topic Re: When AoYA Reaches One Year... in Understanding FICO® Scoring

When AoYA Reaches One Year...

Anonymous — Sun, 28 Apr 2019 04:59:01 GMT

What happens when the age of your youngest account reaches one year? I ask because I have seen various answers: anything from no score change, to a small score change, to a score change of 10+ points. Could I expect anything to change when the age of my oldest account reaches a year and, if there is a change, would that also factor in that the associated inquiry also reached one year (and therefore should also result in a slight bump)?

For reference, my current AAoA is 2 years 10 months, and will be 3 years flat when that account reaches 1 year old.

Thanks!

Re: When AoYA Reaches One Year...

Anonymous — Sun, 28 Apr 2019 11:39:14 GMT

From what I’ve read from @BBS and others, a one-year AoYA is easily worth 10 points, possibly more, and that’s just a flat-out gain for reaching this age. Why you’re seeing mixed reports can easily be explained - there are so many moving parts on a profile and everyone’s is different. Coincidental score-affecting events at the same time may boost, blunt, or completely negate the age threshold gain. One could pay off a high-UTI card that month and see a 20+ point gain overall. One might have a calm month with no other scoring factors coming into play and see 10 points or more. One might have an inquiry hit at the same time and end up with a net gain of 7 points, with three points being lost to the HP. One might also cross UTI thresholds upward on a couple of cards at the same time and see a net zero gain. One could also have a 30-late hit at that time and end up having the 10 point gain from AoYA help to limit the damage from the late account to only a 40 point net loss rather than 50 or more. Or there could be a mix of any or all of these factors.

But, isolated in a vacuum, you should expect in the neighborhood of 10 points (up to even 15) from hitting that one-year AoYA.

Re: When AoYA Reaches One Year...

Anonymous — Sun, 28 Apr 2019 17:23:03 GMT

@Anonymous wrote:
From what I’ve read from @BBS and others, a one-year AoYA is easily worth 10 points, possibly more, and that’s just a flat-out gain for reaching this age. Why you’re seeing mixed reports can easily be explained - there are so many moving parts on a profile and everyone’s is different. Coincidental score-affecting events at the same time may boost, blunt, or completely negate the age threshold gain. One could pay off a high-UTI card that month and see a 20+ point gain overall. One might have a calm month with no other scoring factors coming into play and see 10 points or more. One might have an inquiry hit at the same time and end up with a net gain of 7 points, with three points being lost to the HP. One might also cross UTI thresholds upward on a couple of cards at the same time and see a net zero gain. One could also have a 30-late hit at that time and end up having the 10 point gain from AoYA help to limit the damage from the late account to only a 40 point net loss rather than 50 or more. Or there could be a mix of any or all of these factors.

But, isolated in a vacuum, you should expect in the neighborhood of 10 points (up to even 15) from hitting that one-year AoYA.

I see. Thanks so much for the explanation! Much appreciated

Re: When AoYA Reaches One Year...

Anonymous — Mon, 29 Apr 2019 00:28:35 GMT

I would say 15-20 is pretty common actually. I believe I received 15 & 16 points on TU and EX for AoYA crossing to 12 months. I recall EQ being less, perhaps 8-9.

Re: When AoYA Reaches One Year...

Anonymous — Mon, 29 Apr 2019 00:41:56 GMT

@Anonymous wrote:
I would say 15-20 is pretty common actually. I believe I received 15 & 16 points on TU and EX for AoYA crossing to 12 months. I recall EQ being less, perhaps 8-9.

I see... and could I expect a score decrease by the same amount if I open a new account, and AoYA reverts to zero?

Re: When AoYA Reaches One Year...

Revelate — Mon, 29 Apr 2019 01:18:05 GMT

Depends on scorecard: derogatory scorecards don't even have the reason code for new accounts (60D late or worse, any collection / PR / judgement = derogatory).

30D late is on the top "clean" scorecards and as a result new accounts do factor there.

Opening a new account on them only affects AAOA, and there's no benefit to AOYA ticking over a year either.

Re: When AoYA Reaches One Year...

Anonymous — Mon, 29 Apr 2019 01:46:59 GMT

@Revelate wrote:
Depends on scorecard: derogatory scorecards don't even have the reason code for new accounts (60D late or worse, any collection / PR / judgement = derogatory).

30D late is on the top "clean" scorecards and as a result new accounts do factor there.

Opening a new account on them only affects AAOA, and there's no benefit to AOYA ticking over a year either.

Okay, I see. I do have derogs in my history - so I shouldn't expect a change in score when AoYA hits a year?

Re: When AoYA Reaches One Year...

Revelate — Mon, 29 Apr 2019 03:25:21 GMT

Yeah, if you have any listed above you won’t get anything at one year.

On the other hand you can relentlessly abuse opening new accounts without taking a penalty except for if you cross an AAOA boundary.

I suppose that has some value when establishing credit.

Re: When AoYA Reaches One Year...

Anonymous — Mon, 29 Apr 2019 03:32:45 GMT

@Revelate wrote:
Yeah, if you have any listed above you won’t get anything at one year.

On the other hand you can relentlessly abuse opening new accounts without taking a penalty except for if you cross an AAOA boundary.

I suppose that has some value when establishing credit.

I see. Thanks for the clarification. I will post if I see anything different at the one year mark. Just curious, though: does that remain the case so long as the info is on your account - i.e., 7 years?

Re: When AoYA Reaches One Year...

jenrn123 — Mon, 29 Apr 2019 03:34:53 GMT

Any thought on how this would apply to mortgage scores? I'm applying in the summer and will have my AoYA reach 1 year in August. Unfortunately, it is a student loan which I will be renewing for my final year of grad school, so not sure if the risk of new loan reporting during the application process is worth the point gain I might get. I "think" I should be able to get through the application process fairly quickly as I am purchasing my mom's house, so no pre-approval or house shopping needed, only finding the best rate. If I can socialize (Revelate's terminology) a few potential lenders and get a good idea of terms before the application I may be able to pull it off.

Re: When AoYA Reaches One Year...

Anonymous — Mon, 29 Apr 2019 04:28:14 GMT

SHJ, the score increase received when you reach 12 months AoYA is often less than the score decrease from opening a new account when your AoYA is > 12 months and resets to 0 months.

The reason for this is that with a new account usually an inquiry is at play, but also the AAoA drop can be significant with the opening of a new account, especially on a thin file relative to the AAoA gain (1 month) when AoYA ticks to 12 months.

Re: When AoYA Reaches One Year...

Revelate — Mon, 29 Apr 2019 05:24:46 GMT

Yep as long as on a derogatory scorecard for either FICO 8 or FICO 04 variants (EQ / TU mortgage scores for example) this holds true.

Actually if you have a strong enough file this is pretty easy to see on TU FICO 4: will get to three reason codes and no 4th, nothing about new accounts and as soon as the derogatory item drops off if you have a recent account poof it shows up.

Direct experience, twice, on that one.

I didn’t have access to EX FICO 2 at the time that I was dirty on EX but I suspect it is the same.

If you are on any of the clean scorecards, namely nothing worse than a 30D late, then new accounts are something of a big deal especially on the mortgage scores

Re: When AoYA Reaches One Year...

Yeliaba1 — Thu, 02 May 2019 21:40:25 GMT

AoYA hit one year and saw no change across all three CRAs. I do have derogs (90 day lates and accounts IIB) across all three.

Re: When AoYA Reaches One Year...

Anonymous — Thu, 09 May 2019 00:50:17 GMT

@Anonymous wrote:
SHJ, the score increase received when you reach 12 months AoYA is often less than the score decrease from opening a new account when your AoYA is > 12 months and resets to 0 months.

The reason for this is that with a new account usually an inquiry is at play, but also the AAoA drop can be significant with the opening of a new account, especially on a thin file relative to the AAoA gain (1 month) when AoYA ticks to 12 months.

I would just clarify the INQ points are separate and will come back in 365 days, NOT on the 1st with AoYA points. However, one reason you would not realize the same points at 12 months is because some of those are awarded at 3 and 6 months, it is theorized and I also believe. Plus, as you state, if AAoA is affected (would be more so on thin) that would also affect score.

Re: When AoYA Reaches One Year...

Revelate — Thu, 09 May 2019 02:05:39 GMT

The recent data I got on EX FICO 8 at least suggests a change from the older models, as a result it wouldn't surprise me at all if there's breakpoints under a year or a pattern, and as such I don't expect to get all the points I lost back once my newest account ticks over a year... probably will get something as time passes.