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Contributor
Posts: 75
Registered: ‎04-03-2012
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Does FICO increase when an account ages to one full year?????

I am under the impression that FICO scores a new account as ONE year from 1 month to 23 months.  That at the 24th month, you are rewarded b/c the account is now scored as TWO years old.  Therefore, although a new account hits the one year anniversary (12 months old), it doesn't matter with regards to FICO.

 

Thoughts?!?

Established Contributor
Posts: 599
Registered: ‎03-10-2012
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Re: Does FICO increase when an account ages to one full year?????

i think you are confusing account age with AAoA.

 

individual accounts are a year old when they are 12 months from the month its reported as open. AAoA, even when its only at 1-11 months, in the fico scoring it's never less than a year. An individual card may see the "new account ding" gradually wear off within the first 3 months, some more at 6 months, and at 12 months no longer considered "new".

 

This is separate from the impact of the inquiry associated with applying for it having less affect at 6 months(no guarantee), and no effect at 12 months(on score at least)

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Contributor
Posts: 75
Registered: ‎04-03-2012
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Re: Does FICO increase when an account ages to one full year?????

So.....

 

You take a FICO drop when you open a "new" CC account for:

 

1) HARD PULL INQUIRY

2)  AAoA decrease

3) New account "ding"

 

Is that correct?  You get "dinged" 3 times for opening a new CC account?

 

1) The new account "ding" lasts up to one year from the opening date.

 

2) The HARD PULL "ding" lasts up to one year from the opening date?

 

3)  Your AAoA for this new account will only factor in ONE year for a total of 23 months?

 

Am I correct?!?

 

Thanks

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
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Re: Does FICO increase when an account ages to one full year?????


I_SUFFER_FROM_FICO_ENVY wrote:

So.....

 

You take a FICO drop when you open a "new" CC account for:

 

1) HARD PULL INQUIRY

2)  AAoA decrease

3) New account "ding"

 

Is that correct?  You get "dinged" 3 times for opening a new CC account?

 

1) The new account "ding" lasts up to one year from the opening date.

 

2) The HARD PULL "ding" lasts up to one year from the opening date?

 

3)  Your AAoA for this new account will only factor in ONE year for a total of 23 months?

 

Am I correct?!?

 

Thanks


It can happen yes but not everyone loses points for a new TL being added. 

Regular Contributor
Posts: 173
Registered: ‎05-31-2012
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Re: Does FICO increase when an account ages to one full year?????

While you do take a potential hit for the inquiry and the drop in AAOA you do get your UT lowered with the new account, that can potentially get you a " bump" to counter the "dings"


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