Okay so ran my report, credit is slowly climbing and Equifax give the positives and negatives as to why I've got my score.
It states under what's hurting your score:
You've opened an account recently.
You've opened credit cards recently.
There is insufficient information about mortgage accounts.
OKay I don't have a mortgage, give them that.
But my last credit card opened was 1 year 3 months ago (this was also last credit of anykind opened), how long does this need to age before it's not a negative in my credit profile?
3 in 1 report from equifax
It probably does not really turn, at a given date, from a "negative" to a "positive" in the absolute sense.
The two FICO categories that are relevant here are length of credit (15% category weight) and new credit (10% category weight).
New accounts affect both of those categories in different ways as time progresses.
Length of credit is fairly straightforwaes. A newly-added account has 0 age and thus reduces your average age of accounts.
A new account, prior to CR entry, usually has a new inquiry associated with it, which is scored for one year under new credit.
FICO, to some degree that is not specifically know, also considers age of new accounts. While oldest account and average age of accounts are considered under lenght of credit, it also appears that the age of new accounts is part of new credit. It could be for six months, one year, or 18 months. It could be an on-off switch that deducts points until a certain age is reached, and then shuts off its scoring as a new account. It could be on a declining monthly scale that reduces to zero after x number of months, and then is no longer considered "new credit." Only Fair Isaac knows the details. It is most likely a matter of degree, and not absolute. I would assume that, in your case, a new account that is 1 yr and 3 mos would not impact the same as a new account at 1 month.
Then, somehow, the scoring algorithm decides whether or not that new account is significant in its scoring. The "Factors affecting your scoring" were primarily developed as a tool to assist creditors in meeting their statutory obligation to inform a consumer, if they deny credit based on your CR, the significant reasons that led to that denial.
Again, no one knows the details of the algorithm that identifies those most significant factors, but we have some anecdotal experiences to rely upon.
It appears that the algorithm somehow identifies the top three or four factors that had the most impact. If the impact of any of the above based on age of a new account were significant, they would most likely rise to the top of the list, and appear in your CR. It does not tell you the degree of that significance, only that it was spotted.
In my opinion, assuming my assumptions of the inclusion of such factors is correct, having those listed as the more significant reasons might be a good rather than a bad sign. If that is the most significant item affecting your score, they will go away once they are no longer considered to trigger the account as new. They are not part of a highly-weighted scoring category, and not factors with a long FICO life.
They can always identify something that is impacting your score. I would rather have it be the impact of a new account than the impact of a major derog..........
If you take a test and you miss one question, it will be listed as a negative because it's the reason you didn't score 100%
If your FICO isn't a perfect score, it will list the reasons why it's not perfect and show them as negatives.
I believe RobertEG's statement is correct, that "The 'Factors affecting your scoring' were primarily developed as a tool to assist creditors in meeting their statutory obligation to inform a consumer, if they deny credit based on your CR, the significant reasons that led to that denial." I recall a similar statement in a response HTSU wrote to one of my posts where I complained about these factors, and I ever got a CSR to sort-of confirm that subsequently.
BUT the OP's main point, I believe, is that the factors are often wildly unrealistic. My latest example was in a "Credit Score & Analysis" I got from TU along with a CR:
-- #1: "The available credit on your open revolving credit accounts is too low." Really? $50K available (=total CL with current all zero balances) is too low? When I typically charge (and pay off) only $2K each month?
-- The other (supposedly less important) factors were reasonable. Balance too high on my new mortgage, too many INQs (i.e., >0), ...
When I was a kid, mothers across America taught their children, "If you can't say something good about someone, don't say anything at all." Now, the credit scoring system appears to have perverted that into, "If you can't say enough bad things about someone, make some up"!