What is worse? Low AAoA or CO with zero balance

[missfontella]

I debated whether I should put this in the rebuilding forum or here. I chose here because I am looking for answers that direct relate to applying for a mortgage in the near future.

My AAoA is 4.1. That includes my IIB accounts that report a zero balance (6 to 9 depending on CRA). A couple of the credit cards that I IIB no longer exist. My question is, for the purpose of obtaining a home loan, should I be more concerned with preserving my AAoA or removing the COs. The way I figure it, I can try to GW them all, GW a couple, or leave it alone. Which one will help me the most in underwriting?

more info: bk was ch 13 and discharged in may 2012. Scores are current in the siggy and I just paid down some heavy uti, waiting for it to report. With all IIB accounts removed, my AAoA becomes 3.4 to 3.6. And I already know that the ch13 is an uphill battle, which why I trying to make myself more appealing. Any input is appreciated.

[MovingForward_2012]

I would think the fico algorithm for calculating your scores would negatively weight the bad items over the good items. What that means is you should try to get the CO's removed.

[Swapmeet]

I am no expert, admittedly, but I think an AAoA of 3.5 years would be better than having a couple COs reporting. So, basically +1 on the above post.

[JM-AM]

Agreed removing the CO's would help much more then AAOA.

[tooleman694]

My AAoA just went from 4 to 5 years. I had a massive score increase of 1 point.

So I disagree.

yes im kidding.

Not kidding about the score increase though, that actually did happen.

[MovingForward_2012]

I think the CO's hurt your score more in the long run. You want replace old baddies with new lines of credit as soon as possible so your AAOA is as consistent as possible.

An example: your COs probably equate to -50 pts, when your AAOA gives you +20 pts. When you remove the baddies, you net 30 pts. The points aren't real, just an example.

When you have an AAOA of 7 years or more, that is when you get a nice boost in scores. And then going below that threshold will impact you more than the COs but right now, I believe your charge offs are having a bigger impact.

[missfontella]

Thanks guys. I guess I will get to GWing. I would dispute but I don't think it is a good idea right before a mortgage app.

[Swapmeet]

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@missfontella wrote:

Thanks guys. I guess I will get to GWing. I would dispute but I don't think it is a good idea right before a mortgage app.

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I agree with this statement, FWIW. I am also in the mortgage process (just submitted app a few days ago), and I am concerned that they are going to take issue with my two CC accounts that I opened in Nov. I have read in several spots that one should not apply for a card within around six months of a mortgage app. I have also read that in a lot of cases (mostly FHA), lenders do not want to see any accounts in dispute and calling CRAs and asking them to remove remarks about the consumer's dispute...etc is a : PITA.