What kind of Score Effect does different AAoA have??

[MidnightJester]

IT seems they break down peoples AAoA in groups. 2 Years and Under, 2 Years to 3, etc, etc. How many AAoA brackets are there?? What kind of scoring addition do they add aprox. at each persons scores bracket if anyone knows. Early april next year I am going to go from a AAoA of under 2years  to a AAoA of about 8years or more. It seems if you are building activley your AAoA is usually low. How many points are in the AAoA scoring for a persons scores

[CreditBob]

Go to www.bankrate.com/fico then click on get started. Then you will see the breakdown for the different time frames. This is after you click on how many credit cards you have. Make sure that you include line of credit account(s) because they are revolving trade lines.

In addition to that here is another thing you can take a look at.

Use the 25/75 rule.

75% of your revolving accounts should be open for a minimum of four years. This is both each individual account as well as the average account age. Then 25% or more of all your revolving trade lines should be open for a minimum of 7 years.

Remember, account age is not the only thing. It's your utilization percentages as well. In other words what is your current balance compared to your line of credit on each credit card or line of credit account?

[Involver]

Account age milestones will place you in different scorecards which will increase your maximum scoring.

From personal experience, 2 and 5 years of AAoA are "milestones". Same with 10 and 20 year oldest account.

[MidnightJester]

Thanks for the input. I look forward to giving some real hard facts in March of next year for this. In march when my AAoA jumps from aprox 1year to 8-10 years I will give a score update as long as I dont throw any other score modifiers into the mix then. My rehabed student loans will really alter my credit files AAoA. Has anyone watched their files as that AAoA took effect.

Has anyone taken a 10Year AAoA and wrecked it with a big APP SPREE down to less then 2years. What happened to your score? I know that inquiries and new TL will effect it and might be hard to figuire out what AAoA change actually did

[Dw4250]

I went on a MAJOR app spree in March 2014.  Added 9 new TL and 11 INQ (spread across the 3 reports, with most of them being on TU).  

AAofA went from 7 to 4

Lost between 8 and 27 points (depending on the report).

At the 3 month mark from their lowest point when all the TL hit my report, my EX score is (-5), my TU is (-20) and my EQ is (+5).

[Involver]

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@MidnightJester wrote:

Has anyone watched their files as that AAoA took effect.

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I have tracked my scores over the past 6 weeks with AAoA increasing from:

1 -> 2 -> 4 -> 5

Oldest Account:

8 -> 10 -> 20

From 1 to 2 years there was a bump, from 2 to 4 years AAoA there was no change, from 4 to 5 there was.  Score Watch says that I am now not being dinged as much due to the age of my credit history.

From 8-> 10 and 10 -> 20 there were significant changes.  

I have gained nearly 50 points from those age milestones.

[MidnightJester]

Awsome info. Looking forward to the AAoA bump im march or april with my scores from student loans(2 loans) reporting from 20years ago. I will keep you updated with the score changes. Great that you were monitoring your scores while the AAoA was changing.

[Dw4250]

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@MidnightJester wrote:

Awsome info. Looking forward to the AAoA bump im march or april with my scores from student loans(2 loans) reporting from 20years ago. I will keep you updated with the score changes. Great that you were monitoring your scores while the AAoA was changing.

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It's also worth noting that AAofA while important is not determinative.  By that I mean I have seen many people on here with AAofA of 2 years with scores >750.  AAofA seems to have the most effect on:

1) People just starting out in the credit game with relatively thin files

2) Those with VERY high scores

In practical terms, a 750+ is all you need to qualify for best terms with any major bank/lender on just about any type of loan/credit product.  If you want to have scores ~800 or above, then it appears a lengthy AAofA is required.

But it is fun to track!  

[MidnightJester]

For sure scores can be high with under 2 years AAoA. Mine were 750-770 across all 3 CRA's with 15 month history. About to go down with my 3 card spree to 3,4 months AAoA. Hope my scores are still above 720 after all report. I am hoping that the AAoA jump in april or so will take my score to 800 and above. 20 year paid as agreed student loan will help that alot as well but I was hoping for a 20-30 point jump from AAoA.