Understanding FICO® Scoring

[To-Be-Continued]

What does Fico see as the optimal average age of accounts? '

-TBC

[llecs]

My FICO report says 6 to 12 years in terms of high achievers. My EQ shows an AAoA as 3 years and is listed as a positive and TU lists as a negative, but that's based off my buckets on both reports.

[To-Be-Continued]

I'm trying to figure out what kind of a hit I'm going to take when the new CC hits my reports bringing my AAOA  down to 4.8 years.

-TBC

[MarineVietVet]

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To-Be-Continued wrote:

I'm trying to figure out what kind of a hit I'm going to take when the new CC hits my reports bringing my AAOA  down to 4.8 years.

-TBC

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Since FICO rounds down AAoA for scoring as long as your old AAoA was also less than 5 years you won't be hurt at all.

Do you know what the old AAoA happened to be?

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[To-Be-Continued]

5.6 years over 6 accounts.

[MarineVietVet]

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To-Be-Continued wrote:

5.6 years over 6 accounts.

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Then you'll lose a year of AAoA unfortunately.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[CS800]

I've been meaning to ask a question about AAoA but always forget.

If I get a card today, will it be counted as 1 year or 0 year? I'm assuming 0 until the next year when it turns one.

[pizzadude]

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CS800 wrote:

I've been meaning to ask a question about AAoA but always forget.

If I get a card today, will it be counted as 1 year or 0 year? I'm assuming 0 until the next year when it turns one.

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I think that is correct, if it reported soon after your first statement it would be 1 month old.....  0 years, 1 month....

[MarineVietVet]

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pizzadude wrote:

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CS800 wrote:

I've been meaning to ask a question about AAoA but always forget.

If I get a card today, will it be counted as 1 year or 0 year? I'm assuming 0 until the next year when it turns one.

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I think that is correct, if it reported soon after your first statement it would be 1 month old.....  0 years, 1 month....

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I agree with this. Each individual account is counted month to month but AAoA itself can never be younger than 1 year. Does that make sense?

I recently posted about this. Someone had asked if it's possible to have an AAoA of zero and I found out that the brains behind the formulas were careful so that AAoA is always at least one year. So theoretically you could have one new account just one month old but your AAoA would be one year.

Have I confused everyone?

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[To-Be-Continued]

So in 4 months my AAOA should be back to 5 years? Or do I have to wait until it hits one year? I will also post what if any point hit I take when it reports next month.

-TBC