09-17-2013 07:36 AM - edited 09-17-2013 07:45 AM
I've been doing a little reading and want to make sure I understand correctly what effect my AAoA has on my credit score, and what my two new credit card's effect will be.
I understand its 15% of your total score. Also I read that FICO always rounds down with credit history, and AAoA from 1 month to 23 months counts as 1 year credit history. That is correct, right?
So back in July I opened a new Discover and my TU was 725. Before I opened my brand new AMEX & Freedom cards, I checked myFICO TU/Equifax scores, both about 705/708ish.
I also have 8 various Federal student loan accounts averaging from 4mo to 2yr 4mo age. CK shows my Average Account Age is 1yr 1mo before I opened the two new CCs, so I'm sure I'll have like a 9-10mo Average Account age when the new accounts hit.
This shouldn't affect my score though because I'll still show 1 year AAoA right (I know I'll still get a temporary ding due to HPs and new accounts)? And I shouldn't expect to see a score increase due to AAoA increase until I cross to 24mo average age right?
Also does anyone know a ballpark scoring difference between a 1yr, 2yr etc. AAoA?
Several questions, but it seemed like good info and I couldn't really get a solid answer from searching.
09-17-2013 08:21 AM
CK only factors in open accounts. FICO factors in all accounts, open or closed, good or bad.
You can figure it out yourself. Go from the date opened of your accounts to the current date. Figure out the number of months for each one. Add all those up, convert to years and you will have it.
Yes, AAoA does round down.
As for scoring, not exactly sure when you move from one age bucket to the other. But, as with anything credit, your score will depend on your entire credit profile.
09-17-2013 11:14 AM - edited 09-17-2013 11:14 AM
Luckily for me anyway I don't have any closed accounts (I'm 22, just started building credit in the last couple years, so I haven't closed anything yet), so CK is accurate for now.
I mostly just kinda wonder what effect my bad AAoA has on my score. I have low utilization, no baddies, good payment history, decent total credit line. Really I would assume the only thing pulling my score down is my handful of HPs, new account dings, and AAoA. Makes me wonder what would happen when I cross into the next age bracket.