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How long new account dings score

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Super Contributor

How long new account dings score

When we open new account it will ding scores in short term. How long it will take the scores to bounce back after opening a new account ?

As of 1/5/2020 - EQ 576 / TU 600 / EX 566
As of 6/28/2020 - EQ 613 / TU 620 / EX 608
Gardening since 08/2020
10 REPLIES 10
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Super Contributor

Re: How long new account dings score

Depends on how many HP's you had in the past year for one. Thick or thin files matter. It's a hard one to predict. Usually 3-4 months in some cases. But like I said. There's a lot that goes into it.




My posts are JMHO. My siggy is not to brag at all. Just sharing my experiences after learning here from rebuild to recovery after BK DC @ 540's. And to show fellow members what can be accomplished when you do it right and play the FICO Credit Game.
Message 2 of 11
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Super Contributor

Re: How long new account dings score


@FireMedic1 wrote:
Depends on how many HP's you had in the past year for one. Thick or thin files matter. It's a hard one to predict. Usually 3-4 months in some cases. But like I said. There's a lot that goes into it.

Thanks. I am giving my self 6 months to recover if there is any ding. New accounts might hurt the age but should help with credit utilization. Right now I am still recovering and rebuilding cleaning up collections, and charge offs and adding new accounts and some new inquiries. So I really do not know what happens to scores. I just want scores to remain the same or improve instead of going south due to the new accounts.  Let us see in 6 months what the scores looks like.

As of 1/5/2020 - EQ 576 / TU 600 / EX 566
As of 6/28/2020 - EQ 613 / TU 620 / EX 608
Gardening since 08/2020
Message 3 of 11
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Established Contributor

Re: How long new account dings score

The first three to six months will have the most impact. No negative impact to FICO score after one year from when the account was opened and reported to the credit bureaus.

Message 4 of 11
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Super Contributor

Re: How long new account dings score


@CreditBob wrote:

The first three to six months will have the most impact. No negative impact to FICO score after one year from when the account was opened and reported to the credit bureaus.


How is the new account factored into score.

1. Credit Inquiry. That will go away in 12 months

2. Average Account Age. I guess that has some impact

3. Credit Utilization. I am sure this wll help with the scores

What else is considred for new account ding ?

--------

I know closing the account is bad. But how is effected on score.

1. Lower available credit. That I can offset by increasing the limit on other accounts.

What else is impacted when we close an account ?

 

Since rebuidling I have opened secured cards

OpenSky - AF

Merrick - AF

Indigo - AF

First Progress - AF

Affinity- No AF

State Department - No AF

 

I might pay the AF and keep them for couple of years. After that I want to slolwy get rid of the accounts that has AF and does not graduate. SDFCU and Affinity might graduate at some point when my scores are improved. I am going to get Amex Optima and Discover secured which eventually might graduate in the future or give way to new accounts with Amex/Discover.

What should I look into when I close the accounts ?

As of 1/5/2020 - EQ 576 / TU 600 / EX 566
As of 6/28/2020 - EQ 613 / TU 620 / EX 608
Gardening since 08/2020
Message 5 of 11
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Community Leader
Valued Contributor

Re: How long new account dings score


@concorduser wrote:

@CreditBob wrote:

The first three to six months will have the most impact. No negative impact to FICO score after one year from when the account was opened and reported to the credit bureaus.


How is the new account factored into score.

1. Credit Inquiry. That will go away in 12 months

2. Average Account Age. I guess that has some impact

3. Credit Utilization. I am sure this wll help with the scores

What else is considred for new account ding ?

 

Profiles usually get a boost when your AoYA reaches 12 months.

--------

I know closing the account is bad. But how is effected on score.

1. Lower available credit. That I can offset by increasing the limit on other accounts.

What else is impacted when we close an account ?

 

Accounts closed in good standing will typically stay on your reports for 10 years so your AAoA won't change during that time.  I wouldn't worry about closing any account that doesn't have a future in your profile.

 

Since rebuidling I have opened secured cards

OpenSky - AF

Merrick - AF

Indigo - AF

First Progress - AF

Affinity- No AF

State Department - No AF

 

I might pay the AF and keep them for couple of years. After that I want to slolwy get rid of the accounts that has AF and does not graduate. SDFCU and Affinity might graduate at some point when my scores are improved. I am going to get Amex Optima and Discover secured which eventually might graduate in the future or give way to new accounts with Amex/Discover.

What should I look into when I close the accounts ?

 

Disco will graduate and I can certainly recommend opening up an account.


 

 FICO 8
Message 6 of 11
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Valued Contributor

Re: How long new account dings score


@FireMedic1 wrote:
Depends on how many HP's you had in the past year for one. Thick or thin files matter. It's a hard one to predict. Usually 3-4 months in some cases. But like I said. There's a lot that goes into it.

I agree, so many variables, but 3 to 4 months has been my experience.  

 

Year 2012: All Scores in the 520 range, during a foreclosure, CC Settlement and high UTIL. Very ugly days...
June 2020: EX8: 850; EQ8: 850; TU8: 850 -- Middle Mortgage Score: 824
In My Wallet: Discover $73.7K; Cap1 Venture $42.7K; Amex ED $38K; Amex Optima $2.5K; Amex Delta Gold $18K; Citi Costco $19.5K; Cap1 Plat $8.4K; Barclay $7K; BoA Plat $21.6K; Citi TY Pref $19K; US Bank $4K; Dell $5K; Care Credit $6.5K. Total Revolving CL: $277K
My UTIL: Less than 1% - Only allow about $10 a month to report, on one account. .
Message 7 of 11
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Moderator Emeritus

Re: How long new account dings score

I think it's a lot longer than that for stable and mature files.

 

I opened two revolving accounts in April and we're now in December and I'm still out 20+ points even having fewer scoreable inquiries now than I had back then. 

 

AAOA still 5+ years in both cases, lower installment utilization, and more age in general but I'm still missing points and the only real difference is the new accounts.

 

I unfortunately don't have good reason codes for FICO 8 classic currently (above 800 on EX and sadly they suppress reason codes too which I HATE in the CMS industry) but for both FICO 8 AU and BC industry options which are at least somewhat analogous, new accounts is #2 reason code on both.  Already past 6 months, I'm not expecting to see points till the 1 year mark... and I know the reason code will be on EQ FICO 5 and other older models longer than that too.

 

That said it's a comparitively minor issue for clean files, I'm still over 800 FICO 8 and over 760 on my mortgage scores so the new accounts aren't really relevant but they are a ding.

 




        
Message 8 of 11
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Established Member

Re: How long new account dings score

3-6 months it will ding, 6-8 it will bounce back, and 24-26 months it will be removed. It may be sooner maybe later but these are rough estimates. 










Message 9 of 11
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Valued Contributor

Re: How long new account dings score


@concorduser wrote:

@CreditBob wrote:

The first three to six months will have the most impact. No negative impact to FICO score after one year from when the account was opened and reported to the credit bureaus.


How is the new account factored into score.

1. Credit Inquiry. That will go away in 12 months

2. Average Account Age. I guess that has some impact

3. Credit Utilization. I am sure this wll help with the scores

What else is considred for new account ding ?

--------

I know closing the account is bad. But how is effected on score.

1. Lower available credit. That I can offset by increasing the limit on other accounts.

What else is impacted when we close an account ?

 

Since rebuidling I have opened secured cards

OpenSky - AF

Merrick - AF

Indigo - AF

First Progress - AF

Affinity- No AF

State Department - No AF

 

I might pay the AF and keep them for couple of years. After that I want to slolwy get rid of the accounts that has AF and does not graduate. SDFCU and Affinity might graduate at some point when my scores are improved. I am going to get Amex Optima and Discover secured which eventually might graduate in the future or give way to new accounts with Amex/Discover.

What should I look into when I close the accounts ?


I'm not aware of the time period that you took to open all these accounts and that matters. Once these AF cards are over 1 year old you want to consider closing them before you have to pay the 2nd AF. But before you start closing these cards you want to replace them with cards that are No AF no matter how cheesy some of them might be.

 

You definitely don't need any more secured cards. They won't help your scores anymore than the cards you already have. You just need to run with the cards you have until your scores rise enough to get No AF unsecured cards.


Starting Score: EQ 653 6/21/12
Current Score: EQ 817 3/10/20 - EX 820 3/13/20 - TU 825 3/03/20
Message 10 of 11
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