Ouch...Score dropped more than I expected....

[Anonymous]

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@Trudy

So you agree that when my new MTG with $0 pd and closed MTG with 33% pd should not impact my score further?

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From an AoYA perspective, that's correct.  Keep in mind though that AAoA is also an age of accounts scoring factor that can be impacted from the opening of a new account.  The third and final age of accounts factor, AoOA cannot be impacted by adding a new account.

This being said, if your AAoA drops across a threshold from a new account reporting, you could see a slight score drop.  If you do see a score drop, that's most likely the reason.  Then you'd have to determine your before/after AAoA and try and figure out the threshold point, as those aren't well documented.  Many people feel they could be at whole numbers of years (converted to months) so for example 48 months, 60 months, 72 months, etc.  The mid-points may be thresholds as well, but maybe not every single one... 54 months, 66 months, etc.  I know for sure on my profile that 78 months was one (6.5 years) although the crossing of that point only constituted a 4 point impact. 

Example:  Perhaps you figure that your AAoA drops from 64 months to 57 months from the addition of another account to your CR.  Maybe your score goes down 7 points from this.  You may theorize that the threshold is at 60 months.  If that's the case, in 3 months your now 57 month AAoA would be up to 60 months and those 7 points may (and probably would) return.  If they didn't return, you know that in another 4 months you'll be back to 64 months where you were originally, so no later than that time you'd get those 7 points back.  

Hopefully that is helpful.

[Trudy]

Thanks @BrutalBodyShots.  It does help.

Although I know each person may have a different profile, creating different thresholds, I assume (maybe falsely) with an AAoA of 12.5 yrs, this new acct reducing it to 11.9 yrs, that this is enough above "a" threshold that it should not cause a change.  I will watch closely and provide an update. 

I know my previous AoYA was 1.10 yrs, the next youngest 1.11 yrs.  Wonder if crossing 2 years will have an impact.  At the same time I will have an inquiry from 9/2016 drop from each CRA, 2 from TU.  May be difficult to determine what may cause changes in the next month or 2.

[Anonymous]

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@Trudy

Although I know each person may have a different profile, creating different thresholds, I assume (maybe falsely) with an AAoA of 12.5 yrs, this new acct reducing it to 11.9 yrs, that this is enough above "a" threshold that it should not cause a change.  I will watch closely and provide an update. 

I know my previous AoYA was 1.10 yrs, the next youngest 1.11 yrs.  Wonder if crossing 2 years will have an impact.  At the same time I will have an inquiry from 9/2016 drop from each CRA, 2 from TU.  May be difficult to determine what may cause changes in the next month or 2.

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If you AAoA is going to be > 8 years both before/after the addition of a new account to your CR, I agree that there would be no scoring change associated with the AAoA drop.  Essentially everything above 8 years from what I've come to understand is gravy.

Regarding AoYA and the 2 year mark, I think it's possible that a few points could be obtained at that point, but that amount would be far diminished to the biggest bump which comes at the 1 year mark. 

As far as inquiries go, keep in mind that they become unscoreable after 365 days, even though they stay on your report for 2 years.  Your inquiry from 9/2016 that is due to come off will have no impact on your score at all.  What you should look to however are any inquiries you took on from 9/2017 to present, as crossing 365 days in age on any of those could positively impact your score as they become unscorable.

[Trudy]

Thanks @BrutalBodyShots.  You have been a wealth of information.

It seems my extra inquiries on EX, 3 within 12 months is a theshhold for my profile as 3 seemed to move me from very good to fair in inquiries after the 3rd (per creditscore.com) and possibly impacted my sore.  So I assume (again, maybe falsely) that the # of inquiries impact my profile, possibly because I've not ever had more than 3 within 12 months but have seen many post with well above 3 that seemingly didn't impact them (maybe no new acct resulting from inquiries).

[Anonymous]

Don't get too caught up in the "fair" verses "good" stuff that you see from CMS software.  It's all fluff and designed to dumb things down for people.  Going from 2 inquires to 3 may take someone from "good" to "fair" but could potentially have no impact at all on their credit scores. 

The best way to know how many points you'll gain from an inquiry hitting the 1 year mark is to note how many points you lose (if any) when you take on the inquiry.  If you lose 5 points from an inquiry, you'll gain back those 5 points 365 days later. 

[Trudy]

Just thought I'd provide an update.  I falsely assumed the 14 -17 pt loss I received across all 3 CRA was due to the new account, resetting my AoYA to 0.  Apparently that did not impact me somehow.  I rotate cards for AZEO and the one reported paid before the other reported a balance.  My scores dropped when that account reported paid and I had no revolvers reporting a balance. 

So far, TU and EX returned all of those points once the other account reported a balance.

So I believe someone noted in this thread that I should not expect 'another' ding when my new MTG reports.  Since I seemingly wasn't dinged for the new CC that already reported I suppose now I will be for my new MTG?

[Anonymous]

If you had a new account report already, assuming the account opening date is correct your AoYA should be figured based on the age.  This many times is 1 month, as by the time a new account reports the 1st of the following month (after the opening date listed on the account) has passed.  Typical AoYA drops from a new account being added are going to fall to the 0-2 month range, with 1 month probably being the most common just based on the amount of time it typically takes a new account to report on average.

[Trudy]

@BrutalBodyShots

I read, stepped away and re-read and for some reason I'm not understanding...

The new CC reported in late August with the correct opening date of 8/9 (8/1 on EX), before I received an alert my score dropped 17 points. So I thought the score drop that came the next day was a result of that.  But apparently not.  My new MTG will likely not report until October, maybe even November as my 1st payment is not due until October and my credit reports still show the outstanding balance from my old MTG, which is paid, but has not been reported nor updated since 8/6 (I closed on the re-fi on 8/7).  I am wondering since it doesn't appear I took a hit for a new account reporting, should I expect a hit once the MTG reports?

[Trudy]

Oh, I think I get what you're saying now.  I guess I was looking for an answer in there regarding whether I should expect a hit when the MTG reports.

[Anonymous]

You would not expect a hit related to AoYA, as your AoYA is currently 1 month and at most will be 2 months when your next new account reports.  A drop from 1-2 months AoYA to 0 months will not result in a score drop.  Any penalty you're experiencing from AoYA drop is already in place from your last account that reported in August.  AAoA is a different factor that may or may not cross a threshold when it is reduced from the new account being added.  You'd have to compute your before/after though to try and gauge any potential impact there.