topic Re: AoYA hit??? in Understanding FICO® Scoring

AoYA hit???

Brooklyn2018 — Sat, 02 Feb 2019 19:27:30 GMT

My AoYA is 4 mos. Will the hit be minimal, once my new card hits?(edited to add needed info below)

current scores/inq's in siggy

AoOA 5ys 3mos

AAOA 2ys 2mos

AoYA 4mos

2 coll=1 6.5yrs old/1 8mos old

3 CO(1 paid)2=4yrs old

AoOA 9yrs 9mos

AAOA 2yrs 9mos

AoYA 4mos

1 coll=8 mos old

3 CO(1 paid)2=4yrs old

AoOA 9yrs 9mos

AAOA 3yrs

AoYA 4mos

1 coll=8 mos old

3 CO(1 paid)2=4yrs old

Let me know if I'm missing anything???

Re: AoYA hit???

dynamicvb — Sat, 02 Feb 2019 22:22:11 GMT

I don’t really know the answer, but my youngest is 4 mos too and I haven’t seen any change in it going from when it was 0 mos to where it is now. I think I would be more worried about the average age going under 2 years. I think I remember seeing somewhere that is a factor. It looks like you may get under that with a new account.

Re: AoYA hit???

Brooklyn2018 — Sat, 02 Feb 2019 23:21:36 GMT

@dynamicvb wrote:
I don’t really know the answer, but my youngest is 4 mos too and I haven’t seen any change in it going from when it was 0 mos to where it is now. I think I would be more worried about the average age going under 2 years. I think I remember seeing somewhere that is a factor. It looks like you may get under that with a new account.

Thanks, dynamic.

Well, I ALREADY plugged the "new"(Cap1) card into AAOA. I am just trying to see if anyone knows the "estimated" impact of going from AoYA @4mos to AoYA @ 2mos(since Cap1 will report @ month 2) with information provided??

It might just be a generic answer.../YMMV?

Definitely appreciate the reply, though

Re: AoYA hit???

Anonymous — Sun, 03 Feb 2019 00:58:41 GMT

@Brooklyn2018

"My AoYA is 4 mos. Will the hit be minimal, once my new card hits?(edited to add needed info below)

current scores/inq's in siggy

AoOA 5ys 3mos

AAOA 2ys 2mos

AoYA 4mos

2 coll=1 6.5yrs old/1 8mos old

3 CO(1 paid)2=4yrs old"
-------------------------------------------

My hope is you can gain something from all this, or at least ...someone else can?

my profile is a little different than yours.

I just Finished a Massive "App O Rama" spree

added 12 new CC's in 4weeks (about 4 cards Amex & USBank have not reported yet, although I Have been using them)

EX 20 inquiries 24mos, yes 20 / didnt do the math on the last 12mos

overall Util = 12% Credit Usage

Oldest Acct. 34yrs

Average Age of ALL 3.9 years (after spree)

AoYA 0mos

2 30day lates 1=12/31/13 (My Screw Up) & 1 =12/2016 (Hospitalized)

1 Paid Child Support Derog. (X-wife filed bogus paperwork, took 6 months to get court date, I didnt owe!)

I have only seen a 9 point drop in My EX FICO8
ZERO AA in any Accounts including "Chase"

EX FICO8 Beginning of "App O Rama" Spree = 704 >> (I Think or real close)
EX Current as of Today 2/2/2019 = 695

havent really calculated EQ and TU yet..

Edited:

6 paid auto Loans Reporting totalling $200K+

No Mortgage / Paid house off in 2005

No Personal or Self Lender Loans

Income = Ability to pay ALL CL's/SL's (if Maxed all of them out) In 2 Months.

True Stated Income!

I am NOT reccomending an "App o Rama" spree like mine,

as some CCC's will take AA for "Credit Seeking" , "Too Many Inquires" & "Too many new accounts"

as always, YEMV/YMMV

Re: AoYA hit???

Brooklyn2018 — Sun, 03 Feb 2019 00:58:39 GMT

@Anonymous wrote:
@Brooklyn2018

"My AoYA is 4 mos. Will the hit be minimal, once my new card hits?(edited to add needed info below)
current scores/inq's in siggy

EX
AoOA 5ys 3mos
AAOA 2ys 2mos
AoYA 4mos
2 coll=1 6.5yrs old/1 8mos old
3 CO(1 paid)2=4yrs old"
-------------------------------------------
My hope is you can gain something from all this, or at least ...someone else can?

my profile is a little different than yours.

I just Finished a Massive "App O Rama" spree
added 12 new CC's in 4weeks (about 4 cards Amex & USBank have not reported yet, although I Have been using them)
EX 20 inquiries 24mos, yes 20 / didnt do the math on the last 12mos
overall Util = 12% Credit Usage
Oldest Acct. 34yrs
Average Age of ALL 3.9 years (after spree)
AoYA 0mos
2 30day lates 1=12/31/13 (My Screw Up) & 1 =12/2016 (Hospitalized)
1 Paid Child Support Derog. (X-wife filed bogus paperwork, took 6 months to get court date, I didnt owe!)
I have only seen a 9 point drop in My EX FICO8
ZERO AA in any Accounts including "Chase"
EX FICO8 Beginning of "App O Rama" Spree = 704 >> (I Think or real close)
EX Current as of Today 2/2/2019 = 695
havent really calculated EQ and TU yet..

I am NOT reccomending an "App o Rama" spree like mine,
as some CCC's will take AA for "Credit Seeking" , "Too Many Inquires" & "Too many new accounts"

as always, YEMV/YMMV

Thanks, Credit_Aholic.

I'm beginning to think there may not be much of a hit as I keep thinking there might be...

Congrats on the spree!

I'm not much of a spree kind of guy really. Even if my scores/profile could support it-Iwouldn't do it. I say that but, maybe when I'm in the high 700's??

thanks again

Re: AoYA hit???

Anonymous — Sun, 03 Feb 2019 01:07:16 GMT

you are welcome, keep us updated, as I'm trying to learn.

I go on a Crazy App spree all at once (some do not reccomend)

but I know at the beginning of next year, all those 12 month inquiries no longer count against your score, unless something changes.

I am going to work on Gardening, Reading, learning more about FICO8 Score Modeling, get my scores up to 760-780

and add some low interest credit union card's to the mix. this month, i will pay down my overall Util. below 8.9%

probably to 6% ...Everything i'm using is 0% BT's & Amazon Promotional till like Sept. of 2020.

so I am currently NOT paying any Interest. also probably weed out a few cards over time, if I dont like the way they're treating Me.

Re: AoYA hit???

Brooklyn2018 — Sun, 03 Feb 2019 01:16:25 GMT

@Anonymous wrote:
you are welcome, keep us updated, as I'm trying to learn.

I go on a Crazy App spree all at once (some do not reccomend)
but I know at the beginning of next year, all those 12 month inquiries no longer count against your score, unless something changes.
I am going to work on Gardening, Reading, learning more about FICO8 Score Modeling, get my scores up to 760-780
and add some low interest credit union card's to the mix. this month, i will pay down my overall Util. below 8.9%
probably to 6% ...Everything i'm using is 0% BT's & Amazon Promotional till like Sept. of 2020.
so I am currently NOT paying any Interest. also probably weed out a few cards over time, if I dont like the way they're treating Me.

Well, you'll definitely be on your way gardeing-smart move

Definitely the Best of Luck to ya!!

I'll add an update here once the new account hits and see what happens to my scores/changes. Hopefully, it'll help someone else a lil(?)

Re: AoYA hit???

Anonymous — Sun, 03 Feb 2019 03:01:21 GMT

An AoYA drop of 4 months to 2 months is likely a non-event. Not only will it not impact your scores much, IMO it won't adversely impact your scores at all. If there is a 3 month threshold (which I don't believe, but some do) you'd see whatever point drop you experience come back on the 1st of the following month.

Re: AoYA hit???

Brooklyn2018 — Sun, 03 Feb 2019 04:15:34 GMT

@Anonymous wrote:
An AoYA drop of 4 months to 2 months is likely a non-event. Not only will it not impact your scores much, IMO it won't adversely impact your scores at all. If there is a 3 month threshold (which I don't believe, but some do) you'd see whatever point drop you experience come back on the 1st of the following month.

Thanks, BBS.

...and that's kind of what I'm thought/hoping for anyways...IF there will be that(?) actually factored...?

I'll know here in a few days when EX updates(it's usually 1st to update)

Thanks again, BBS

Re: AoYA hit???

xaximus — Mon, 04 Feb 2019 18:53:23 GMT

Generally, AoYA going from 4 months to 2 wont have an impact. AAoA is what would factor more. Simple example below -
Card 1 - 60 months old.
Card 2 - 36 months old.
Card 3 - 12 months old.
In this scenario - the AAoA is 36 months.

If we change card 3 to 1 month..
Card 1 - 60 months old.
Card 2 - 36 months old.
Card 3 - 1 month old.
AAoA now is 32 months (2 years, 8 months).

Once you get under an AAoA of 2 years is when the impact to your score is more. As long as it's over 2 years, generally the impact is minimal, plus with every passing month, the impact lessens and your score grows. In your case, as long as you have enough old accounts to counter act the young account, you should be okay.

Re: AoYA hit???

Brooklyn2018 — Tue, 05 Feb 2019 00:09:58 GMT

Great example, xaximus!!👍

Thanks for the reply!!!

😊

Re: AoYA hit???

Anonymous — Tue, 05 Feb 2019 13:45:51 GMT

@xaximus wrote:

Once you get under an AAoA of 2 years is when the impact to your score is more. As long as it's over 2 years, generally the impact is minimal, plus with every passing month, the impact lessens and your score grows. In your case, as long as you have enough old accounts to counter act the young account, you should be okay.

While I agree with your overall points regarding AAoA, your post above may suggest to some that FICO scores increase every month based on AAoA increasing by 1 month in age every month, but that's not the case. As with many FICO scoring factors, thresholds exist at certain points. For example, if one reaches 24 months AAoA, perhaps the next threshold isn't until 30 months, then 36 months, etc. I just felt it was worth clearing that up.

Re: AoYA hit???

xaximus — Tue, 05 Feb 2019 19:52:55 GMT

@Anonymous wrote:
@xaximus wrote:

Once you get under an AAoA of 2 years is when the impact to your score is more. As long as it's over 2 years, generally the impact is minimal, plus with every passing month, the impact lessens and your score grows. In your case, as long as you have enough old accounts to counter act the young account, you should be okay.
While I agree with your overall points regarding AAoA, your post above may suggest to some that FICO scores increase every month based on AAoA increasing by 1 month in age every month, but that's not the case. As with many FICO scoring factors, thresholds exist at certain points. For example, if one reaches 24 months AAoA, perhaps the next threshold isn't until 30 months, then 36 months, etc. I just felt it was worth clearing that up.

Definitely agree with you @Anonymous. I didn't wanna complicate it too much. There are definitely certain thresholds that help increase one's score but also something to keep in mind. If a user has any late payments/collections/baddies whatsoever, the impact lessens as time goes. I based my response off that (based on the OP's first post). If one has a clean file then you are most definitely correct. If one does not have a clean file then every passing month helps with any baddies.

Re: AoYA hit???

Anonymous — Wed, 06 Feb 2019 00:38:41 GMT

@xaximus: I’m pretty sure there’s a thresholds on the derog’s age change too right? And depending on the age it could change score sheet.

@BBS: what is the consensus of the established thresholds for the different age categories?

Re: AoYA hit???

Anonymous — Wed, 06 Feb 2019 02:56:07 GMT

@Anonymous wrote:

@BBS: what is the consensus of the established thresholds for the different age categories?

Tough to say. My belief from reading on this forum is that maximum (no penalty) scoring can be achieved when age factors are as follows: AAoA 7 years 8 months, AoOA 17 years, AoYA 2 years. AoYA of 1 year is probably more than adequate in most cases, but some models seem to like to see a bit longer than that. As far as thresholds along the way, those are much tougher to come by. I determined on my profile that thresholds exist at 6.5 years and 7.5 years for AAoA and of course the well-documented 12 months AoYA. Other points though I'm not sure about, but they can be found mixed in and buried in other threads as people discover them.

Re: AoYA hit???

Anonymous — Wed, 06 Feb 2019 06:50:52 GMT

Do you think it’s a coincidence that after 12 months inquiries drop off for scoring purposes and after 12 months is the threshold for AoYA?

Re: AoYA hit???

xaximus — Wed, 06 Feb 2019 13:40:13 GMT

@Anonymous wrote:
@Anonymous wrote:

@BBS: what is the consensus of the established thresholds for the different age categories?
Tough to say. My belief from reading on this forum is that maximum (no penalty) scoring can be achieved when age factors are as follows: AAoA 7 years 8 months, AoOA 17 years, AoYA 2 years. AoYA of 1 year is probably more than adequate in most cases, but some models seem to like to see a bit longer than that. As far as thresholds along the way, those are much tougher to come by. I determined on my profile that thresholds exist at 6.5 years and 7.5 years for AAoA and of course the well-documented 12 months AoYA. Other points though I'm not sure about, but they can be found mixed in and buried in other threads as people discover them.

Sounds about right to me. In my research and readings, I've gotten similar numbers. The interesting thing is, for a thin file, the numbers are more on the lower side, while someone with a larger, thicker file, the numbers are more on the longer side. It's definitely interesting on how the general estimated age factors change across the board.

@Anonymous wrote:
@xaximus: I’m pretty sure there’s a thresholds on the derog’s age change too right? And depending on the age it could change score sheet.

Most definitely are. For example, a 30 day late impacts a larger amount for upto 2ish years, once past the 2 year threshold, it's only impacting minor points ~10, at times, depending on how thick one's file is, it may not be impacting at all. I've seen both examples. One thing to keep in mind is the amount of lates/derogs. A person having 1 late payment and having it drop off may have a couple of points gained while someone that has 10 late payments may not see any gain if a few fall off.

@Anonymous wrote:
Do you think it’s a coincidence that after 12 months inquiries drop off for scoring purposes and after 12 months is the threshold for AoYA?

Personally, no i don't think it's a coincidence. 12 months is enough of an established time with a lender to know how your financial habits are. That's how they target you for different promotions, cards, etc. Inquiries generally start aging off around 3-6 months. Even though the point gain is next to nothing, over a course of a year, you do gain something back.

Re: AoYA hit???

Anonymous — Wed, 06 Feb 2019 21:09:43 GMT

@xaximus wrote:
Inquiries generally start aging off around 3-6 months. Even though the point gain is next to nothing, over a course of a year, you do gain something back.

I and many others have not found this to be the case. From what I've seen, whatever point loss is realized the moment an inquiry hits your CR, that's the exact point gain returned 365 days later.

It would be almost impossible to determine if a point or two comes back throughout the course of those 365 days, but the fact that the points lost are exactly reversed at the 365 day mark more or less eliminates the possibility that points return based on inquiries during the course of those 365 days. If that were somehow the case, it would mean the removal of an inquiry would be "worth" more than initially taking it on, which wouldn't make any sense.

Re: AoYA hit???

Brooklyn2018 — Sun, 10 Feb 2019 12:09:09 GMT

Ok Cap1 finally reported at month 2:

EX from 592 to 588 = 4 pt loss

TU from 594 to 584 = 10 pt loss

EQ from 576 to 578 = 2 pt gain

In my case: Having thin and dirty files is hard to determine where the points COULD have been(?) Though, regardless of the changes in the last 2 months, the point hits weren’t as bad as I thought they’d be, as others have mentioned upthread.😊

I do appreciate the feedback from all the contributors to this thread. Thanks👍

Re: AoYA hit???

Revelate — Sun, 10 Feb 2019 17:18:19 GMT

Inquiries don't fade on EQ FICO 5, at all, and I find it a little suspect to think they do on any other model either though I don't have great data on that.

I had a few inquiries pass the 1 year mark during my mortgage process as the same time I was taking some inquiries as well, identical shifts up and down as I went from 2->3 then 3->2 then 2->3 and finally 3->2: 693 -> 700 -> 693 -> 700 -> 693

AOYA does appear to be 1 year on FICO 8, but I still had the reason code for new accounts certainly on TU FICO 4 after a year. Ultimately if you're trying to maximize the scoresheet you have to stop acquiring tradelines, but really since anything above 760 is basically bragging rights for anything remotely relevant product wise, it doesn't matter all that much.