New credit accounts can be a blessing or a curse for your FICO score. While they make up 10% of the calculation, their impact varies. Frequent new accounts may signal risk, especially for those with short credit histories. Inquiries remain on your report for two years but only affect your score for 12 months. A new account can lower your average account age, hit your credit utilization ratio, and potentially drop your score. However, new credit can also enhance your credit mix and help rebuild payment histories. The key is to manage new credit wisely and avoid opening too many accounts too quickly.
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