yes they do mature. For any new account, I belive there is a FICO penalization for the new account plus the inquiry, regardless of AAoA. You also take a hit if AAoA has droped a year (FICO rounds the months of all acounts divided by the total down to the nearest year, so it might be the same or could have dropped to a lower year). Also, utilization is scored, although this is a much more insignificant factor than revloving utilization and isn't something to worry about.
EX:694 TU:744 EQ:777
@DaveSignal wrote:yes they do mature. For any new account, I belive there is a FICO penalization for the new account plus the inquiry, regardless of AAoA. You also take a hit if AAoA has droped a year (FICO rounds the months of all acounts divided by the total down to the nearest year, so it might be the same or could have dropped to a lower year). Also, utilization is scored, although this is a much more insignificant factor than revloving utilization and isn't something to worry about.
I never see a penalty for a new account unless it drops me below an AAOA threshold.
This has held true over my last two app sprees. I haven't seen anything but pure conjecture without any data to support the concept of a "new account penalty" outside of the inquiry / AAOA change, unless it's on the order of 2 years without opening an account as very few members have reached that gardening point while tracking their scores zealously.
@Revelate wrote:
@DaveSignal wrote:yes they do mature. For any new account, I belive there is a FICO penalization for the new account plus the inquiry, regardless of AAoA. You also take a hit if AAoA has droped a year (FICO rounds the months of all acounts divided by the total down to the nearest year, so it might be the same or could have dropped to a lower year). Also, utilization is scored, although this is a much more insignificant factor than revloving utilization and isn't something to worry about.
I never see a penalty for a new account unless it drops me below an AAOA threshold.
This has held true over my last two app sprees. I haven't seen anything but pure conjecture without any data to support the concept of a "new account penalty" outside of the inquiry / AAOA change, unless it's on the order of 2 years without opening an account as very few members have reached that gardening point while tracking their scores zealously.
Possibly it's an inquiry penalty only, but here is some recent data...
Date FICO scores (EX, TU, EQ) Credit Report Acttivity
Nov 13 716, 711, 714
Dec 13 707, 691, 708 Last open installment is reported paid and closed on all 3 CRAs.
April 14 706, 756, 717
May 14 674, 745, 705 Multiple new accounts including new installment, AAoA did not change
hmmm, so is this why my student loan gave me a 4pt boost(owe around $2,500) when it reported for the month and my auto loan($15k) is barely moving the needle? I got maybe a 10pt boost max over the past year and half and the only thing I was paying was auto loan because student loan was deferred during that time. I'll just have to double up on prinipal only payments and see if I get a boost now.
@CreditDunce wrote:
@bdhu2001 wrote:Does anyone have any idea of when the installment loan looks better. Is it when it reaches 70% instead of 80% etc. Many people use FHA and have over 95% principal balance. I know that at 80% there's a boost for those loans. Do you know when there's a boost for people who start at 80%?
I think all installment loans start at 100%. You may have put down 20%, but on your credit report, it just shows the high balance and current balance.
I don't know if there are break points that will boost your score or not. It may be a linear thing. Or it could be different based on different profiles.
If the remaining balance on an installment loan does matter, it's almost certainly breakpoints as I can't think of anything in the algorithm which isn't designed that way honestly.
Might be able to dig out if there's a bit in the reason codes on it (remaining balance on installment lines is too high or some such) which would point towards it's being graded somehow... though a brand spanking new installment loan didn't move my meter at all so it doesn't sound like there's a straight penalty, and it'd be hard to diagnose whether it's a balance remaining or a tradeline seasoning breakpoint in the data. Just hard to determine anecdotally 
.