New Card drop a few points

[Tankee]

Hello,

I JUST got a new DISCOVER card and activated it. I charged $18.00 on the card. A new account alert pop up and showed that my score dropped 3 points. Why would the score drop? 

Thanks

[Anonymous]

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@Tankee wrote:

Hello,

I JUST got a new DISCOVER card and activated it. I charged $18.00 on the card. A new account alert pop up and showed that my score dropped 3 points. Why would the score drop? 

Thanks

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not uncommon. Probably lowered your average age of accounts. In a few months it will go up. Give it time. Dont use your debit card unless its mandatory. Throw everything possible onto credit card as long as you can pay in full. If money management is an issue then pay each week or each day if you have to.

[kdm31091]

New accounts often ding your score a bit, because of the inquiry and the AAOA drop. It will recover with time.

[Tankee]

THanks KDM,

Ok, so this is normal. Can you please tell me what AAOA stands for? I see it time to time and I can't figure it out... Yes...I am a blonde... but not naturally!

Thank you.

[kdm31091]

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@Tankee wrote:

THanks KDM,

Ok, so this is normal. Can you please tell me what AAOA stands for? I see it time to time and I can't figure it out... Yes...I am a blonde... but not naturally!

Thank you.

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Average age of accounts. Opening a new account obviously lowers it because the account is new. It recovers with time.

[Tankee]

Ohhhhhh ok! Got it! 

Thank you!

[mongstradamus]

I wish with new app i would only get a 3 point drop. I just got two new accounts andd my score dropped 33 points :-(

[Tankee]

Oh my!

[Thomas_Thumb]

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@mongstradamus wrote:

I wish with new app i would only get a 3 point drop. I just got two new accounts andd my score dropped 33 points :-(

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I can relate.

if I opened two new accounts, my score would likely drop +30 points - Due to a huge drop in AAoA, step change in age of newest account and putting inquiries back on reports. That's the potential impact for only having a few well aged accounts. So far I have resisted new card temptations.

Picture a submarine that has risen to the surface - open a couple accounts - then all hands below deck, prepare to dive!

[jawbrkr]

So the points drop is not uniform no matter the card carrier. If say person X has an AAOA of 6 months and person Y has an AAOA of 2 years. Both open a new account. Would it be fair to say X would suffer a bigger point loss than Y due to the lower AAOA?