When is an account no longer considered "new"?

[vanillabean]

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@JLK93 wrote:
I had a similar experience. If you don't mind my asking, how much did your FICO 8 scores increase? How many inqquiries did you have in the last year?

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17 and 18 points for two of them. One inquiry.

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@JLK93 wrote:
 

Youngest account aging to 1 year seems to be a significant rebucketing event for FICO 8 and 9.

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Certainly does. Good to hear it from you too.

[JLK93]

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@Anonymous-own-fico wrote:

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@JLK93 wrote:
I had a similar experience. If you don't mind my asking, how much did your FICO 8 scores increase? How many inqquiries did you have in the last year?

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17 and 18 points for two of them. One inquiry.

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 I picked up 19 points on my Experian Auto Enhanced score.

[JLK93]

My youngest account is now 15 months old. I was able to locate  reason codes from a couple of times when my FICO 8 Auto Enhanced scores temporarily dipped below 850. The new account reason code disappeared when youngest account aged to 1 year. 

The 2 following examples are separated by approximately 1 month.

Equifax FICO 8 Auto Enhanced reason statements with youngest account <1 year:

1. You opened a new credit account relatively recently. [?]
2. You have not established a long installment credit history. [?]
3. There are no recent balances on your revolving credit accounts. [?]
4. You've recently been looking for credit. [?]

Equifax FICO 8 Auto Enhanced statements with youngest account >1 year:

1. There are no recent balances on your revolving credit accounts. [?]
2. You have not established a long installment credit history. [?]
3. You've recently been looking for credit. [?]
4. You have no recent activity from an auto loan. [?]

Recent Equifax FICO 8 Bankcard Enhanced reason statements, from Citi, with youngest account at 14 months:

1. Length of time installment loans have been established
2. Lack of recent consumer finance company account information.

FICO 04 reason statements still include:

1. You opened a new credit account relatively recently. [?]

I'm not sure any useful information can be obtained from these reason codes. The youngest account reason code does seem to disappear for FICO 8 when youngest account ages to 1 year. It continues to be generated for FICO 04 with youngest account over 1 year.

[JLK93]

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@Anonymous wrote:

 the timing of an account turning 1 year old often coincides with inquiries turning one year old,   

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Actually, that doesn't happen all that often. This is only an issue if the inquiry occurs in the first 2 days of the month. The oldest account always ages to one year of the 1st. Anyone with daily credit monitoring should have no difficulty separating the 2 aging events.

[Anonymous]

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@JLK93 wrote:

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@Anonymous wrote:

 the timing of an account turning 1 year old often coincides with inquiries turning one year old,   

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Actually, that doesn't happen all that often. This is only an issue if the inquiry occurs in the first 2 days of the month. The oldest account always ages to one year of the 1st. Anyone with daily credit monitoring should have no difficulty separating the 2 aging events.

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So, just for clarity, if a person had an account that was opened on 01/09/2016, and he pulled his credit scores on 01/16/2017, you are saying that the FICO 8 algorithm would not consider his account 1 year old?  He'd need to wait until Feb 1 before the algorithm would classify that account as 1 year old?

[JLK93]

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@Anonymous wrote:

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@JLK93 wrote:

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@Anonymous wrote:

 the timing of an account turning 1 year old often coincides with inquiries turning one year old,   

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Actually, that doesn't happen all that often. This is only an issue if the inquiry occurs in the first 2 days of the month. The oldest account always ages to one year of the 1st. Anyone with daily credit monitoring should have no difficulty separating the 2 aging events.

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So, just for clarity, if a person had an account that was opened on 01/09/2016, and he pulled his credit scores on 01/16/2017, you are saying that the FICO 8 algorithm would not consider his account 1 year old?  He'd need to wait until Feb 1 before the algorithm would classify that account as 1 year old?

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No, the algorithm will consider the account 1 year old on 01/01/2017. If an inquiry was taken on the same date, the algorithm will consider the inquiry 1 year old on 01/08/2017.

[Anonymous]

Fascinating!  So an account often turns an integer year value in age before it is exactly n.0000 years old.

And again, just so I am sure I am understanding you, this is true for any integer value.  It would be true about an account turning 4 years old as well, right?  And it is not confined to one's oldest account, or one's youngest account, necessarily -- it's simply how the algorithm calculates any account turning over into a new year integer value.  Am I right?

[JLK93]

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@Anonymous wrote:

Fascinating!  So an account often turns an integer year value in age before it is exactly n.0000 years old.

And again, just so I am sure I am understanding you, this is true for any integer value.  It would be true about an account turning 4 years old as well, right?  And it is not confined to one's oldest account, or one's youngest account, necessarily -- it's simply how the algorithm calculates any account turning over into a new year integer value.  Am I right?

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Yes. You are correct. The algorithm considers all accounts as opened on the 1st of the month. This applies for all scoring and aging purposes. All account aging occurs on the 1st. This includes FICO 9. At some point in the future this will probably change, but it won't happen soon.

It's not just confined to new year aging. It applies to all aging.

It is frequently said that a person must have 6 months of credit history to generate a FICO score. I first generated a FICO score with 5 months and 11 days of credit history. From the FICO scoring perspective, it was 6 months. It is possible to generate a FICO score with 5 months and 1 day of credit history. 

[Anonymous]

I really love it that I am still learning new stuff on this site.  (Pretty regulalry.)  This aging-on-the-1st turns out to be a very valuable thing to know.

[805orbust]

That's fascinating... what I'm even more surprised about is the lack of data on the effect of the youngest account aging 2 years... is this true?  It shouldn't be too difficult to to determine.  I'll most likely have my final "new" account by next month.  I will be taking at LEAST a 2 year hiatus from any applications for credit.  However, that gives rise to a question about rebucketing events:  Does every rebucketing event result in a change in reason codes?