@Anonymous wrote:Hey CD! Somebody posted a link (last fall) to an official FICO publication that clearly implied that their cutoff for what constituted a "new" account was 1 year. I think it may have been Thom Thumb. It was smuggled pretty far into the document but was unmistable nonetheless. I had always leaned towards thinking that FICO implemented new = < 2 years as well, so I remember being struck by that at the time.
Naturally I forgot to save the link. :-)
But however FICO defines it internally (1 year or 2) adding a brand new account certainly constitutes a new account, and could cause a profile's percentage of new accounts to cross over some tipping point. The New Credit category does seem to count the number of new accounts that you have as a factor.
Doubt it. I was clean for 13 months and then took 4 new tradelines, nothing, nothing, nothing, drop when I crossed an AAOA boundary. I've never ever found a "new accounts" penalty in the algorithm but I've never been clean for 2 years either.
Here are a couple screen shotson Fico Reason codes. I came across this "little gem" a few months back. I saved the PDF but I have no link to it. There are 99 reason codes in the document. If you can find it, great - I couldn't relocate. {new accounts is mentioned - but this particular document does not define "new" in terms of length of time.
I'll search my electronic library when time permits for other info on new accounts.
30 | Time since most recent account opening is too short | Your FICO® Score considers how recently you opened a new credit account. People who recently opened a new credit account are more likely to miss future payments than those who have not. | Actions You Can Take Avoid opening more credit accounts at this time and as a general rule, if you don't need or plan to use credit, don't apply for it. |
Copyright ©2001-2014 Fair Isaac Corporation. All rights reserved.
@Anonymous wrote:Hey CD. I just found that document published by FICO (Jan 2015) that defines "new account" to be one opened in the last 12 months. I think it may have been TT who originally alerted me to it.
http://www.car.org/media/pdf/Back_to_Basics_FICO_Myths_Debunked.pdf
You can their implied definition on slide 21:
New accounts —number of tradelines opened in last year
Hrm.
I've gone >1 year previously and then app spreed: all my data suggests there wasn't a seasoning boundary at 12 months as any drop I incurred from new tradelines was a result of AAOA changes rather than anything else (or letting a new large balance report which was sorted right quick like). My memory is foggy as to whether that was tested when Scorewatch was still Beacon 5.0 or if we'd switched to Beacon 9.0.
Actually I can pull this out of last year's data since some CC's reported before mortgage and that was FICO 8 for sho:
My report was seriously busy but my first tradeline to report was the Penfed PLOC with no change in FICO score.
Last tradeline opened prior to that was May 14 (compared to 8/15) so more than 12 months.
Second tradeline to report was a CSP with a 7K balance (-5 points) and I gained the 5 points right back after I paid it, go go Chase mid-cycle report.