topic Re: FICO Score: Length of Credit Question in Understanding FICO® Scoring

FICO Score: Length of Credit Question

Anonymous — Tue, 09 Oct 2018 15:48:53 GMT

I'm 25 and don't have an extensive length of credit history. At the end of 2018, my credit history will be 6 years total.

I'm curious what the FICO 8 scoring model considers "Fair", "Good", "Very Good", and "Exceptional"? (In terms of years)

This is what the website says:

-Your FICO® Score 8 based onExperian data: 763

-Length of Credit: Fair

Your oldest account has been open for 5 years, 10 months.

Having a less established credit history or having too many accounts that haven’t been open very long is a sign of higher risk.

Re: FICO Score: Length of Credit Question

Medic981 — Tue, 09 Oct 2018 15:55:26 GMT

@Anonymous wrote:
I'm 25 and don't have an extensive length of credit history. At the end of 2018, my credit history will be 6 years total.

I'm curious what the FICO 8 scoring model considers "Fair", "Good", "Very Good", and "Exceptional"? (In terms of years)

This is what the website says:

-Your FICO® Score 8 based onExperian data: 763
-Length of Credit: Fair
Your oldest account has been open for 5 years, 10 months.
Having a less established credit history or having too many accounts that haven’t been open very long is a sign of higher risk.

Age of credit has to do with Average Age of Accounts not so much with Age of Oldest Account.

Re: FICO Score: Length of Credit Question

Anonymous — Tue, 09 Oct 2018 16:11:58 GMT

@Medic981
Age of credit has to do with Average Age of Accounts not so much with Age of Oldest Account.

I don't really think that's the case. Both are important factors and are responsible for generating negative reason codes.

OP, one thing you don't want to get caught up on is the fluff wording used by CMS software that tells you fair/good/etc. Those things don't matter and many times aren't accurate. An AoOA of around 17 years and an AAoA of around 7.5 years are the values generally accepted to be top notch in terms of obtaining best scoring. Anything greater than those values is considered gravy. That being said, being at both of those value would the only way someone could be "green/excellent" or whatever, as no points would be being left on the table for Age of Credit at that point. This is of course only considering 2 out of 3 of the age factors, not taking into consideration AoYA at all for the sake of this discussion.

Re: FICO Score: Length of Credit Question

Anonymous — Wed, 10 Oct 2018 15:20:20 GMT

Thanks for the input!