Does FICO take your oldest account into consideration as a direct-scoring factor?
The reason I ask is because I am about to pull for a loan. I know I will lose my wife's account, which is a 10+ year CC with perfect history, when they score me.
So let's say for the sake of argument that the oldest account is 10 years old and it moves my AAOA from 3.9 years to 3.2 years. Will I still see a decline in score based on this move? Remember: I am losing the 10 year account buy my AAOA isn't going to become lower than 3 years.
Starting Score: (TU) 517 (EQ) 469 (EX) 519 (6/1/2010)
That's what I thought. No +/- for how old the oldest account is?
You have on overall length of credit history and then you have your AAoA. Two different facets of scoring. You may lose some points for overall length of credit history if this 10 year old account is your oldest tradeline.
I echo MVV's comments. Your AAoA will still be 3 years based on the information provided.
@kjm79 wrote:You have on overall length of credit history and then you have your AAoA. Two different facets of scoring. You may lose some points for overall length of credit history if this 10 year old account is your oldest tradeline.
Ah ... there we go. I wasn't sure if "overall length of credit history" was a unique facet in and of itself. Thanks.
@llecs wrote:Why would it drop? Are they asking it be deleted?
I am an AU on it and I am going for a HELOC or Home-Equity loan.
@MamboItaliano wrote:
@kjm79 wrote:You have on overall length of credit history and then you have your AAoA. Two different facets of scoring. You may lose some points for overall length of credit history if this 10 year old account is your oldest tradeline.
Ah ... there we go. I wasn't sure if "overall length of credit history" was a unique facet in and of itself. Thanks.
They're usually lumped together, any time I've seen it as a helping/hurting your score factor. Both are specifically listed though. Established history of X amount of years and then the AAoA listed. So both are considered, obviously I can't say exactly how it factors into the score. Maybe that's more of a bucket issue, someone with 10 years of history should be a point c vs someone with 5 years of history should be at point b.
Does the lender not allow the AU status for HELOC?
ETA: Maybe this will help. From my recent what's hurting your score page:
The account isn't closed. I am simply anticipating my "losing" the account for consideration by the lender when I go to apply for the loan because I am under the impression that mortgage lenders are now watching for AU's.