New Accts Hit...CK Scores Tanked by 40 pts for both CRA's :(

[DoroLucky]

Not sure if this makes sense lol....but I recently opened 5 new accounts....Discover IT, Amex BCE, Amex Delta Skymiles Gold, SaksFirst Store Card, Citi Thank You Pref. Last week, all had their first statement cut and reported except for both Amex which will hit any day now as both closed yesterday. They all hit my report at the same time with a balance along with an existing acct., see below for the breakdown. 

• Discover closed with about a $2800 balance ($2500 from a BT offer and some small spend, but the card the balance came from closed at $0)
• Citi closed with about a $1300 trying to meet my spend bonus (it's since been paid)
• Saks closed with about a $1000 (half has been paid and the rest will be paid before it closes again)
• Neiman Marcus also closed with about a $1000 but it was $0 the last time it hit (half has been paid and the rest will be paid before it closes again)

So my question is, was the dip caused by the 3 new accts reporting with balance? Or was it the BT? Or could it be from the NM that didn't carry a balance but does now? Or is a combination of util and new accounts being reported?  My overall CL did increase with the new accts along with my balances and the only new balances really were from Saks, NM, and Citi...the BT on Discover had already been there from my QS card. How long will it this take to recover from this nose dive? As far i'm I'm concerned, nothing else changed. 

Also when both Amex hit, BCE will close with a $1600 balance because I wanted to meet my spend bonus. Will I see another huge dip? I will have it paid to $0 by the time the next statement cut. The Delta will report as $0, I've met my spend bonus and piad it off because I did not want a balance reporting.

Again, I hope it all makes sense and thanks for reading and responding. 

[Anonymous]

Congrats on your new accounts!

You scores will drop from

1-New inquiries

2-Newly reported accounts

3-More usage than last reported (last month, last week etc)

4-Many accounts with balances.

So, if you recently opened several accounts and most or all new ones have balances, you're getting hit with all 4 above reasons. Utilzation say from 4% to 5% changed my fico 2 points. You do the math compared to last month. CK is not real Fico score and tend to penalize even more for those changes.

[fltireguy]

Youve been on here for a while.. you KNOW that the CK score is a FAKO, don't you? lol...

Vantage seems to put more weight towards taking points away for new accounts than FICO does, I have a 100++ point difference between my FICO8 and Vantage on TU

[redpat]

CK means nothing......CK only good as a credit monitor their scores are worthless.

You will be fine, I'm sure your true FICO scores didn't take that kind of hit.

[DoroLucky]

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@fltireguy wrote:

Youve been on here for a while.. you KNOW that the CK score is a FAKO, don't you? lol...

Vantage seems to put more weight towards taking points away for new accounts than FICO does, I have a 100++ point difference between my FICO8 and Vantage on TU

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HAHAHAHAHA yes I know but this is the most I've seen it dip ( scared me lol) since I've been doing this credit thing and I'm not sure what my real fico scores are doing. I did have MyFico monitoring but ended my subscription because it was costing me almost $300 a year and I don't think I need to monitor so closely until I'm ready to buy my house next year. 

And another thing, my FICO and FAKO's were pretty close when I had MyFico monitoring. 

[DoroLucky]

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@Anonymous wrote:

Congrats on your new accounts!

You scores will drop from

1-New inquiries

2-Newly reported accounts

3-More usage than last reported (last month, last week etc)

4-Many accounts with balances.

So, if you recently opened several accounts and most or all new ones have balances, you're getting hit with all 4 above reasons. Utilzation say from 4% to 5% changed my fico 2 points. You do the math compared to last month. CK is not real Fico score and tend to penalize even more for those changes.

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Okay thanks. I've been on here for a while but don't actually understand how the CK fako measures up to my actual fico's. 

[Anonymous]

It was probably because of the new inquiries and utilization which seems to be high, although you didn't mention your CLs. You shouldn't worry too much about your scores, unless you're planning to open a new account, which given you just opened 5 I think you shouldn't. As far as score recovery goes, the affect of inquiries should wear off in a couple of months. You should also do something about your utilization. If you run high balances through your cards, you should pay most of it back before the statement cuts, so at the time of your statement your utilization is less than 10% on each card. Most people say that you should pay off ALL cards so the statement is $0, except for one which should report some small balance. Personally I don't care much about that and I don't believe it makes much of a difference. 

Also keep in mind that CK shows you a VantageScore, not a FICO. But, even though those two scores might differ a lot, the ups and downs will be almost the same, so VS is still a good indication of wether you're doing something wrong or not. You can get a TU FICO from your Discover card.

[galahad15]

Congrats on the recent amazing new cards! 

[Anonymous]

Try to relax and get some FICO scores.

To put it in perspective...I've added 5 or 6 new accounts and something like 8 inq to all 3 bureaus in the past two months.

My actual FICO dipped 7-8 points initially and then within another month all went up by 30+ points.

But this is largely because I continued paying down balances and didn't up the utilization on new cards...so utilization dropped significantly AND I had more cards reporting a 0 balance...my overall utilization from February to now has dropped something like 40%.

So...to cancel out the effects of new accounts and inqs...it helps if you keep the new cards reporting at a 0 balance and continue to drop your utilization.

[CreditDunce]

Higher than normal util will hurt this month's FICO score.  But it doesn't do any lasting damage.  FICO doesn't care what your utilization was last month.  Worry about maximizing your scores when it is important that you have a high FICO score.

The rule of thumb is it takes about 6-12 months after an app spree to recover your previous FICO score.  It isn't a hard and fast rule, though.  For example, someone adding two cards when they only had one may see a small increase due to FICO liking at least 2-3 revolving accounts.  The new accounts can also help reduce your overall utilization boosting your short term FICO score.  FICO doesn't care about your overall CL or even how big your card limits are.  It only cares about the current ratio.  VS 3.0 does like  to see higher CL's.

You now have three, free monthly FICO scores: EQ-08 BE, EX-08 and TU-08.   Since these are the scores CITI, Amex and Discover use, they are a much better gauge then CK.    Although, they will not mean squat for mortgage companies.