@Tdatb64 wrote:
@FicoMike0 wrote:
That's a big hit for one new account and hp. What kind of score is it and where did you get it? Is it a creditwise vs3? Still, I've never seen that kind of hit to fico or vantage from a new account. What does the rest of your report look like?
I just checked my vantage score. I usually lose 15 points for a new account, recovers in two months.
On a very thin file that's not an unusual hit.
I've seen the "It gets worse before it gets better." thing on a thin file before. 5 years ago when my spouse was applying for a green card (he's now a US citizen as of last month), he had no credit cards, so I suggested a Walmart Capital One. When it appeared, it did like 28 points damage to a file where the only other thing was an AU AmEx that his sister gave him for a while, but by 2 months later, the damage was gone and the score was higher and higher after that.
I don't like to play the "high FICO nonsense" game, but apparently the USCIS does. While they were evaluating his N-400 citizenship application, they soft pulled his Experian credit report. It said "United States Citizenship" and there was an address of a federal building in Washington, D.C., so I'm glad that I was able to help him build up his credit report and fend off those collection agency parasites that defamed him with medical bills that were never presented to the insurance company -or- us. (I'm still angry about that because I had to bring the Attorney General of Illinois into it before they took it seriously and sent them back to the original creditor, LabCorp.)
Many people have no need to really watch the daily ups and downs of their credit report, but for others, there's a nice big fat 5 year stretch where something that matters can unfortunately pull it at any minute.
When they pulled it, his FICO 8 was 788 which was primarily from me using Authorized User cards to pay our bills and pay it back.
(I call it the "high FICO nonsense" game because like, stupid landlords that don't want to rent to you for three years after a bankruptcy but will happily take on tenants that are $50,000 in credit card debt but manage to keep a 625+ credit score because they're still making interest payments. It incentivizes making decisions where you're more likely to get stuck with a problem tenant later on and you'll prioritize people like this who will file bankruptcy later (because of the cards) and make you spend a year and a half trying to dig them out of your apartment and they won't owe you anything when you manage to, and you can't call it an eviction, and you'll even eat your court costs and attorney bill. No this is not theoretical. One of my exes did this. They spent 14 months trying to get him out, they never got anything, and they couldn't even give him a bad reference. That was aside from the bank trying to get their car back for nearly two years. But he had a good credit score when they first saw him, so yay credit scores.)
A credit score is based on underlying factors, but the factors themselves matter much more than the score. People who look at scores and ignore factors do so at their own risk. It doesn't take a genius to realize that people with lots of debt are more unstable than people with a lower FICO score but no debt compared with similar income. Even many banks are starting to figure this out.
