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Experian Fico 8 Score dropped 49 points

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Anonymous
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Experian Fico 8 Score dropped 49 points

Hello everyone, I'm a little worried here. I applied and was accepted for a Chase Preferred card 2 months ago. My scores before today were Equifax 782, Transunion 801 and Experian 810. The Chase Preffered card finnally hit my credit today and dropped my Experian score 49 points! I realize this has to do with reducing my credit history.

 

Credit history prior today was average at 2 years and 6 months. As of today it's 2 years and 3 months. So I reduced my average credit history by 3 months and it dropped my score by 49 points? I also assume the other bureaus will drop their scores as well.

 

Now for the cherry on top. I was approved for my AMEX Gold Yesterday. Is it safe to assume that my score will then drop another 49 points? This will give me an avergae credit hsitory of 2 years and 2 months now. This seems like a hefty drop that is more in line with someone that closes one of their oldest accounts versus adding an account.

 

Need advice. There really isnt anyting else I can do to lift my score quick. I have 0% utilization, no missed credit payements, 2 car leases, 1 mortgage, 2 personal loans and 6 credit cards. About 3 inquires accross the board in 2 years. Gross Income $265,000

Message 1 of 28
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Anonymous
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Re: Experian Fico 8 Score dropped 49 points

49 points is a little steep. You lose points for inquiry & having your AOYA set to 0 which ultimately lowers your AAOA but unless your utilization across the board is high or your single card utilization is... you should only really see possibly 20-25 point loss give or take.
Message 2 of 28
Anonymous
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Re: Experian Fico 8 Score dropped 49 points

What is the AOYA? Also, I do notice that the credit card reflects my balance which is 20% utliziation rate of that specifc card. But it doesnt actually relfect that on the credit report. Still shows I have 0% utilization on my experian part.

Message 3 of 28
SouthJamaica
Mega Contributor

Re: Experian Fico 8 Score dropped 49 points


@Anonymous wrote:

Hello everyone, I'm a little worried here. I applied and was accepted for a Chase Preferred card 2 months ago. My scores before today were Equifax 782, Transunion 801 and Experian 810. The Chase Preffered card finnally hit my credit today and dropped my Experian score 49 points! I realize this has to do with reducing my credit history.

 

Credit history prior today was average at 2 years and 6 months. As of today it's 2 years and 3 months. So I reduced my average credit history by 3 months and it dropped my score by 49 points? I also assume the other bureaus will drop their scores as well.

 

Now for the cherry on top. I was approved for my AMEX Gold Yesterday. Is it safe to assume that my score will then drop another 49 points? This will give me an avergae credit hsitory of 2 years and 2 months now. This seems like a hefty drop that is more in line with someone that closes one of their oldest accounts versus adding an account.

 

Need advice. There really isnt anyting else I can do to lift my score quick. I have 0% utilization, no missed credit payements, 2 car leases, 1 mortgage, 2 personal loans and 6 credit cards. About 3 inquires accross the board in 2 years. Gross Income $265,000


1. It's not the average age of accounts, but the age of youngest account, that is at issue. The inquiry + resetting of age of youngest account would cost you something, but wouldn't customarily cost you 49 points. I'm assuming it's your EX FICO 8 you're referring to.

 

2. The new card, being in the same month, will reset your age of youngest account again, but it probably won't be for another 2 months.

 

I don't really know why you would have lost 49 points; there might be something else you're missing. I don't think the Amex card will hurt you much when it hits.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 4 of 28
Anonymous
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Re: Experian Fico 8 Score dropped 49 points

Thank so much for your response. I'm using the Fico 8 score. I was assuming maybe a 15 point hit. But a 49 point hit is crazy.  That card shows my balance which is 25% of my credit limit. But it's not reflecting that in the area of credit utilization yet. I will be paying this off before the closing date of the card of course so I dont believe that's the issue.

Message 5 of 28
SouthJamaica
Mega Contributor

Re: Experian Fico 8 Score dropped 49 points


@Anonymous wrote:

Thank so much for your response. I'm using the Fico 8 score. I was assuming maybe a 15 point hit. But a 49 point hit is crazy.  That card shows my balance which is 25% of my credit limit. But it's not reflecting that in the area of credit utilization yet. I will be paying this off before the closing date of the card of course so I dont believe that's the issue.


Well with Chase, as you probably know, as soon as you pay it down to zero it reports mid-cycle. So you can certainly test that.  

 

But I seriously doubt 25% utilization would cost you more than a couple of points.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 6 of 28
Anonymous
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Re: Experian Fico 8 Score dropped 49 points

You may be losing some points for NOT having 1 of your cards report a balance as well. It doesn't sound like you are having any of your cards report a balance. You want 1 of your cards to report a balance below 8.9% of its limit. You can search AZEO if you want more specific details.
Message 7 of 28
Anonymous
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Re: Experian Fico 8 Score dropped 49 points

I don’t understand. All my credit cards report monthly to the credit companies. My most recent opened card has and displays the balance. But my utilization % doesn’t reflect that yet.
Message 8 of 28
Anonymous
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Re: Experian Fico 8 Score dropped 49 points

Just an FYI for 1 new card with the 1 inquiry that hit my report my score dropped 30pts on Experian Fico 8. I had 4.6 years of credit history and 1% UTI. I thought my score drop of 30 was bs, yours seems way too steep. 

 

I think its ridiculous that these initial steep credit drops happen when applying for cards and inquires. I mean I could see 10 to 15 pts but 30 and over for 1? Over all I had a drop of 55 pts as of today 5 inquires and 4 new accounts are on my credit report, there are still 2 or 3 more products that are not showing up on my credit report and I expect my score to drop more.

Message 9 of 28
Anonymous
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Re: Experian Fico 8 Score dropped 49 points

That seems more reasonable. So in total I see myself having 4 new accounts in the next 12 months. Meaning a 200 point drop.
Sounds crazy.
Message 10 of 28
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