Account age and FICO scoring....

[Anonymous]

I have two student loans that will be a 1 year old in September will I see an increase in score? I know part of the scoring algorythm takes in to consideration account age. How does this really work? I'm thinking if that's the case we should all see an increase evry single month as our accounts age but I'm sure it's more complicated than that. Anyone.....

[Anonymous]

Fico doesn't count months, only full years. So your age doesn't improve every month. It would improve only on your annual anniversary dates. All open and closed accounts are inluded in your average age. An account aging one year may only help your fico score if you have a very low average age.

[Anonymous]

---

@Anonymous wrote:
Fico doesn't count months, only full years. So your age doesn't improve every month. It would improve only on your annual anniversary dates. All open and closed accounts are inluded in your average age. An account aging one year may only help your fico score if you have a very low average age.

---

+1

FICO rounds down the AAoA years.  If you have AAoA of 2 years 11 months, FICO sees 2 years.

[Anonymous]

I had been wondering about this becasue my EQ report has the average age of accounts at 3 years and 12 months. Why couldn't it just show 4 years? It also shows the oldest account being the child support I pay, as opened in 99'. I thought child support "accounts" were not included in the calcualtion?

[RobertEG]

Lenght of credit history is only 15% of FICO scoring, of which that 15% is affected by both AAoA and date of oldest account.  So this further dilutes AAoA as a single factor to less than 15% impact on FICO.

No one knows that actual FICO algorithm for how they score increased AAoA over time, but it is clearly a very slow process.  Assuming the score increase was linear (which it probably is not), this would only be a couple of points a year per account.  I would not expect much.