Re: Guess the cause of my score drop[ Edited ]
11-30-2012 07:10 AM - edited 11-30-2012 07:12 AM
HiLine wrote:With the new card added, my AAoA fell to below 5 months. I had just finished an app spree, but this new account apparently brought the AAoA down to the range that FICO considers a short revolving credit history. It looks like the critical point is at 5 months or so. The penalty for falling below this must be severe, way higher than the 15 points I had lost due to another new account.
In the FICO algorithm, if your AAoA is less than a year, it's automatically calculated at a year is our understanding of it. At least that's the way the report data is presented from various sources.
Really with the way it rounds down, until your AAoA >= 2 years, it's stuck at the bottom for that part of the metric, so anything under that is a wash.
Edit: also not sure on that short-revolving history tag, that may be as a result of new accounts rather than AAoA.
Starting Score: EQ 561, TU 567, EX 599* (12/30/11, EX lender pull 12/29/11)
Current Score: EQ 672, Wally TU 682, EX 680ish (1/12/14)
Goal Score: 700 in all three (01/01/15)
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