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Credit Score dropped over 20 points due to 2 inquires in less than 2 months?

eyeseeyou
New Member

Credit Score dropped over 20 points due to 2 inquires in less than 2 months?

I ahven't had any late payments and very little debt within the last 2 months.

 

I've applied for an amazon CC and opened a Wells Fargo account within the last 2 months. 

 

Based on freecreditscore.com I went from 774 to 750.

 

Can inquires really drop my score down that quick?

Message 1 of 9
8 REPLIES 8
Involver
Valued Contributor

Re: Credit Score dropped over 20 points due to 2 inquires in less than 2 months?

Were you approved for both accounts?

 

If you were, your AAoA dropped, which may have rebucketed you.

 

You wouldn't lose 20 points for 2 INQs.

Message 2 of 9
eyeseeyou
New Member

Re: Credit Score dropped over 20 points due to 2 inquires in less than 2 months?

I was indeed approved for both accounts.

 

Googling "AAoA" and "rebucketed"

Message 3 of 9
Dinosaur
Moderator Emeritus

Re: Credit Score dropped over 20 points due to 2 inquires in less than 2 months?

Seems you received good advice. FICO can be an elusive catch. Hang in their as some of your scores may come back in a couple of months.
Message 4 of 9
Involver
Valued Contributor

Re: Credit Score dropped over 20 points due to 2 inquires in less than 2 months?


@eyeseeyou wrote:

I was indeed approved for both accounts.

 

Googling "AAoA" and "rebucketed"


 

Your average age of accounts "AAoA" decreased due to your newly opened accounts.  There are particular age thresholds that put you in particular scoring "buckets" that ultimately have a determination on how high / low you score can end up.  I know that 2 and 5 years for average age are specific milestones, for example.  What likely happened is that you fell below a particular number so that your scoring algorithm is compared against a different cohort of people, and as such your score took a hit for it.  Ultimately it's nothing to be worried about and your score should rebound shortly.

Message 5 of 9
lhcole77
Valued Contributor

Re: Credit Score dropped over 20 points due to 2 inquires in less than 2 months?


@eyeseeyou wrote:

I ahven't had any late payments and very little debt within the last 2 months.

 

I've applied for an amazon CC and opened a Wells Fargo account within the last 2 months. 

 

Based on freecreditscore.com I went from 774 to 750.

 

Can inquires really drop my score down that quick?e


Be mindful, though, that this is a FAKO score and does not necessarily reflect what may have happened to your actual FICO score.
Message 6 of 9
taxi818
Super Contributor

Re: Credit Score dropped over 20 points due to 2 inquires in less than 2 months?


@lhcole77 wrote:

@eyeseeyou wrote:

I ahven't had any late payments and very little debt within the last 2 months.

 

I've applied for an amazon CC and opened a Wells Fargo account within the last 2 months. 

 

Based on freecreditscore.com I went from 774 to 750.

 

Can inquires really drop my score down that quick?e


Be mindful, though, that this is a FAKO score and does not necessarily reflect what may have happened to your actual FICO score.

Thanks  you took words out of mouth. that score and go up or down. without any changes. so its useless. blows me away people never pay attention to scores they are talking about. i guess with so many fakos as well as ficos it is confusing for the novice.

only pay attention to your fico scores. any thing else is useless score wise. but maybe they can tell you how your score is trending . up or down.

Message 7 of 9
eyeseeyou
New Member

Re: Credit Score dropped over 20 points due to 2 inquires in less than 2 months?

Thanks for the heads up about the fako scores.

Kind of deflates my credit score ego but good news I'm still at a "low risk" score.
Message 8 of 9
takeshi74
Senior Contributor

Re: Credit Score dropped over 20 points due to 2 inquires in less than 2 months?


@Involver wrote:

Were you approved for both accounts?

 

If you were, your AAoA dropped, which may have rebucketed you.

 


^ This.  Consider all impact.  Some seem to fixate on HP's and tend to overlook everything else for some reason.  See also:

http://www.myfico.com/crediteducation/whatsinyourscore.aspx

 


@taxi818 wrote:
only pay attention to your fico scores. any thing else is useless score wise.

Even with FICO's one needs to be mindful of the different models in use.  Relying on a FICO model that a creditor you're applying to doesn't use is also useless.  Regardless of FAKO or FICO you can't rely on one scoring model to determine a score generated by an entirely different model.  Personally, I find paying attention to report data more useful than monitoring numbers.

Message 9 of 9
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