TU - no derogs, no public records, 2 good but closed installment tradelines and 2 inquiries. The ONLY change was the addition of a new revolving acct. Payment $15, balance $49. Why would the addition of this one trade-line cause the score to drop by 40 pts?
for one...your time of established credit will drop because you know have a BRAND new account in the avg and since you only have 3 it seems, that could drive the score down. But dont sweat it..it will move back up as the months pass.
You want to have a long history of "paid as agreed" on revolving accounts. Now you have one to start establishing this on, but it will take time.
I agree. Two of the factors are length of history (the average history), which you have just lowered by adding a new card. Also, I believe that the number of new accounts factors in somewhere. But you will see an increase as the accounts age. That's why it's a good idea to keep revolving accounts open, even if you pay some fees, until you get a more established history. In other words, if you get another (better) account, don't close this one. Just use it for minimal purchases every few months to keep it active so it will count as your longest card on length of history.
