for a given type of score the same across all CRAs?  So a FICO 08 bankscore or whatever is calculated using exactly the same method, the different results coming from the different data each CRA has?

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 I'm not sure what you mean

[Anonymous]

I just got a 7 point jump from adding a NFCU account on Experian.  Lots of factors involved.

[Anonymous]

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@Anonymous wrote:

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@Anonymous wrote:

Isn't the algorithm for a given type of score the same across all CRAs?  So a FICO 08 bankscore or whatever is calculated using exactly the same method, the different results coming from the different data each CRA has?

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 I'm not sure what you mean

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I am just questioning the assumption behind the subject line, that the CRA likes or dislikes some factor.  My understanding is that a particular type of score, such as standard FICO 08, is calculated using exactly the same method for all bureaus (the score type determines what factors are counted and how they are weighted).  An EX score differs from an EQ score (say) because they have different DATA, not because the calculation is different.

[lhcole77]

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@Anonymous wrote:

Once my AMEX BCE hit my credit report My FICO scores took a 14pt hit from Experian and a 26pt hit from Equifax. Transunion score remained the same. I guess Equifax and Experian don't take kindly to new accounts. 

The only thing that has changed is my AAoA. It went from 4yr 6mo to 3yr 4mo (rounding up because the new TL didnt even hit a month old yet but reported on statement cut). My UTIL went down from 6.7% to 6.3% with no baddies. Isn't a 26 point ( [26 / (850 max score - 300 min score) ]= 4.7% hit) and 14 point ( [14/550] = 3.1% hit) a bit much for a new tradeline? Does this sound about right?

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Just an FYI:

AAoA is rounded down for FICO scoring. Technically you went from AAoA of 4 years down to 3 years.

And UTL tends to be rounded up. So going from 6.7 to 6.3% means that you either went from 7% to 7% (no change) or possibly 7% to 6%, which IMO is too minute to see a positive effect.

I would estimate that the "Amount of New Credit" portion of your report took a hit. Scoring from this section looks at INQs as well as new accounts and scores can get dinged for new accounts reporting < 6 mos and/or 1 year.

[lhcole77]

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@Anonymous wrote:

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I am just questioning the assumption behind the subject line, that the CRA likes or dislikes some factor.  My understanding is that a particular type of score, such as standard FICO 08, is calculated using exactly the same method for all bureaus (the score type determines what factors are counted and how they are weighted).  An EX score differs from an EQ score (say) because they have different DATA, not because the calculation is different.

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I've thought about this before too.

Do you think it's possible to be in different buckets across the different scores? Like, perhaps something on the TU report has the OP in one bucket that doesn't affect score the same way because on EQ and EX OP is in a different bucket....

[Anonymous]

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@lhcole77 wrote:

Just an FYI:

AAoA is rounded down for FICO scoring. Technically you went from AAoA of 4 years down to 3 years.

And UTL tends to be rounded up. So going from 6.7 to 6.3% means that you either went from 7% to 7% (no change) or possibly 7% to 6%, which IMO is too minute to see a positive effect.

I would estimate that the "Amount of New Credit" portion of your report took a hit. Scoring from this section looks at INQs as well as new accounts and scores can get dinged for new accounts reporting < 6 mos and/or 1 year.

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Thanks for pointing out that rounding issue it is good to know for future reference. Is the AAoA always rounded down? That's weird because my Equifax specifically reports my "Average Age Account"  in years and months. You reminded me that I have overlooked the "Amont of New Credit" portion and in retrospect maybe the hit is somewhat more justified, idk.