Elijahmex wrote:A year ago i started at 580 and 12 months later I made it to 742. I didnt do that by not worrying. It just hurts to hear that I will take a huge hit even if in the long run it will be beneficial.
I get what you're saying but you can't just expect constant score increases -- especially if you're building. You don't want to tank your scores when opening new accounts (i.e. add accounts as you need them and as your profile can handle them) but you have to expect that there will be smaller short term hits along the way. The old saying is "you can't make an omelette without breaking eggs".
As stated above, we have no idea what the scoring impact will be for you. With a thin and young profile you will generally see bigger impacts. This is a long, slow process and you're just starting out even a year in.
Don't just obsess over the numbers. They will go up and down even as your profile thickens and ages. My oldest accounts are 18 years old, my FICO 8's are above 800 at the moment but I've seen swings of up to 30 points. The score at a given moment doesn't really matter as much as the worry you're putting into it unless you're applying for new credit. Keep in mind that it is never just about score. Focus on the data in your reports. Keep an eye on your scores as well but worry when you're ready to app and as you're approaching an app, CLI, etc.
Elijahmex wrote:I knew to expect an HP thus a decrease in my CS but another decrease bc I added a new account? It does not make sense to me. I've never heard of such a thing.
It doesn't make sense to you because you don't understand how credit is assessed and need to educate yourself. For some reason people tend to obsess over HP's but HP's are just one factor among many and not even the most significant factor.
Any score is generated based on the data in a report. When you apply you incur an HP and it shows up on your reports almost immediately. When it shows up on the report the HP has an impact on your score since it changed your report. New accounts do not immediately report. When the account reports it also has an impact on your score but there are multiple factors at play when the new account reports. Many see a reduction in score due to a new account but it really depends on one's credit profile and the specifics of the account. It is possible to actually see a a scoring increase due to a new account under specific conditions where the positive factors significantly outweigh the negative factors.
This is a just a starting point and it only covers how FICO typically weights the factors. It does not contain all the info you need to know. It is just one resource.http://www.myfico.com/crediteducation/w ... score.aspx
HP's fall under New Credit. Note the typical size of that factor. AAoA falls under Length of Credit History. Note the size of that factor. Your recent credit seeking activity also falls under New Credit. Since you have a thin and young profile these weights aren't necessarily right for you and you can see bigger impact from New Credit. The limit and balance on the new account play into your Revolving Utilization which falls under Amounts Owed. I may not be covering every possible factor involved with applying and having a new account report but it's a matter of how all the factors add up in addition to your existing credit profile. A score will consider all the data in your report at the time the score is generated to come up with the number it produces.
Elijahmex wrote:What worries me is that the CSR told me
...and all that said, keep in mind the CSR's can mistaken and misinformed. CSR's are not necessarily underwriting experts or FICO experts. Educate yourself and use that knowledge to assess your own reports. Yes, you can also be mistaken but you'll want and need that knowledge if you intend to improve your credit. We're all constantly learning.