Understanding FICO® Scoring

[LionLaw]

So, my Discover card is approaching its 12th birthday; I opened it some time in February 2001, back when CCC reps could take apps on college campuses. I know from my readings of this forum that account age is one of the most important criteria in determining one's scorecard/bucket, and I seem to remember that one of the cutoffs that myFICO members had identified happened at the 12-year mark.

Does anyone have any insight as to whether I should expect a rebucketing? Working to raise my FICO score has been a rewarding process; I know that rebucketing is just another part of that process, and that being the youngest in a new bucket of peers with longer histories will likely hurt me in the short term, so I want to try to stay informed.

Just FYI, my current score, 684, is with 22% overall util and one of 3 CCs showing zero balance, plus one additional NPSL charge card with a high balance. By mid-late February, when my score next updates and any rebucketing will have taken effect, I expect to have overall util under 10%, with 2 of 3 CCs showing zero balances, plus 2 NPSL charge cards, each with a relatively small balance. Only negatives on my CR are some very late payments on my Student Loans, but none more recent than august/september 2011. AAoA is around 6 years. Any idea what to expect?

[Walt_K]

I don't think anyone knows for sure.  Rebucketing isn't that well understood on a granular level.  Here's an old thread that mentions some of the date cutoffs that have been inferred: http://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Rebucketing/td-p/268806/highlight/true/pa...

[LionLaw]

Interesting post. I have a couple of 90+ lates on my SLs, but the most recent was about 18 months ago; it sounds like that would put me into a separate bucket altogether. I wonder if I'll stay in one of the negative buckets for the full 7 years that those lates will show on my CR, or if I will get moved out sooner.

Rebucketing... so mysterious...

[llecs]

As mentioned....there's no set rule. I might get rebucketed at 12 years and you might get rebucketed at 15.5. It's a YMMV thing and there's no way to predict. It's all based on report content, mix of credit, baddies reporting, AAoA, oldest TLs (overall, revolving, installment), whether or not you applied for new credit in the past year, etc.

You mentioned that you have very late baddies on the SL? If 90 or worse, you won't be rebucketed until those lates go away.

[LionLaw]

Well, I guess that means I'm in the derog bucket for the next 5.5 years, since I had a 120-day late in August/September 2011. On the plus side, I should be able to work my way towards the top of that bucket; on the downside, I imagine the FICO score cap on that bucket is relatively low. But, as long as I can get up above 720 in the next year, I'll be happy.

[djrez4]

While your oldest account matters a bit, your average age of account matters much more.  I don't think oldest account factors into bucketing at all.  AAoA definitely does.

[LionLaw]

This was one of the things I was wondering about--length of credit history vs. AAoA. Based on my readings here, I was under the impression that overall length of credit history (i.e. age of oldest account) was the determining factor for rebucketing purposes, and then AAoA is used for scoring within that bucket. My AAoA is going to be around 2006/2007 pretty much forever; I have over a dozen TLs that all date to that timeframe, with only one account older (my Discover) and only a couple that are newer.

[Walt_K]

Hitting 720 is a reasonable goal.  My scores have gotten up to about 750 on EX, and I think the highest I've seen my TU was 728.  I have several 120 day lates and a couple 150 day lates. 

[AndySoCal]

I would say no.  A rebucket can happen if /when something changes  the four reasons that are affecting your score.   Ie the level of indebtedness goes up or down, A derogatory item being removed  from your credit report that was the most recent derogatory item on your credit report. Etc