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Regular Contributor
JMMD
Posts: 225
Registered: ‎05-12-2013
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AAoA how long does this affect score?

We filed BK in 2011 and were discharged in Feb 2012. Since then we have obtained 5 CC, with the last being opened this month. How long before AAoA isn't an issue for these cards? We are hoping to buy a house in the spring, will all these new tradelines be an issue?

Rebuilding after BK-discharged Feb 2012. In the garden until June 2015
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Revelate
Posts: 9,645
Registered: ‎12-30-2011
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Re: AAoA how long does this affect score?

[ Edited ]

JMMD wrote:

We filed BK in 2011 and were discharged in Feb 2012. Since then we have obtained 5 CC, with the last being opened this month. How long before AAoA isn't an issue for these cards? We are hoping to buy a house in the spring, will all these new tradelines be an issue?


AAoA is a factor regardless of how old the cards or other tradelines are.  There's not much one can do about it other than let accounts age in this case (as in most cases, Amex backdating notwithstanding), and not opening frivolous accounts.

 

Hard to say from a lender underwriting perspective as it will vary by lender, there's some breakpoint around the six month mark on tradelines where I suspect they won't raise many eyebrows, but in general this is a pretty easy thing to explain away: you wanted to re-establish positive history after a BK, which is not only the right thing to do, but also expected as well.  I don't think it'll be much issue, the BK is the elephant in the living room, if you get past that and you clear the middle FICO score hurdle, the rest is probably gravy honestly.

Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 04 673, EQ 8 707, TU 720, EX 702* (09/02/14, EX older)
Goal Score: 700 on EQ '04 (01/01/15)


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Regular Contributor
JMMD
Posts: 225
Registered: ‎05-12-2013
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Re: AAoA how long does this affect score?


Revelate wrote:

JMMD wrote:

We filed BK in 2011 and were discharged in Feb 2012. Since then we have obtained 5 CC, with the last being opened this month. How long before AAoA isn't an issue for these cards? We are hoping to buy a house in the spring, will all these new tradelines be an issue?


AAoA is a factor regardless of how old the cards or other tradelines are.  There's not much one can do about it other than let accounts age in this case (as in most cases, Amex backdating notwithstanding), and not opening frivolous accounts.

 

Hard to say from a lender underwriting perspective as it will vary by lender, there's some breakpoint around the six month mark on tradelines where I suspect they won't raise many eyebrows, but in general this is a pretty easy thing to explain away: you wanted to re-establish positive history after a BK, which is not only the right thing to do, but also expected as well.  I don't think it'll be much issue, the BK is the elephant in the living room, if you get past that and you clear the middle FICO score hurdle, the rest is probably gravy honestly.


Thank you. Very encouraging!

Rebuilding after BK-discharged Feb 2012. In the garden until June 2015
Valued Contributor
takeshi74
Posts: 3,042
Registered: ‎06-05-2013
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Re: AAoA how long does this affect score?

[ Edited ]
JMMD wrote:

How long before AAoA isn't an issue for these cards?


This question and the subject are a bit misleading.  As mentioned above, AAoA is always a concern.  Your actual question is "How long before new accounts aren't an issue?".  Revelate also pointed out that it varies by lender but, just for clarification, definitely check in with your lender.

Regular Contributor
JMMD
Posts: 225
Registered: ‎05-12-2013
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Re: AAoA how long does this affect score?


takeshi74 wrote:
JMMD wrote:

How long before AAoA isn't an issue for these cards?


This question and the subject are a bit misleading.  As mentioned above, AAoA is always a concern.  Your actual question is "How long before new accounts aren't an issue?".  Revelate also pointed out that it varies by lender but, just for clarification, definitely check in with your lender.


Thank you!

Rebuilding after BK-discharged Feb 2012. In the garden until June 2015
Mega Contributor
RobertEG
Posts: 18,211
Registered: ‎03-19-2007
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Re: AAoA how long does this affect score?

Were the old accounts that were included in the BK discharge still showing in your CR?

 

Regular Contributor
JMMD
Posts: 225
Registered: ‎05-12-2013
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Re: AAoA how long does this affect score?


RobertEG wrote:

Were the old accounts that were included in the BK discharge still showing in your CR?

 


Yes, the accounts are still there but it lists no activity under them and just says soemthing like included in ch. 7 BK.

Rebuilding after BK-discharged Feb 2012. In the garden until June 2015
Established Member
surgemorales
Posts: 45
Registered: ‎10-14-2013
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Re: AAoA how long does this affect score?

Pardon my ignore what is AAoA ?

I currently in the process of rebuilding my credit. Experian has me at 740 and I've had a WF $500 secured card for about 2 years. I just recently got Macy $300 - Walmart $200 - Bank of America $500 (secured) - Chase Freedom $1K - Kohls $300 - JCrew $300 - Barclaycard - 1K - Buckle $300 - Sears Mastercard $400 - BestBuy Mastercard $400 - Guess I am gardening since Dec 31, 2013 for at least 6 months. Im screwed up during the holidays and acquired 6 new credit cards. Its so difficult!
Valued Contributor
FinStar
Posts: 6,633
Registered: ‎10-21-2012
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Re: AAoA how long does this affect score?

AAoA = Average Age of Account


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