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How new triggers "too many new"?


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Just opened two HH and One Citi account in the last couple of months

TU tells me

"There are too many recently opened accounts on your credit report."

Ironically I'm also seeing

"There are not enough accounts in good standing on your credit report....

....If you do not have many open accounts, consider opening a new credit account or asking your creditors to increase your limits in order to improve your credit score. "

So my question is, how long (roughly) does it take an account to stop being new?

I did have open a new Cap1 account in August but I just killed that. Presumably it drops off fairly soon.

Maybe Target Visa beckons too....

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If I had to guess I would say between 6 months to a 1 year before it stops being "new".

And the reason I say that is because Im sorta going by the way they look at inq. and the frequency of them within a 6 month period. (has a bigger impact than ones older than 6 months).

Hope that makes sense. :D

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Your credit score is a numerical computation of your perceived risk as a borrower. That risk can't be assessed without a long history of how you manage the account. Therefore, "new" accounts trigger deductions in your score, so do inquiries, cuz you might be opening new accounts.

For purposes of credit, anything less than a decade is considered "young". Nothing is factored (good or bad) for at least 6 months, (exept the hit you took for the inquiry). The account is labeled "new" from 6 mos to 2 years, (decreasing sharply as time goes by). This whole category accounts for 15% of your score. Closing and opening new accounts and transferring balances from credit card to credit card looks risky and your score will reflect that risk.

All consumers need to have between two and four revolving accounts. They have to be paid on time every month, need to be opened early in life and kept open (from then on...), need to have balances maintained below 30% of whatever their credit limit is. This strategy will (eventually) add 30 points to your score, maybe more. :D

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*wonders if she was obtuse*

"new account" hit = accounts less than 6 mos old.

decreasing "new account" hit = accounts that are between 6 mos and 2 years old, usually no notation.

Old accounts = accounts that opened more than 10 years from whenever they are reported.

All others = all others in between.

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Old accounts are considered 30+ years.... which is just baffling to me but I dont make the rules. I guess when we are all old and grey we can finally get to the 800+ club and wont have the energy to enjoy it! That must be their evil plan! :lol:

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  • 1 month later...

I was informed that if you have too many open accounts can hurt your FICO score. So is there a rule of thumb of how long you should keep the account open before you can close without hurting you?

I opened a credit line from dell and hp but decided to not use them due to their high APR. The dell account is 4 months old while my HP account is days old.

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I can't speak to installment account #'s...I haven't seen info on how those factor into the score, but the "target" range for revolving accounts is between two and four. That many credit cards, managed properly adds points to your score.

These accounts need to be used and paid each month. Your experience with Dell and HP show why the recommendations go to VISA, MC, Discover and AMEX. Those "all purpose" type revolving accounts are easier to use each month (which is an important consideration to lenders). You don't want to have accounts just to have them, that is indicative of risk, hence a deduction in the score. You need to have revolving accounts that you can use for items you would buy anyway. You probably wouldn't need to purchase a computer every month, so those two are pretty useless, unless they allow you to open up something else. Try a secured credit card and stay away from "specialty" accounts and department store cards.

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