Reply
Frequent Contributor
Posts: 283
Registered: ‎12-16-2011
0

Average Account Age vs Charge Off

[ Edited ]

My AAoA is 2 years and my longest standing account is an electric bill that was charged off 7-2006. This account was opened In 2000 and is 12 years old. I have several new accounts and when the CO falls off, my AAoA will still be about 2 years because the newer accounts will have aged and my oldest account will be about 6 years old.

 

My question is. Will my score go up any after the CO falls off? Every other aspect of my credit profile will be clean. I have two installments open that are always paid on time and are 11 months old at this time and a total of 7 credit cards with $32000 credit line and I keep only one card showing a balance of less than 4%. I have 5 closed accounts that are all in good standing and then the 1 CO that will supposedly fall off 11-2013. The CO has never shown up in collections on my FICO reports.

 

Sorry if I am redundant but I guess my question is, Will the CO falling off help my credit score much?

 

Thank a lot

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Epic Contributor
Posts: 21,230
Registered: ‎03-19-2007
0

Re: Average Account Age vs Charge Off

Kinda confused about the "fall-off" ...

 

When the charge-off reaches 7 yrs + 180 days from its DOFD, it will be excluded from your CR, but that wont result in the account itself being removed unless the creditor deletes the entire account.  Thus, I dont see a drop in AAoA as a result ot CR exclusion of the CO.

 

If the CO is your only remaining major derog, then your file will move into a clean scoring categorization, and thus I would expect a good score boost.

 

Frequent Contributor
Posts: 283
Registered: ‎12-16-2011
0

Re: Average Account Age vs Charge Off

Thank you for the info. May I ask why some things fall off after 7 years and why some fall off in 7 years and 180 days? I had a foreclosure fall off after 7 years.

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Epic Contributor
Posts: 21,230
Registered: ‎03-19-2007
0

Re: Average Account Age vs Charge Off

[ Edited ]

FCRA 605(a) requires any adverse item of information to be excluded at certain times.  It lists specific items with their own indvidual periods, and groups any other adverse item into its own period.

The 7 years plus 180 day period from DOFD, as provided in sections 605(a)(4) (and as clarified by section 605(c)), applies only to collections and charge-offs.

 

Section 605(a)(5) is the catch-all subsection which encompasses "any other adverse item of information" not listed in one of the other subsections.  The period for all the catch-all items is 7 years from their date of occurence.  Monthly account delinquencies are the most common "catch-all" adverse item, but any other unspecfied item is included.

Frequent Contributor
Posts: 283
Registered: ‎12-16-2011
0

Re: Average Account Age vs Charge Off

Thank you for the educated information RobertEG.

Equifax FICO 781, Transunion FICO 821, Experian FICO 807,

810 goal on all three by 3-1-2015
Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.