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Whats your typical impact for new account?

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Regular Contributor

Whats your typical impact for new account?

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

Discover it: 8700
Amex BCP: 3600
22k student loan
Ficos 8's ~770
Inq: EX:2 EQ:1 TU:1
Message 1 of 14
13 REPLIES 13
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Regular Contributor

Re: Whats your typical impact for new account?

I had a small hit 3 or 4 points for my Arrival + in early June when it showed up. My AMEX just reported, but is 2 months old and I actually picked up 2 points on EQ. I haven’t seen any alerts showing it on the other 2. I’m sure there could be more that made the score go either way, but that was the most significant change.
Rebuilding Since 2016
6/5/2019 - Fico 8 Scores - EQ 672 TU 683 EX 674
6/15/2019 - FICO 8 Scores - EQ 682 TU 698 EX 690
8/10/2019 - FICO 8 Scores - EQ 706 TU 705 EQ 689
9/15/2019 - FICO 8 Scores - EQ 710 TU 713 EX 690
6/6/2020 - FICO 8 Scores EQ 717 TU 720 EX 683
Message 2 of 14
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Valued Contributor

Re: Whats your typical impact for new account?

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!
Message 3 of 14
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Moderator

Re: Whats your typical impact for new account?

Last four new accounts...I've lost between 3 and 0 points. I dont see much in terms of change in either direction.
Of course it's hard to penalize me for new account, as penalty is already in place.
Last year, after gardening for 13 months, I lost about 15 points for a new account.
So, it's really profile dependent for sure.
I told my teens yesterday I'm done repeating myself. Darwin, take the wheel, please.
Message 4 of 14
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Regular Contributor

Re: Whats your typical impact for new account?


@credit_is_crack wrote:

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!

To be honest im suprised there are still products available to you that CAN be new accounts haha. But I appreciate all the info! Its certainly interesting to see the difference between a young file like myself and what ill call a "heavy hitter" like yourself who can probably have a new account report every month and your file just eats it up and says please sir may i have another


Discover it: 8700
Amex BCP: 3600
22k student loan
Ficos 8's ~770
Inq: EX:2 EQ:1 TU:1
Message 5 of 14
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Regular Contributor

Re: Whats your typical impact for new account?


@Remedios wrote:
Last four new accounts...I've lost between 3 and 0 points. I dont see much in terms of change in either direction.
Of course it's hard to penalize me for new account, as penalty is already in place.
Last year, after gardening for 13 months, I lost about 15 points for a new account.
So, it's really profile dependent for sure.

Very true, im sorry i never apped that amazon card for you remmy🙈 you were right i diiiid want it but i think the day after i made that thread the amex reported and it spooked me haha. Maybe in a month or two i can pick up something new- amazon or not😝


Discover it: 8700
Amex BCP: 3600
22k student loan
Ficos 8's ~770
Inq: EX:2 EQ:1 TU:1
Message 6 of 14
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Super Contributor

Re: Whats your typical impact for new account?

Yeah it totally depends on whether you’re resetting your AoYA or not; if so, it’s going to cost you, if not, like CiC said, how much does it affect your aggregate utilization and AAOA?
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.

RIP:







Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 7 of 14
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Super Contributor

Re: Whats your typical impact for new account?


@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.


Total revolving limits 648500 (572500 reporting) FICO 8 EQ 728 TU 755 EX 732

Message 8 of 14
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Super Contributor

Re: Whats your typical impact for new account?

LOL, I bet you don’t SJ! Your AoYA stays reset and you’ve got so many accounts to stabilize your AAOA! 😉
For a collection of our current FICO scoring wisdom, updated as we learn, read the following. Watch the revision dates on the bottom of the first 8 posts as they are regularly updated: Link to Scoring Primer.

RIP:







Updated June 2020, unless otherwise noted. I took an HP on EX, will reflect on next update.

(Forgive typos, mobile.)(Everything said is Just IMHO.)

In order to better answer your questions and record your DPs, please provide your profile stats: Any baddies? Severity and recency? (clean/dirty), Number of accounts, both open and closed on CRs (thick/thin), AoOA? (aged/nonaged), AOYRA-Age of Youngest Revolving Account (new accounts/no new accounts)? Open/closed loan on CR?
For example, mine is clean/thick/aged/new account, with open loan on record.
If you don't know where you fall, just detail any baddies, your number of open and closed accounts, AoOA, AOYRA and whether you have a loan on record.

For utilization questions, list individual and aggregate utilizations, revolving and installment, please.
Message 9 of 14
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Super Contributor

Re: Whats your typical impact for new account?


@Birdman7 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.


Total revolving limits 648500 (572500 reporting) FICO 8 EQ 728 TU 755 EX 732

Message 10 of 14
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