@Iusedtolurk wrote:I was wondering since I bit the bullet and opened 2 new accounts (which I know will affect mortgage scores coming from a Clean Scorecard of zero inquiries for over 2 years so I will be hit by a new account penalty).
The question is with each new account do you suffer a new penalty per account or do you get hit with a new penalty for say 2 or 3 new accounts grouped up.
Sorta like-
1 new account lose 15-30 pts
2nd new account lose another 15-30 pts
3rd new account lose another 15-30 pts
OR
1-2-3 new accounts lose 15-30 pts
I know AAoA will reduce but would be back to same AAoA within 1 year.
There are multiple effects.
1. Inquiries. No one call tell you how many points an inquiry will cost, it varies widely with each profile. Sometimes they are bundled; i.e. the 2nd may not cost you additional points, or it may. In any event, their scoring effect will wear off after a full year has passed.
2. New account effect on AAoA. Your average age of accounts will be lowered. That never wears off, but of course a year later, assuming no new accounts, the average age will be a year older.
3. New account effect on AoYA. Your age of newest account will be reset. That of course never wears off. But after a year of opening no additional accounts, the scoring effect will largely disappear. No one can tell how many points this will cost you, but I can tell you that in my profile, which is unlike yours, I appeared to have gained 26 points in my EX FICO 8 when my age of newest account reached 1 full year, which I promptly lost as soon as I opened a new account after that. I can't recall what the EX FICO 2 reaction was, but I can tell you that in my opinion the mortgage scores are even more sensitive to these aging factors.
@Iusedtolurk wrote:
@SouthJamaica wrote:
@Iusedtolurk wrote:I was wondering since I bit the bullet and opened 2 new accounts (which I know will affect mortgage scores coming from a Clean Scorecard of zero inquiries for over 2 years so I will be hit by a new account penalty).
The question is with each new account do you suffer a new penalty per account or do you get hit with a new penalty for say 2 or 3 new accounts grouped up.
Sorta like-
1 new account lose 15-30 pts
2nd new account lose another 15-30 pts
3rd new account lose another 15-30 pts
OR
1-2-3 new accounts lose 15-30 pts
I know AAoA will reduce but would be back to same AAoA within 1 year.
There are multiple effects.
1. Inquiries. No one call tell you how many points an inquiry will cost, it varies widely with each profile. Sometimes they are bundled; i.e. the 2nd may not cost you additional points, or it may. In any event, their scoring effect will wear off after a full year has passed.
2. New account effect on AAoA. Your average age of accounts will be lowered. That never wears off, but of course a year later, assuming no new accounts, the average age will be a year older.
3. New account effect on AoYA. Your age of newest account will be reset. That of course never wears off. But after a year of opening no additional accounts, the scoring effect will largely disappear. No one can tell how many points this will cost you, but I can tell you that in my profile, which is unlike yours, I appeared to have gained 26 points in my EX FICO 8 when my age of newest account reached 1 full year, which I promptly lost as soon as I opened a new account after that. I can't recall what the EX FICO 2 reaction was, but I can tell you that in my opinion the mortgage scores are even more sensitive to these aging factors.
@SouthJamaicaThanks I really appreciate your input. I do realize the mortgage scores are pretty sensitive to those factors and I will definitely know when the dust clears and the new accounts (2) report.
On another note every time I see your data I shake my head in wonder how in the world did you get to that TCL (super impressive).
Did you ever make a post on how you did it?
I know in this forum there are a number of members with Impressive TCLs and Number of cards over 100+ that blow the minds of rebuilders such as my self.
I have learned a lot and will continue to learn more through this fantastic forum and I help younger people get started earlier than I did with credit and also forum members who experience scenarios I have so far gone through.
Most welcome.
Thanks for the compliment, but I don't consider accumulating a lot of cards to be an accomplishment worth emulating. It was all premised on ignorance. The first place I went to for information on building credit was, unfortunately, Credit Karma, to which I had been referred by one of my bank tellers. I wish I'd found this forum first. There, for their own greedy purposes, they try to convince people that the more credit accounts you have, the better. They had a pyramid, with 1-5 accounts at the bottom, 6-10 in the middle, and 11-15 at the top. So being ignorant I went on a campaign to go from zero to 15. By the time I'd accomplished that goal I learned how asinine that was.
From that point on I've just been trying to hold my own, and improve what I have by trying to substitute things that are not useful to me for things that are. E.g., business travel cards, no matter how great, are not useful for me because I haven't had much business travel. Personal cash back cards are of limited utility to me because I'm not a big spender. Credit union non-rewards platinum cards with lower rates, no balance transfer fees, and no cash advance fees are very useful to me, because they help me manage things.
@Iusedtolurk wrote:
@SouthJamaica wrote:
@Iusedtolurk wrote:
@SouthJamaica wrote:
@Iusedtolurk wrote:I was wondering since I bit the bullet and opened 2 new accounts (which I know will affect mortgage scores coming from a Clean Scorecard of zero inquiries for over 2 years so I will be hit by a new account penalty).
The question is with each new account do you suffer a new penalty per account or do you get hit with a new penalty for say 2 or 3 new accounts grouped up.
Sorta like-
1 new account lose 15-30 pts
2nd new account lose another 15-30 pts
3rd new account lose another 15-30 pts
OR
1-2-3 new accounts lose 15-30 pts
I know AAoA will reduce but would be back to same AAoA within 1 year.
There are multiple effects.
1. Inquiries. No one call tell you how many points an inquiry will cost, it varies widely with each profile. Sometimes they are bundled; i.e. the 2nd may not cost you additional points, or it may. In any event, their scoring effect will wear off after a full year has passed.
2. New account effect on AAoA. Your average age of accounts will be lowered. That never wears off, but of course a year later, assuming no new accounts, the average age will be a year older.
3. New account effect on AoYA. Your age of newest account will be reset. That of course never wears off. But after a year of opening no additional accounts, the scoring effect will largely disappear. No one can tell how many points this will cost you, but I can tell you that in my profile, which is unlike yours, I appeared to have gained 26 points in my EX FICO 8 when my age of newest account reached 1 full year, which I promptly lost as soon as I opened a new account after that. I can't recall what the EX FICO 2 reaction was, but I can tell you that in my opinion the mortgage scores are even more sensitive to these aging factors.
@SouthJamaicaThanks I really appreciate your input. I do realize the mortgage scores are pretty sensitive to those factors and I will definitely know when the dust clears and the new accounts (2) report.
On another note every time I see your data I shake my head in wonder how in the world did you get to that TCL (super impressive).
Did you ever make a post on how you did it?
I know in this forum there are a number of members with Impressive TCLs and Number of cards over 100+ that blow the minds of rebuilders such as my self.
I have learned a lot and will continue to learn more through this fantastic forum and I help younger people get started earlier than I did with credit and also forum members who experience scenarios I have so far gone through.
Most welcome.
Thanks for the compliment, but I don't consider accumulating a lot of cards to be an accomplishment worth emulating. It was all premised on ignorance. The first place I went to for information on building credit was, unfortunately, Credit Karma, to which I had been referred by one of my bank tellers. I wish I'd found this forum first. There, for their own greedy purposes, they try to convince people that the more credit accounts you have, the better. They had a pyramid, with 1-5 accounts at the bottom, 6-10 in the middle, and 11-15 at the top. So being ignorant I went on a campaign to go from zero to 15. By the time I'd accomplished that goal I learned how asinine that was.
From that point on I've just been trying to hold my own, and improve what I have by trying to substitute things that are not useful to me for things that are. E.g., business travel cards, no matter how great, are not useful for me because I haven't had much business travel. Personal cash back cards are of limited utility to me because I'm not a big spender. Credit union non-rewards platinum cards with lower rates, no balance transfer fees, and no cash advance fees are very useful to me, because they help me manage things.
@SouthJamaicaYou deserve the accolades and your humility is acknowledged concerning your accomplishments.
Building up a few cards is a hobby and an accomplishment for me as I started in the credit game late. I have 11 cards plus the 2 new ones I just acquired so total 13. That's good for me now and enough to juggle while hobbying.
My 2 new ones NFCU Plat and Penfed Powercash.
Since you have these 2 cards I would like to know have you used them to Balance transfer to an external checking account?
I would like to pay down a few cards and rather pay from my checking so I know the process will be fast and easy.
The Power Cash is great for making purchases, but not for anything else.
The NFCU Platinum is very versatile. Worthless for purchases, but can be used for fee-free balance transfers (which take around a week and a half to go through) and for fee-free cash advances into your checking account. And both are easily repaid with pulled or pushed payments.
So if you want to use your checking account rather than do a balance transfer you just transfer from your platinum card into your checking account and make the payment from there. The problem is that the cash advance APR is 2 points higher than the balance transfer APR. And NFCU offers promotional balance transfers, but there's no such thing as a promotional cash advance.
