Understanding FICO® Scoring

[Nick777]

I am aware that the average age of your accounts is a factor in your credit score. However, what type accounts are included in this average age, specifically: Are all credit card accounts included or are there some cards which are excluded? Are mortgages, student, auto or other installment loans included? Are closed accounts of any type included, or just open accounts? I'm managing my mother's accounts, and she has 11 CC and numerous other accounts. It appears that cancelling some of the new CCs would increase the average age of the CC accounts, but I don't know if anything else gets factored in. Any help is appreciated. Thanks!

[Tuscani]

All TLs count against age. Don't cancel accounts unless they are costing you money.

Message Edited by Tuscani on 06-01-2007 03:47 PM

[Nick777]

Just to clarify - even closed TLs count against age; therefore it does not matter whether a TL is open or closed when age is calculated?

[masdeocho]

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Nick777 wrote:
Just to clarify - even closed TLs count against age; therefore it does not matter whether a TL is open or closed when age is calculated?

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If the score was calculated on the very day that a TL was closed -- then no, it wouldn't matter.  But it's unlikely that will happen.

Age is your friend. The score takes into account the age of the oldest TL -- so you don't want to close your very first CC.  It also takes into account the average age of all accounts -- so you don't want to close a bunch of accounts.

[MidnightVoice]

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Nick777 wrote:
Just to clarify - even closed TLs count against age; therefore it does not matter whether a TL is open or closed when age is calculated?

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According to EX, that does not appear to be the case.  There seem to be two measurements - when the first account was opened is one.  But they seem to be using my active TLs to calculate the length of my credit history.  Hence the one active card that does not report to them (out of 4) makes a huge difference to the average.  Whereas that one card out of all my cards would have no impact on the average age.

I might be confused here, but that is what the averages say

Message Edited by MidnightVoice on 06-01-2007 04:36 PM

[Tuscani]

As far as age is concerned... only open TLs count.. Util, payment history, ect. still count on closed TL, however.

[ilovepizza]

Question. If I have 1 credit card from 9 years ago that was open for 2 months, does that add 2 months in to average age or 9 years?

[fused]

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Tuscani wrote:

As far as age is concerned... only open TLs count.. Util, payment history, ect. still count on closed TL, however.

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I have to disagree with you on this one! I have an old, closed AU TL reporting on EQ and TU and they have done two things: significantly raised my credit length history and average-age of my accounts. EX does not report this TL so my credit length history and average-age of accounts is much shorter and my score seems to reflect this.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=4402

Message Edited by fused111 on 08-28-2007 08:53 AM

[smallfry]

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fused111 wrote:

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Tuscani wrote:

As far as age is concerned... only open TLs count.. Util, payment history, ect. still count on closed TL, however.

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I have to disagree with you on this one! I have an old, closed AU TL reporting on EQ and TU and they have done two things: significantly raised my credit length history and average-age of my accounts. EX does not report this TL so my credit length history and average-age of accounts is much shorter and my score seems to reflect this.

http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=4402

Message Edited by fused111 on 08-28-2007 08:53 AM

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Right you are fused.

[ilovepizza]

Duplicate / deleted. I keep hitting reply instead of edit. Sorry.

Message Edited by ilovepizza on 08-28-2007 02:19 PM