Huge TU drop for new account? Insight??

Anonymous · ‎08-16-2016

So, I posted under the Rebuilding topic about my 4-month journey from a low of 494 (TU) to a whopping 731 (TU) after cleaning my reports and opening my first-ever credit cards. That post gives more history and detail, but to sum up my issue:
I got my first cc in April, followed by 2 more in May. After 4 months of PIF and keeping UTIL below 10%, I got a small auto CLI on one card, taking my total CL from $900 to $1100. My TU score jumped to 731 (last baddie fell off TU at this time as well...EQ and EX still hovering around 630ish). I was planning on gardening for a year after opening 3 cards in as many months, but decided on a whim to test the power of my new 700+ and try for the TJ Maxx store card while shopping. I was approved instantly for the full use-anywhere TJX Rewards MasterCard for $2k (a big deal for me as it's my highest CL ever). However,while the hard pull cost me just 5 points, a few days later the new account showed up on TU and my score dipped over 30 points! Is that typical??
Btw, it was reported with a $141 balance, so still safely under 10%. My AAoA was 1 year 3 months (all I have is a 4 year old student loan and those 3 new cards since April). Did I drop below some age threshold that caused the big drop? Why didn't EX/EQ drop when the new account showed up?

Every time I think I'm finally grasping how it all works, something happens to remind me that I'm relatively clueless.

takeshi74 · ‎08-16-2016

"Typical" isn't relevant. What is relevant is the specifisc of the data in your reports. It's certainly possible to see a bigger impact with a score based on one CRA's data versus another or the other 2. We would need to know a lot more about how your reports differ (I know you mention the other thread but you need to include as much info as possible here) to provide meaningful feedback but without the info I wouldn't suspect that the scoring model is wrong.

To determine the cause(s) of any scoring change you need to compare reports from before and after the change. You cannot just look at the scores and rely on what you assume the changes to be.

@Anonymous wrote:
I was planning on gardening for a year after opening 3 cards in as many months, but decided on a whim to test the power of my new 700+

For one thing, that many new accounts with your profile can certainly be a concern. Don't rely solely on score. You need to be able to assess your reports. Hitting X isn't a carte blanche to go out and apply for new credit without any impact.

kdm31091 · ‎08-16-2016

At this point it's not like you can do anything about it. Just have to wait, let the new account age, and refrain from more new accounts.

It's hard to define any kind of typical drop because so many factors go into scoring. Everyone's profile is different and the impact is always going to be different based on that profile.

Nevertheless, I wouldn't lose sleep over it. Keep the accounts in good standing, let them age, and don't apply for anything for several months. Your score will bounce back.