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!
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!
@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.
@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.