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Score impact of approval -20, -50?

Vestpocket
New Visitor

Score impact of approval -20, -50?

The FICO Score Simulator claims that, even with scores between 820 and 846, getting a single new credit card with any line of credit will remove 20 to 50 points from every score.  I currently have 3 revolving lines of credit.  I do not need credit nor do I carry any balances.  I simply wanted the new card to help my credit profile by adding an additional account in good standing.

 

Would a new card actually knock a whopping 20-50 points off of my credit scores?

 

Even simulating one single hard inquiry (I have 0) knocks off 10 points.  My understanding was that it was only supposed to be 4 to 6.

9 REPLIES 9
tcbofade
Community Leader
Super Contributor

Re: Score impact of approval -20, -50?

Sadly, yes.

 

With no inquries on your credit reports, adding one will hit you for ten - twenty points.

 

Assuming the same zero new accounts in the last 24 months, adding one will hit you for ten - twenty points.

 

Finances are more important than Ficos.

 

If a new account will serve you, get it... but be prepared for the score hit.

 

Good luck!


11/01/21 Fico 8: EX 746, EQ 757, TU 758.
11/03/21 Fico 9: EX 745, EQ 758, TU No idea.

Zero percent financing is where the devil lives...
Message 2 of 10
HeavenOhio
Community Leader
Senior Contributor

Re: Score impact of approval -20, -50?

Welcome, @Vestpocket. Smiley Happy

 

Beware of simulators; they can be misleading.

 

That said, you're probably positioned for a good-sized hit, although 50 points seems high. A biggie is bringing the age of your youngest revolving account (AoYRA) to zero. Then there's the reduction in average age of accounts (AAoA) and the inquiry.

 

You'll recover from the inquiry and the AoYRA hit in a year. If you add a second new card or subsequent cards, AoYRA will be reset to zero again. But it's unlikely you'll lose any more points for that reason. You'll simply delay the recovery of your points. AAoA will recover once it returns to the point where it is now.

Message 3 of 10
SouthJamaica
Super Contributor

Re: Score impact of approval -20, -50?


@Vestpocket wrote:

The FICO Score Simulator claims that, even with scores between 820 and 846, getting a single new credit card with any line of credit will remove 20 to 50 points from every score.  I currently have 3 revolving lines of credit.  I do not need credit nor do I carry any balances.  I simply wanted the new card to help my credit profile by adding an additional account in good standing.

 

Would a new card actually knock a whopping 20-50 points off of my credit scores?

 

Even simulating one single hard inquiry (I have 0) knocks off 10 points.  My understanding was that it was only supposed to be 4 to 6.


1.  Simulators are not reliable.

2.  I doubt it would cost you that many points, and I'm sure you would regain the points quickly. 20 points? Maybe. 50 points? I doubt it.

3.  I don't think you will improve your profile by adding a 4th card;  3 is quite enough.


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 4 of 10
Mr_Mojo_Risin
Senior Contributor

Re: Score impact of approval -20, -50?

If you don't really need a new CC right now, I'd pass on it. You have enough revolvers for a healthy profile.

A 50 point loss seems really extreme, but guessing up to 15-20 more likely.

NFCU More Rewards 28K CL
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Message 5 of 10
rostrow416
Frequent Contributor

Re: Score impact of approval -20, -50?

Even if the score hit simulated is accurate, your profile and scores are healthy enough to see no meaningful change overall.  And your score will eventually move back up once the initial hit of the inquiry wears off and the new account ages a bit.

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Message 6 of 10
FlaDude
Established Contributor

Re: Score impact of approval -20, -50?

Mine dropped around 25 points from 835 to 810 range when I got my last card, and rebounded about the same after a year.

Scores: March 21 FICO 8: EX 810, TU 808, EQ 813
AoOA: closed: 36 years, open: 25 years; AAoA: 11.8 years
Amex Gold, Amex Green, Amex Blue, Amex ED, Amex Delta Gold, Amex Hilton Surpass, BoA Platinum Plus, Chase Freedom Unlimited, Chase Amazon, Chase CSP, Chase United Explorer, Citi AA Plat, Sync Lowes, Sync JC Penney - total CL 145k
Loans: Chase car loan (35k/6yrs 0.9%)
Message 7 of 10
disdreamin
Established Contributor

Re: Score impact of approval -20, -50?

Paying off my auto loan and mortgage, opening a new auto loan, and opening a new cc - all within about 4 months - cost me less than 50 points total. For that reason I'd say that -50 is probably unlikely, but depending on AAoA and such -20 might be possible.

Message 8 of 10
Vestpocket
New Visitor

Re: Score impact of approval -20, -50?

I believe AAoA is something like 4.5 years.

 

I also wanted a new card because the FICO app claims "not enough accounts" with just 3.

Message 9 of 10
SouthJamaica
Super Contributor

Re: Score impact of approval -20, -50?


@Vestpocket wrote:

I believe AAoA is something like 4.5 years.

 

I also wanted a new card because the FICO app claims "not enough accounts" with just 3.


Don't worry about the "not enough accounts" code; you have enough for a perfect score.


Total revolving limits 698000 (605000 reporting) FICO 8: EQ 721 TU 742 EX 715

Message 10 of 10
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