Reply
Regular Contributor
nma851
Posts: 147
Registered: ‎04-23-2013
0

For those that DO NOT believe what happens to AAoA by opening NEW accounts

Since AAoA is QUITE important in FICO's scoring, I wanted to post my myFICO info to show what the 2 new accounts did to my AAoA.  My ONLY reasons for posting this are A) EDUCATE:  Those rebuilding, this temptation is VERY high.  Even for myself, I admit, I get the "itch" knowing my scores are what they are;  B) PROVE: Time is pretty much one of the few factors on our side - we may think "OH if I have 2 reporting, if I have 6 reporting I'll get up there even FASTER.  NOT THE CASE!  

 

Granted, we have many many many folks on here that educate us regularly and have a VAST array of knowledge, moreso than myself, but I want to show you al what happened in REAL TIME.  Here ya go:

 

DECEMBER 2013:

  1. You have an established credit history.

     

Your oldest account was opened:  18 Years, 2 Months ago

Average age of your accounts:  12 years, 9 Months

FICO High Achievers opened their oldest account 19 years ago, on average.
Most FICO High Achievers have an average age of accounts between 6 and 12 years.

 

**NOTICE HOW I WAS 9 MONTHS SHY OF BEING IN THE "HIGH ACHIEVER" GROUP IN BOTH CATEGORIES RELATED TO AAOA WHEN LOOKING AT THE CURRENT:

 

FEBRUARY 2014:

  1. You have an established credit history.

     

Your oldest account was opened:  18 Years, 2 Months ago

Average age of your accounts:  10 years, 3 months

FICO High Achievers opened their oldest account 19 years ago, on average.
Most FICO High Achievers have an average age of accounts between 6 and 12 years.

 

WHATTTTTT????   10 YEARS, 3 MONTHS???  

 

Now, I lost almost THREE (3) YEARS as a result of my 2 new accounts.  Granted, this will be different for everyone, however my point is to show, in real-time, exactly what opening multiple accounts WILL DO to your AAoA if you were thinking "OH a few months won't hurt" or "That extra account I was pre-approved for won't hurt too much & my score will be up in a few months again" or "I can live with the hit for the next 6 months".  THAT BEING SAID, LOSING THREE YEARS - DOESN'T EXACTLY LOOK LIKE A SWEET DEAL OR THE RIGHT WAY TO GO NOW DOES IT? 

 

As stated before, this is PURELY to help out those rebuliding and those who are thinking about opening multiple account QUICKLY.  PATIENCE PATIENCE PATIENCE - TAKE THE ADVICE & LEARN FROM ONE WHO HAS NOW LOST THREE YEARS FROM WHAT I DID.  THIS ISN'T NECESSARILY "WRONG" PER SE, AS WE ARE ALL FACTORED DIFFERENTLY, HOWEVER I CANNOT STATE IT ENOUGH THAT UNTIL I SAW IT, I REALLY DID NOT "BELIEVE" IT WOULD BE THIS MUCH!!!!

 

Hope this helps you all out there and have a GREAT START TO YOUR WEEKEND!!!! :smileyhappy: :smileyhappy:


C1 QS-REW: $4,000; C1 V-REW: $4,000; RING: $8,200; AZ REW: $3,000; FREEDOM: $3,400. SCORES: EX: 799; TU: 785, EQ: 790 - 09 JUL 14. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 ACROSS & IN THE GARDEN!
Valued Contributor
Repo-ed
Posts: 2,953
Registered: ‎02-09-2012
0

Re: For those that DO NOT believe what happens to AAoA by opening NEW accounts

Probably one of the (if not THE) most useful post I've seen on here.

 

Thanks

 

(and why I try to only app Amex cards - in hopes of avoiding this very issue)

Established Contributor
GFer
Posts: 984
Registered: ‎04-01-2008
0

Re: For those that DO NOT believe what happens to AAoA by opening NEW accounts

Great post and awesome of you to share this with others!



1/28/14 EQ 817, (6/30/14)EX 821, TU 817 on 6/13/2014

Take the myFICO Fitness Challenge
Established Contributor
ktl72455
Posts: 831
Registered: ‎12-09-2012
0

Re: For those that DO NOT believe what happens to AAoA by opening NEW accounts

WOW!!!!!!  That helps keep my itchy finger in the GARDEN soil!!!!

12/4/12 TU 589 MyFico ~EQ 579 MyFico ~EX 577(Fako)
1/15/14 TU 665 | EQ 648 | EX 655 ~Myfico scores
6/8/14 TU08 666 | EQ08 656 |EX08 655 } EQ04
My Wallet: Cap1 3,500K ~FH 950 Credit One 1000~Orchard Bank 2000~ Matrix 400 ~NFCU nRewards 18K~NFCU Cash Rewards signature| 5K
Last Negs to fall off: 2-Cap1 CO's PD (fall off 1/17)~Forclosure (fall off 1/16)
Senior Contributor
alvon123
Posts: 6,861
Registered: ‎09-24-2013
0

Re: For those that DO NOT believe what happens to AAoA by opening NEW accounts


GFer wrote:

Great post and awesome of you to share this with others!


+1 thanks for posting


Regular Contributor
nma851
Posts: 147
Registered: ‎04-23-2013
0

Re: For those that DO NOT believe what happens to AAoA by opening NEW accounts

You are ALL most very welcome but a thank you is not needed. 

 

We're all in this "together" per se & if I can do ONE thing that has helped another, then my mission was accomplished.  

 

As you see in my sig line, I'm back to being in the garden for some time due to what I did.  As FYI, the accounts I opened were to get rid of 2 sub-primes I have had and were NOT my oldest accounts by far.  Even if I leave them open, the cost/benefit means another 2 annual fees which, now that my scores have allowed for the GREAT unsecured accounts, I am only closing ONE.  I believe closing both would do even MORE harm to my ages of accounts so I'll get rid of the $100 AF card versus the $19 AF card.  

 

Remember, keep PIF'ing each month, always on time, and adhere to tending to your gardening.  By doing this, you WILL be able to "Reap Your Harvest" from your garden after 1-2 years, depending on your situation so that number is ALWAYS different for all of us, and my "Harvesting" resulted  in nothing BUT good.  Then we repeat the process while the newbies grow up to be harvested down the road.  As one poster said, the "itch" does come and it's HARDER to overcome - but we're always here to help each other regardless.  I do not judge, I have no right to judge - and I am GLAD that I am able to finally be where I am while further helping others.  

 

You'll be seeing me in the garden again;  I actually kinda like it there!!  I hope you all have a great weekend too & if I can help in any other way, or would like to see other info, just feel free to ask.  If I don't know/have the answer, I GUARANTEE someone will!!   

 

YOU WILL GET THERE!!!  


C1 QS-REW: $4,000; C1 V-REW: $4,000; RING: $8,200; AZ REW: $3,000; FREEDOM: $3,400. SCORES: EX: 799; TU: 785, EQ: 790 - 09 JUL 14. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 ACROSS & IN THE GARDEN!
Regular Contributor
nma851
Posts: 147
Registered: ‎04-23-2013
0

Re: For those that DO NOT believe what happens to AAoA by opening NEW accounts


Repo-ed wrote:

Probably one of the (if not THE) most useful post I've seen on here.

 

Thanks

 

(and why I try to only app Amex cards - in hopes of avoiding this very issue)


Thank you VERY much for the remarks Repo.  You have NO IDEA how much this means to me for being able to post something very helpful to us.  I've learned the hard way & now I ONLY use the "easy way".  I do not regret what I did (see my response to everyone) as it got me out of a $100 AF Sub-Prime, but now I'm back in the garden again from what I did.  That is fine though as I'm EXACTLY where I need/want to be.  Any more credit out there is 100% unnecessary for me!!!

 

Have a GREAT weekend & if I can show anything else to you (and others), just feel free to ask!!  Take care   :smileyhappy: :smileyhappy: :smileyhappy:


C1 QS-REW: $4,000; C1 V-REW: $4,000; RING: $8,200; AZ REW: $3,000; FREEDOM: $3,400. SCORES: EX: 799; TU: 785, EQ: 790 - 09 JUL 14. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 ACROSS & IN THE GARDEN!
Regular Contributor
nma851
Posts: 147
Registered: ‎04-23-2013
0

Re: For those that DO NOT believe what happens to AAoA by opening NEW accounts


ktl72455 wrote:

WOW!!!!!!  That helps keep my itchy finger in the GARDEN soil!!!!


If you DO get that itch, and more than likely you will as I do too, pop on here & we'll help you through.  If it wasn't for me stating I wanted to do another app to get another, i would have KILLED my AAoA versus this damage.  Print this off or save the post as a reminder :smileyhappy:  

 

You WILL GET THERE!!!!!   Congrats, as well, for getting this far too BTW :smileyhappy:


C1 QS-REW: $4,000; C1 V-REW: $4,000; RING: $8,200; AZ REW: $3,000; FREEDOM: $3,400. SCORES: EX: 799; TU: 785, EQ: 790 - 09 JUL 14. STARTING: EX 635 TU 629 EQ 630 - 19 Oct 2012. GOAL: 800 ACROSS & IN THE GARDEN!
Regular Contributor
jojomomma
Posts: 113
Registered: ‎01-11-2013
0

Re: For those that DO NOT believe what happens to AAoA by opening NEW accounts

Great post, I think it would be an awesome post to share in Credit Cards and Credit Approvals as well......

11/2011 FICO ....TU 672 .................EQ 654................. EX 649

Current FICO; ... TU 726 (9/9/14), .. EQ 723 (8/1/14) .. EX 719 (8/1/14)

Cap1 4800, Discover 5200, WM Discover 3,800, Home Dpt 500, VS 500
New Contributor
acleynes
Posts: 66
Registered: ‎10-30-2011
0

Re: For those that DO NOT believe what happens to AAoA by opening NEW accounts

I saw on another thread someone list that he had 40 credit card lines open and I think he only has 2-3 years worth of credit history.  Granted, virtually all his credit cards are store cards and/or subprime cards with balance limits under $1,000.

 

10 years from now, if he kept all those credit lines open, he could app every month and his AAoA will barely budge...

 

I am afraid of having so many open credit lines though.  Asides from trying to remember all the due dates and the hassle of remembering all the login info and passwords, I am afraid the banks will potentailly deem me high risk for having so many open credit lines/possibly over extedning myself.

 

It is my personal opinion that your available credit limits never exceed your annual gross income as a safe measure so you don't dig yourself into a hole you can't dig yourself out of.


Starting Score: TU 749 02/02/2014
Current Score: TU 749 02/02/2014
Goal Score: 850



myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+