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AAOA high despite recent approvals

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savingmoney87
Regular Contributor

AAOA high despite recent approvals

So, I'm a little concerned. I thought my AAOA would take a big hit with new 7 accounts (1 auto, 1 mortgage, 1 PLOC, 4 CC)  in 2015. They've hardly budged. Really I went from 6 years to 5 years 7 months on TU and 5 yrs 8 months on EX, EQ. I have a lot of accounts a total 35. In Jan-March 2016 I expect all my baddies to fall off about 10 accounts. Once they fall off, I expect my AAOA to reduce down to about 4 years EX & EQ, 3 years 9 months TU.  

 

What's really helping my score is all installments I've had. Ill expect those closed but good standing accounts to fall off one by one from between 2017-2019. By then my other accounts would have matured. But I'm just amazed by the idea accounts that are negative are actuallly helping me out AAOA wise. 

 

What got me was the # of inquiries but once they age in about 6-12 months, I know that won't matter. Current Scores: EQ 675, TU 662, EX 674. I'm hoping once all the accounts fall off I'll see a good increase but the AAOA small drop threw me for a loop.

 

Anyhoo, I'd appreciate any thoughts or comments on this subject. 





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Message 1 of 8
7 REPLIES 7
Thomas_Thumb
Senior Contributor

Re: AAOA high despite recent approvals

If you have not used your new CCs, they may be invisible to the AAoA calculation. Once used, they will report and factor into the AAoA.

 

Really, no need to focus on AAoA. - its all about the baddies. Nonetheless, saying no to further new credit at this time might be prudent.

 

FYI - Inquiries stop factoring into score after 12 months even though they show on your report for 2 years.

 

 

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 2 of 8
savingmoney87
Regular Contributor

Re: AAOA high despite recent approvals

Thomas_Thumb wrote:

If you have not used your new CCs, they may be invisible to the AAoA calculation. Once used, they will report and factor into the AAoA. Wow, you learn something new everyday. So you are saying the new CC's at least, if they reported but have never showed a balance (or whatever makes them invisible) they might not be reflected in my AAOA? Utilization wise is nothing since sually pay everything in full before the statement cuts and let 1 rotating card report every month. This maybe a new trick, to keep my AAOA up in the long run.

 

Really, no need to focus on AAoA. - its all about the baddies. Nonetheless, saying no to further new credit at this time might be prudent. Im in the garden for a while... I'm actually not worried too much because the only thing I can do is wait patiently until the baddies fall off; however, I just found the AAOA quite odd with the new approvals. I started actually calculating to see why it was so high on my report then I realized it would significantly drop once they all fall off. 

 

FYI - Inquiries stop factoring into score after 12 months even though they show on your report for 2 years. I was under the impression that as inquiries age, 6 months they have less impact on your score and after 12 months they dont factor in at all. 

 

 

 


 





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Message 3 of 8
Thomas_Thumb
Senior Contributor

Re: AAOA high despite recent approvals


@savingmoney87 wrote:

 

Really, no need to focus on AAoA. - its all about the baddies. Nonetheless, saying no to further new credit at this time might be prudent. Im in the garden for a while... I'm actually not worried too much because the only thing I can do is wait patiently until the baddies fall off; however, I just found the AAOA quite odd with the new approvals. I started actually calculating to see why it was so high on my report then I realized it would significantly drop once they all fall off. 

 

FYI - Inquiries stop factoring into score after 12 months even though they show on your report for 2 years. I was under the impression that as inquiries age, 6 months they have less impact on your score and after 12 months they dont factor in at all. 

 

 


 


I believe that both 6 month and 12 months could be thresholds for inquiries. I tend to just focus on the 12 month time frame because that is the "end game". for score impact.

 

My EQ Fico 4 score jumped from 796 to 809 after my lone inquiry reached 12 months (inquiry was not on TU or EX reports). TU and EX scores stayed constant at 823 and 830, respectively (no inquiry, no impact). - Profile stable, inquiry factor isolated.

 

@I did also experience an EQ score boost from 777 to 796 that could have related to crossing the six month threshold. (Purchased EQ ScorePower two months after lone inquiry posted and again- 8 months after inquiry). During this timeframe my UT% was stable at 1 % to 3%. # cards reporting balance @ 777 = 3, # cards reporting balance @ 796 = 4.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 4 of 8
Revelate
Moderator Emeritus

Re: AAOA high despite recent approvals

My own data suggests there's no fading of inquiries at 6 months.  Tradelines hitting six months though is a long held theory of being the major seasoning boundary for new accounts.

 

A card which reports $0 is still active for FICO purposes; it's when the tradeline stops reporting for an extended period that it can be flagged as inactive.  

 

Not sure what the question was in the original post, but all my AAOA changes have been single digit numbers score wise.




        
Message 5 of 8
Thomas_Thumb
Senior Contributor

Re: AAOA high despite recent approvals

Revelate,

 

The OPs initial question was why AAoA did not drop significantly after opening up 7 new accounts (1 auto, 1 mortgage, 1 PLOC, 4 CC)  in 2015. The topic of inquiries was an extension associated with new accounts.

 

The hard inquiry data was from a a CLI on a 3 year old card - so not a new tradeline. No other events other than the inquiry going from 2 months to 8 months age (6 month boundry crossed) to point to as a catalyst for the EQ 04 increase from 777 to 796 on EQ 04.

 

I have wondered if the Fico 4 model (EQ anyway) is abnormally skittish toward inquiries with my profile - 3 HPs in the last 7 years. Inquiries appear to have a small impact on "active" borrowers by comparison. I am tempted to ask for a CLI on my FIA Signature card (they do a HP) just to verify impact on Fico 4 score with my profile.

Fico 9: .......EQ 850 TU 850 EX 850
Fico 8: .......EQ 850 TU 850 EX 850
Fico 4 .....:. EQ 809 TU 823 EX 830 EX Fico 98: 842
Fico 8 BC:. EQ 892 TU 900 EX 900
Fico 8 AU:. EQ 887 TU 897 EX 899
Fico 4 BC:. EQ 826 TU 858, EX Fico 98 BC: 870
Fico 4 AU:. EQ 831 TU 872, EX Fico 98 AU: 861
VS 3.0:...... EQ 835 TU 835 EX 835
CBIS: ........EQ LN Auto 940 EQ LN Home 870 TU Auto 902 TU Home 950
Message 6 of 8
Revelate
Moderator Emeritus

Re: AAOA high despite recent approvals


@Thomas_Thumb wrote:

Revelate,

 

The OPs initial question was why AAoA did not drop significantly after opening up 7 new accounts (1 auto, 1 mortgage, 1 PLOC, 4 CC)  in 2015. The topic of inquiries was an extension associated with new accounts.

 

The hard inquiry data was from a a CLI on a 3 year old card - so not a new tradeline. No other events other than the inquiry going from 2 months to 8 months age (6 month boundry crossed) to point to as a catalyst for the EQ 04 increase from 777 to 796 on EQ 04.

 

I have wondered if the Fico 4 model (EQ anyway) is abnormally skittish toward inquiries with my profile - 3 HPs in the last 7 years. Inquiries appear to have a small impact on "active" borrowers by comparison. I am tempted to ask for a CLI on my FIA Signature card (they do a HP) just to verify impact on Fico 4 score with my profile.


Ah well AAOA is just math, and with 35 reporting accounts there's not going to be much dip when someone abuses their report heh.  I.e I only had 17 tradelines, added 4, dropped 6 months.  OP is pretty much double my count so it's not surprising that his meter didn't move much.  More accounts = more AAOA buffer, which is really the only "reason" to have a slew of accounts in the FICO model.  AAOA is a minor piece of the algorithm though as one can hit 760+ with under 2 years AAOA in a FICO 8 model which is why I don't suggest running out and opening a bunch of random dead capital tradelines just for that.

 

Regarding your own inquiry experience, inquiries are instant in time like revolving utilization, it appears based on my and other's data, sum up the number of inquiries in the last year and calculate off a step function in that not every inquiry is going to drop your score (I just took several in my spree, and EQ FICO 8 didn't move with 2 inquiries in a row and I was at pretty low counts previously... need to dig into that sometime).  

 

The likely reason the active people don't take much of a hit compared to you is two fold:

  1. Inquiry damage has diminishing returns like every other negative, so the more you have, the less any individual inquiry counts against you.  That holds even on the step function 
  2. Your score is so godlike compared to many people's, that any "negative" will hit you harder than it will say me with my dirty file.  If you got a brand spanking new tax lien for example you'd probably tumble on the order of 120-150 points; OTOH I'd drop maybe 50 on a FICO 8 model and my FICO 04's wouldn't move much at all... I still have my Cali tax lien on my record but other PR's and collections appear to work similarly.

Grin re: CLI request to test things!  FIA will hit TU which is one of the tougher ones to bracket scores on other than 2 1B TU reports I guess.




        
Message 7 of 8
savingmoney87
Regular Contributor

Re: AAOA high despite recent approvals


@Revelate wrote:

@Thomas_Thumb wrote:

Revelate,

 

The OPs initial question was why AAoA did not drop significantly after opening up 7 new accounts (1 auto, 1 mortgage, 1 PLOC, 4 CC)  in 2015. The topic of inquiries was an extension associated with new accounts.

 

The hard inquiry data was from a a CLI on a 3 year old card - so not a new tradeline. No other events other than the inquiry going from 2 months to 8 months age (6 month boundry crossed) to point to as a catalyst for the EQ 04 increase from 777 to 796 on EQ 04.

 

I have wondered if the Fico 4 model (EQ anyway) is abnormally skittish toward inquiries with my profile - 3 HPs in the last 7 years. Inquiries appear to have a small impact on "active" borrowers by comparison. I am tempted to ask for a CLI on my FIA Signature card (they do a HP) just to verify impact on Fico 4 score with my profile.


Ah well AAOA is just math, and with 35 reporting accounts there's not going to be much dip when someone abuses their report heh.  I.e I only had 17 tradelines, added 4, dropped 6 months.  OP is pretty much double my count so it's not surprising that his meter didn't move much.  More accounts = more AAOA buffer, which is really the only "reason" to have a slew of accounts in the FICO model.  AAOA is a minor piece of the algorithm though as one can hit 760+ with under 2 years AAOA in a FICO 8 model which is why I don't suggest running out and opening a bunch of random dead capital tradelines just for that.

 

Regarding your own inquiry experience, inquiries are instant in time like revolving utilization, it appears based on my and other's data, sum up the number of inquiries in the last year and calculate off a step function in that not every inquiry is going to drop your score (I just took several in my spree, and EQ FICO 8 didn't move with 2 inquiries in a row and I was at pretty low counts previously... need to dig into that sometime).  

 

The likely reason the active people don't take much of a hit compared to you is two fold:

  1. Inquiry damage has diminishing returns like every other negative, so the more you have, the less any individual inquiry counts against you.  That holds even on the step function 
  2. Your score is so godlike compared to many people's, that any "negative" will hit you harder than it will say me with my dirty file.  If you got a brand spanking new tax lien for example you'd probably tumble on the order of 120-150 points; OTOH I'd drop maybe 50 on a FICO 8 model and my FICO 04's wouldn't move much at all... I still have my Cali tax lien on my record but other PR's and collections appear to work similarly.

Grin re: CLI request to test things!  FIA will hit TU which is one of the tougher ones to bracket scores on other than 2 1B TU reports I guess.


I have seen so many profiles on here with people with less then 2 years AAOA and very high scores. I'm excited to see what my scores would be when the baddies fall off in a couple of months. Considering I've been squeaky clean; except, my "2015 run-away train called a spree."Smiley Very Happy If I even see 720+ I'm going to turn into one of those people the moderators come get... like why are you posting in each fourm? Thank you for your detailed post, I learned a lot. 





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