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Question By
spirulina

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Does opening a new card lower the credit score?
My score was OK, very stable. I opened a new card and overnight lost 70 points. Ever since (5 months) it is steady on the lower number. This is for both TransUnion and Equifax.

There is no problem in my credit history, everything paid, credit utilization around 10%, etc.

From what I read opening a new card reduces the average age of credit history, as the new card is age zero when you open it. Almost like it is a simple average instead of a weighted or cumulative formula.

Fico score was not affected.

My questions are:

1. Is the dumb average age theory true?
2. If not what caused my score to tank so sharply?
3. Can I repair my score by closing the new card?

Thanks

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1) Yes the "average age of accounts" is a factor in scoring.

2) As mentioned the scores here fluctuate a lot. Your score was dinged for a Hard Inquiry and for Lower the Average Age of Accounts, possibly other factors were involved too that were not part of opening the new card. Did your utilization go up on any other accounts? Did you heavily utilize the new card? Etc.

3) Closing the account will NOT fix anything, so DO NOT do that.

Most lenders use a version of FICO scores, NOT the scores you see here. That said, worry about your FICOs not these ones. You said your FICO scores were ok from this action, so don't worry about it.

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Don't be so worried about the score here since the Vantage scoring method does fluctuate a lot.  But, the scores here are never sent to anyone elser and they are for your education only.  That is what this site is for----TEACHING people how credit works and how to build their score.  Closing a card will lower your score so would be a stupid move.  Instead, read the articles here so you can learn what you really need to know'

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