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Thanks Cheddar for your response, I am one fact wiser now.
If it is not to much to ask, how high can I go in fico scoring with say 3 to 7 CCs or revolving accounts, no installment loans, or mortgages?
I have recently lost my BoA card, I was told that I will be reissued a new account with the previous ones history, that it wont affect my credit. I know it will affect avg age of accounts, I have a short avg age history, is my score going to fall due to a decrease in the average age of my total credit accounts.
How does your oldest active account factor in, in a decision to grant credit when your avg age is half. My oldest account is a Credit One card of 2 years+2 months, my avg age is barely 1yr.
Sorry for the^^^addition questions, I am just curious and have more to learn in the world of credit and credit scoring, appreciate any further responses. Ohh and thanks cheddar I appreciate your response on my first question, thanks dude
jjmite wrote:Thanks Cheddar for your response, I am one fact wiser now.
If it is not to much to ask, how high can I go in fico scoring with say 3 to 7 CCs or revolving accounts, no installment loans, or mortgages?
You're very welcome. Happy to help.
It's actually possible to get a very high score with only a few credit cards. Installment loans and mortgages help in the "credit mix" category, but they are not absolutely necessary for a very high score. Generally, the most important criteria for very high scores are to have a solid payment history (with zero late payments) and very old accounts, regardless of which type of accounts they are.
jjmite wrote:
I have recently lost my BoA card, I was told that I will be reissued a new account with the previous ones history, that it wont affect my credit. I know it will affect avg age of accounts, I have a short avg age history, is my score going to fall due to a decrease in the average age of my total credit accounts.
It will probably affect average age of accounts for the next two years. The new card will inherit the history and age of the original account, while the original account will be marked as "Lost/stolen" and will report for the next two years. The net effect depends on how old the original account is in relation to your overall average age of accounts. If the card is older than your average age, it will actually make your average age longer, and if it's newer than your average age, it will bring your average age down.
The magnitude of this effect and what it will do to your FICO score depends on too many factors to be able to predict, but generally the more accounts you have, the smaller the effect the reaging of one account will have.
jjmite wrote:
How does your oldest active account factor in, in a decision to grant credit when your avg age is half. My oldest account is a Credit One card of 2 years+2 months, my avg age is barely 1yr.
As far as FICO is concerned, the age of your oldest account is a factor in your score in the same way that your average age is a factor. How this specific factor affects the decision to grant credit will vary from creditor to creditor.
Having said that, 26 months is a very short credit history in the grand scheme of things. (I'm not knocking you; my own history is not much longer than that.) Since you obviously have a number of accounts established now, you really should think about letting what you have age, which will require very few crfedit applications in the near future, if any at all.
Sorry for the^^^addition questions, I am just curious and have more to learn in the world of credit and credit scoring, appreciate any further responses. Ohh and thanks cheddar I appreciate your response on my first question, thanks dude
No problem. I hope I was able to help.