topic Re: New accounts reaching month 3 in Understanding FICO® Scoring

New accounts reaching month 3

RobynJ — Thu, 05 May 2022 01:02:29 GMT

As a few here know I'm on a clean build journey and wanted to find out about new accounts. When all my new accounts hit the third statement and higher what effects are predictable to occur? I have read that there is normally an increase but is there an estimated amount? I am guessing it will be different for each individual but curious of what to expect. Thanks in advance everyone for all the knowledge.

Re: New accounts reaching month 3

SouthJamaica — Thu, 05 May 2022 03:03:02 GMT

@RobynJ wrote:
As a few here know I'm on a clean build journey and wanted to find out about new accounts. When all my new accounts hit the third statement and higher what effects are predictable to occur? I have read that there is normally an increase but is there an estimated amount? I am guessing it will be different for each individual but curious of what to expect. Thanks in advance everyone for all the knowledge.

I haven't noticed anything when age of newest account reaches 3 months.

Re: New accounts reaching month 3

FireMedic1 — Thu, 05 May 2022 09:46:17 GMT

This ^^^^^^^^^^^^^

You can assume that credit is considered “new” if it has been added to your reports within the past 6–12 months. Believe when AoYA hits 1 yr changes happen.

Re: New accounts reaching month 3

Remedios — Thu, 05 May 2022 14:02:47 GMT

Yes, there is increase on young files when youngest account reaches three months , TU also hands some points when youngest reaches six months

You don't get points for each account reaching certain age, just the youngest one.

This gain stops once your oldest account reaches three years and you're moved to a different scorecard.

Re: New accounts reaching month 3

RobynJ — Thu, 05 May 2022 14:14:33 GMT

That is the exact info I was looking for. Thank you @Remedios

Re: New accounts reaching month 3

Remedios — Thu, 05 May 2022 14:25:44 GMT

You're welcome.

One thing though, if you have AU accounts older than three years, it might change the equation a bit since AU account would put you on mature scorecard.

My daughter has AU accounts older than 3 years and there were gains, so I guess it can go either way. Maybe it depends on anti-abuse algorithm (long story).

If you don't have AU accounts, you will get a nice chunk of points on TU when AAoA reaches 9 months, the other two aren't as nice.

Re: New accounts reaching month 3

RobynJ — Thu, 05 May 2022 15:04:43 GMT

@Remedios wrote:
You're welcome.
One thing though, if you have AU accounts older than three years, it might change the equation a bit since AU account would put you on mature scorecard.

My daughter has AU accounts older than 3 years and there were gains, so I guess it can go either way. Maybe it depends on anti-abuse algorithm (long story).

If you don't have AU accounts, you will get a nice chunk of points on TU when AAoA reaches 9 months, the other two aren't as nice.

That is awesome. The AU account I have is from AMEX so it didn't give me the time like most other cards do. It's from a month ago. So it will happen when my youngest account hits 9 months?

Re: New accounts reaching month 3

Remedios — Thu, 05 May 2022 19:29:15 GMT

@RobynJ wrote:
@Remedios wrote:
You're welcome.
One thing though, if you have AU accounts older than three years, it might change the equation a bit since AU account would put you on mature scorecard.

My daughter has AU accounts older than 3 years and there were gains, so I guess it can go either way. Maybe it depends on anti-abuse algorithm (long story).

If you don't have AU accounts, you will get a nice chunk of points on TU when AAoA reaches 9 months, the other two aren't as nice.

That is awesome. The AU account I have is from AMEX so it didn't give me the time like most other cards do. It's from a month ago. So it will happen when my youngest account hits 9 months?

Not your youngest.

TU awards points when average age of your accounts reaches 9 months. The other two CRAs do not ( each CRA has algorithm slightly tweaked, which is why you can see score difference between the three in the presence of identical data).

Youngest account on new files like yours will see a gain at 3 months, for my daughter it's been 5 points, she also got 3 points when it reached 6 months.

There is also universal gain when youngest reaches a year but that's a long time lol.

It tends to be very significant compared to others, typically around 20 points or more. P

Re: New accounts reaching month 3

RobynJ — Thu, 05 May 2022 19:54:56 GMT

I wish you all knew how much I truly appreciate the knowledge you are all supplying for these forums.

@Remedios wrote:
@RobynJ wrote:
@Remedios wrote:
You're welcome.
One thing though, if you have AU accounts older than three years, it might change the equation a bit since AU account would put you on mature scorecard.

My daughter has AU accounts older than 3 years and there were gains, so I guess it can go either way. Maybe it depends on anti-abuse algorithm (long story).

If you don't have AU accounts, you will get a nice chunk of points on TU when AAoA reaches 9 months, the other two aren't as nice.

That is awesome. The AU account I have is from AMEX so it didn't give me the time like most other cards do. It's from a month ago. So it will happen when my youngest account hits 9 months?
Not your youngest.
TU awards points when average age of your accounts reaches 9 months. The other two CRAs do not ( each CRA has algorithm slightly tweaked, which is why you can see score difference between the three in the presence of identical data).

Youngest account on new files like yours will see a gain at 3 months, for my daughter it's been 5 points, she also got 3 points when it reached 6 months.
There is also universal gain when youngest reaches a year but that's a long time lol.
It tends to be very significant compared to others, typically around 20 points or more. P