topic Re: Account Age in Understanding FICO® Scoring

Account Age

Anonymous — Fri, 06 Sep 2019 15:50:38 GMT

I am on a rebuilding path and was just wondering do credit scores get increases when accounts age to a year? I have a few accounts opened in Sept 2018 and want to know if they will bring any positive at the year mark. Thanks in advance for any insight.

Re: Account Age

Anonymous — Fri, 06 Sep 2019 16:21:06 GMT

If you're rebuilding it suggests that you are in a negative scorecard which could prevent the significant gains that you would see if you were in a clean scorecard. I'm not sure if you would see any gains at all, but if so my understanding is that they'd be minor.

Re: Account Age

SouthJamaica — Fri, 06 Sep 2019 16:51:37 GMT

@Anonymous wrote:
I am on a rebuilding path and was just wondering do credit scores get increases when accounts age to a year? I have a few accounts opened in Sept 2018 and want to know if they will bring any positive at the year mark. Thanks in advance for any insight.

Your credit scores do increase as accounts age. The 1-year anniversary of a particular account is not meaningful. What is meaningful are the following metrics:

AoOA - Age of oldest account (the older the better)

AoYA - Age of youngest account (the older the better)

AAoA - Average age of accounts (the older the better)

Re: Account Age

RSX — Fri, 06 Sep 2019 18:50:58 GMT

^ this

also, what might help your score in Sept is the Inquiries turning one years old. Though they aren’t fully gone for 2 years, most drop from your scoring after 1 year

Re: Account Age

Anonymous — Fri, 06 Sep 2019 19:11:44 GMT

SJ, don't the clean scorecard assignment factors though mean less to the OP since he's in a dirty scorecard?

Re: Account Age

Anonymous — Fri, 06 Sep 2019 19:34:29 GMT

I was a true victim of ID Theft and is one of the reasons I state I am rebuilding. My current FICO 8's are EQ 687, EX 682, TU 616 (1 medical collection only on TU) and 1 recent (May 2019) late payment on all 3 Bureaus. Hospitalized in May and did not get my minimum payment out whille hospitalized for 3 weeks and it wasn't at the fore front. All of my accounts are listed below with those being all 100% on time payments with dates acquired.

Chase Card (AU) -$122/ 20 k opened 5/2010

Lowes (AU) - 0/15k opened 7/2012

Credit Builder - $8/5k opened 9/2018

Auto - right at start of rebuild horrible int rate balance $7938 - opened 9/2018

Greendot Secured Card -$29/350 - opened Feb 2019

Furniture Store Credit - June 2018 - $2308 balance

credit building personal loan - 210/$500 - June 2019

Amex AU - 0/5k - opened August 2019

Experian shows 2% UTI - 9 Open Accounts - 22 Inquiries in the last 2 years but 12 of those are from the auto search in Sept of 2018. 13,067 of Debt with a 82k income. Just trying to see at what point i could be considered for my own CC with a decent SL.

Re: Account Age

SouthJamaica — Sat, 07 Sep 2019 03:31:53 GMT

@Anonymous wrote:
SJ, don't the clean scorecard assignment factors though mean less to the OP since he's in a dirty scorecard?

I don't know enough to answer that question. I just know that those 3 factors count.

Re: Account Age

Anonymous — Sun, 22 Sep 2019 02:41:09 GMT

I thought I recalled it being said age of youngest account doesn’t penalize or award points on dirty scorecards, but I am obviously not able to test that theory.

Maybe someone can chime in and confirm? Could’ve sworn Rev said that, but I may be inaccurate.

Re: Account Age

Anonymous — Sun, 22 Sep 2019 03:01:56 GMT

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AoYA-and-Fico8/td-p/5111983

Re: Account Age

Anonymous — Sun, 22 Sep 2019 03:18:49 GMT

It could be possible here AoYA and inquiries did not have an effect on the dirty card and that’s why when he went to the clean card he saw the decrease.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Dirty-Clean-FICO-8-FICO-9/m-p/5513490/highlight/true#M151637

Re: Account Age

Anonymous — Sun, 22 Sep 2019 03:35:36 GMT

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AoYA-6-month-threshold-TU-11-points/m-p/5634275/highlight/true#M156511

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/When-AoYA-Reaches-One-Year/m-p/5592909/highlight/true#M154782

I think the lack of a new account reason code on derogatory scorecards is explicit.

Re: Account Age

Anonymous — Sun, 22 Sep 2019 03:52:28 GMT

However sprees may cause a separate drop that may recover at three months on dirty score cards.

BBS remember we were discussing the possibility of additional penalty for multiple new accounts.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/Highest-AoYA-threshold/m-p/5220910/highlight/true#M138031

Re: Account Age

Anonymous — Mon, 23 Sep 2019 17:07:24 GMT

@Anonymous wrote:
https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AoYA-6-month-threshold-TU-11-points/m-p/5634275/highlight/true#M156511

I'm not sure if this is only for 'thin' files or 'thin AND young' files, but 'Length of time revolving accounts have been established' is definitely tied to AoYA on my thin AND young file.

I have very detailed data on all 28 FICO scores here showing that reason shifting down at AoYA 3, 6, and now recently at 9 months. (I abbreviated it to 'Short revolving history' in the list of reasons on all 28 FICO scores for each month.)

TU 4 went up +5 at AoYA 9mos without a change in reasons, but TU Bankcard 4 (+4) did show another shift down in the list for 'Length of time revolving accounts have been established'.

( Some good information on 'Length of time revolving accounts have been established' in a thread started by @BrutalBodyShots .)

Re: Account Age

Anonymous — Mon, 23 Sep 2019 19:51:26 GMT

@CassieCard thank you for the wonderful information as always.

And with my recent testing showing loans do not reset AoYA on version 8, it makes perfect sense that AoYA is tied to the age of revolving accounts negative reason code. Now we know why, loans do not reset it. So I wonder if that holds true on the older models? First we’ve got to know the thresholds.

What I’m very interested in learning now is what the AoYA thresholds are for the older algorithms.

So I would be very very interested in learning any of your score changes related to AoYA aging on the older algorithms.

You have clearly established the three and six month AoYA awards. The only question is whether it’s tied to thin or young or both as you said.

Re: Account Age

Anonymous — Mon, 23 Sep 2019 19:57:45 GMT

I was also reading a couple older threads where it appeared people rebucketed at six years AoOA . I still think the number may be much lower than commonly assumed. In those cases there were no other reasons for those people score jumps.

Just because you’re in an aged scorecard doesn’t mean you’re going to be able to reach 850.