topic Re: When does New credit become not New Credit? in Credit Cards

When does New credit become not New Credit?

DawgZ — Sun, 02 Mar 2014 22:38:35 GMT

I recently was turned down for a recon CLI because of 'To much New Credit'. When does New credit become not New Credit?

Re: When does New credit become not New Credit?

gdale6 — Sun, 02 Mar 2014 22:45:52 GMT

24 months in eyes of FICO, 6 mo no inquiries most likely minimum for more approvals.

Re: When does New credit become not New Credit?

HiLine — Sun, 02 Mar 2014 22:48:27 GMT

@gdale6 wrote:
24 months in eyes of FICO, 6 mo no inquiries most likely minimum for more approvals.

You probably meant 12 months for the former? Agreed on the latter.

Re: When does New credit become not New Credit?

-Wade- — Sun, 02 Mar 2014 22:49:59 GMT

@DawgZ wrote:
I recently was turned down for a recon CLI because of 'To much New Credit'. When does New credit become not New Credit?

FICO scoring considers anything under 1 year as new, though it graduates to less and less important over the months. Same for inquiries which have no effect after 1 year.

Re: When does New credit become not New Credit?

-Wade- — Sun, 02 Mar 2014 22:52:49 GMT

@gdale6 wrote:
24 months in eyes of FICO, 6 mo no inquiries most likely minimum for more approvals.

Where do you get your 24 months info from ? if i may ask ???

Re: When does New credit become not New Credit?

ecxpa — Sun, 02 Mar 2014 22:58:58 GMT

@Wade64 wrote:
@DawgZ wrote:
I recently was turned down for a recon CLI because of 'To much New Credit'. When does New credit become not New Credit?

FICO scoring considers anything under 1 year as new, though it graduates to less and less important over the months. Same for inquiries which have no effect after 1 year.

This seems to be the consensus around the internet. SOooooooooo.......if this is true why do the CRA's maintain the inquiries for TWO years. Same thing goes for late payments. If there effect dwindles, why keep reporting them. It seems like a conspiracy with lenders and CRA's to keep things on a credit report. If the individual has these things on the report the lender is "justified" in charging a higher interest rate. I'm not sure

Re: When does New credit become not New Credit?

-Wade- — Sun, 02 Mar 2014 23:24:46 GMT

@ecxpa wrote:
@Wade64 wrote:
@DawgZ wrote:
I recently was turned down for a recon CLI because of 'To much New Credit'. When does New credit become not New Credit?

FICO scoring considers anything under 1 year as new, though it graduates to less and less important over the months. Same for inquiries which have no effect after 1 year.

This seems to be the consensus around the internet. SOooooooooo.......if this is true why do the CRA's maintain the inquiries for TWO years. Same thing goes for late payments. If there effect dwindles, why keep reporting them. It seems like a conspiracy with lenders and CRA's to keep things on a credit report. If the individual has these things on the report the lender is "justified" in charging a higher interest rate. I'm not sure

Late payments reports for 7 years and will always have a lil affect on your score it's just not as much as time goes by. Fico stop counting inquires after 1 year. But for Fako scores it's 2 years. I can't answer why it works other than that;s the way it works.

Re: When does New credit become not New Credit?

ecxpa — Sun, 02 Mar 2014 23:34:36 GMT

You are right.......I have some late payments (3 years) and my scores have recovered pretty good, my TU fico is 745, my Ex Fico is 729, and my EQ Fico is 666 (I have an extra baddie on EQ from divorce) ....but I have been denied credit at times due to late payments on TU or Ex that are 3-4 years old......but over the past year I can't complain with the CL's I've been able to get.

Re: When does New credit become not New Credit?

gdale6 — Sun, 02 Mar 2014 23:50:28 GMT

@Wade64 wrote:
@gdale6 wrote:
24 months in eyes of FICO, 6 mo no inquiries most likely minimum for more approvals.
Where do you get your 24 months info from ? if i may ask ???

When an account turns 24 months old there is a boost in FICO for the age of the particular account also it is deemed to be fully recorded (meaning 2 yrs of its history is on file). The inquiry for the account can affect your score for up to 12 months but most of the points lost are regained within 6 months.

1) Payment History: 35%

This category includes payment history information about several different types of accounts such as credit cards, retail accounts and installment loans. Many factors are considered including number of past due items on file, amount past due on delinquent accounts or collection items and severity of delinquency (i.e. how long past due).

In determining your score, weights are assigned to each year of an individual’s payment history:

40% - Most recent 12 months
30% - Prior 12 to 24 months
20% - Prior 24 to 36 months
10% - Prior 36 to 48 months
0% - Older than 4 years

Re: When does New credit become not New Credit?

-Wade- — Sun, 02 Mar 2014 23:52:42 GMT

@ecxpa wrote:
You are right.......I have some late payments (3 years) and my scores have recovered pretty good, my TU fico is 745, my Ex Fico is 729, and my EQ Fico is 666 (I have an extra baddie on EQ from divorce) ....but I have been denied credit at times due to late payments on TU or Ex that are 3-4 years old......but over the past year I can't complain with the CL's I've been able to get.

Congrats on your cli's yeah to some lenders it don't hurt as bad as other's

Re: When does New credit become not New Credit?

-Wade- — Mon, 03 Mar 2014 00:07:26 GMT

@gdale6 wrote:
@Wade64 wrote:
@gdale6 wrote:
24 months in eyes of FICO, 6 mo no inquiries most likely minimum for more approvals.
Where do you get your 24 months info from ? if i may ask ???
When an account turns 24 months old there is a boost in FICO for the age of the particular account also it is deemed to be fully recorded (meaning 2 yrs of its history is on file). The inquiry for the account can affect your score for up to 12 months but most of the points lost are regained within 6 months.

1) Payment History: 35%

This category includes payment history information about several different types of accounts such as credit cards, retail accounts and installment loans. Many factors are considered including number of past due items on file, amount past due on delinquent accounts or collection items and severity of delinquency (i.e. how long past due).
In determining your score, weights are assigned to each year of an individual’s payment history:
40% - Most recent 12 months
30% - Prior 12 to 24 months
20% - Prior 24 to 36 months
10% - Prior 36 to 48 months
0% - Older than 4 years

The way i read this is payment history ( over all payment history not each new TL ). Yeah we all know the longer your payment history is the better, but that has nothing to do with when they stop counting it as new credit. I'm not trying to get smart or anything.

Re: When does New credit become not New Credit?

HiLine — Mon, 03 Mar 2014 00:10:29 GMT

@gdale6 wrote:
In determining your score, weights are assigned to each year of an individual’s payment history:
40% - Most recent 12 months
30% - Prior 12 to 24 months
20% - Prior 24 to 36 months
10% - Prior 36 to 48 months
0% - Older than 4 years

Hmm, this is an interesting weighting chart. Never seen it before... Did you get it from the FICO website?

Re: When does New credit become not New Credit?

gdale6 — Mon, 03 Mar 2014 00:20:31 GMT

@HiLine wrote:
@gdale6 wrote:
In determining your score, weights are assigned to each year of an individual’s payment history:
40% - Most recent 12 months
30% - Prior 12 to 24 months
20% - Prior 24 to 36 months
10% - Prior 36 to 48 months
0% - Older than 4 years

Hmm, this is an interesting weighting chart. Never seen it before... Did you get it from the FICO website?

No, I got the link from a friend of mine who used to be a loan officer who corrected me when I said new accts are only new for 12 months, he explained to me how they are affected for 24 months, the little things that I never would have thought of. 12 months is usually long enuf to wait for new credit though.

https://www.apgfcu.com/education-n-advice/money-management/financial-guidance/five-fico-score-factors-you-need-to-know.aspx

Some of the info is referenced from myfico.

Re: When does New credit become not New Credit?

HiLine — Mon, 03 Mar 2014 00:27:18 GMT

I thought so. The article is 9 years old; the FICO scoring models used today are quite different from those used back in the day. I'm not sure if the information is still relevant.

Re: When does New credit become not New Credit?

-Wade- — Mon, 03 Mar 2014 00:33:37 GMT

@HiLine wrote:
I thought so. The article is 9 years old; the FICO scoring models used today are quite different from those used back in the day. I'm not sure if the information is still relevant.

I still say it's the over all payment History. Not each new TL

Re: When does New credit become not New Credit?

gdale6 — Mon, 03 Mar 2014 01:18:35 GMT

@HiLine wrote:
I thought so. The article is 9 years old; the FICO scoring models used today are quite different from those used back in the day. I'm not sure if the information is still relevant.

You could be right, FICO 08 may not use these factors it is a completely different animal in the way it views new accounts, I would suspect that it is valid for older models of FICO, prob applies to 04 and definitely to 98.