Credit Score Dropped 23 Points When New Account Reported Today

[wildboys]

My Equifax Fico 8 score dropped 23 points today when a new account I open last month reported today.

Is this because the age of my credit decreased? I have 5 revolvers that I am the primary holder, and one AU account

that is 19 years old. I also have 1installment loan that is 94% paid off. I got my first revolver in November of 2020.It looks like myFICO does not factor in my AU account age in the average of my accounts. Is this just a temporary hit for now? Thanks.

[simplynoir]

The point drop you experienced can be attributed to the new account reporting as you thought. It is temporary though as the account ages and your credit profile passes various thresholds for aging. It'll be touchy for awhile especially since you're saying your first card was back in November 2020 so your profile is quite young. Let your cards age and you should see your score recover

[SouthJamaica]

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@wildboys wrote:

My Equifax Fico 8 score dropped 23 points today when a new account I open last month reported today.

Is this because the age of my credit decreased? I have 5 revolvers that I am the primary holder, and one AU account

that is 19 years old. I also have 1installment loan that is 94% paid off. I got my first revolver in November of 2020.It looks like myFICO does not factor in my AU account age in the average of my accounts. Is this just a temporary hit for now? Thanks.

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Yes it's a temporary hit.  You have been adding a lot of new credit in a short period of time.  You should make  no applications for awhile, preferably for a year.

It's probably attributable to resetting age of newest account, lowering average age of accounts, and possibly the inquiry.

[Anonymous]

It's temporary but that's still a large drop. The problem is scores drop fast but it takes awhile for them to go back up. 🙄

[kilroy8]

This is in line with what I saw on a clean, thick, aged profile. The points trickle back in over the next year.

[Anonymous]

Your score will recover in 3-6 months mostly, probably all the way by 12 months.