topic Re: Anyone know ? in Understanding FICO® Scoring

Anyone know ?

Anonymous — Sat, 12 May 2007 20:12:47 GMT

When you check your myfico reports, there is a section that states credit at a glance. In that section there is a slot that says number of accounts open in the last year. My reports state that I have 3 accounts in this section.

Those 3 accounts will be a year old and fall out of that catergory in 06/2007. Myfico reports are saying that this is one of my negative factors in another section of the report ( too much new credit)

So my question is when they become one years old, do you receive a score boost for length of credit history?

Re: Anyone know ?

Anonymous — Sat, 12 May 2007 22:06:12 GMT

Maybe a modest boost. Credit scores are like fine wine -- you don't see significant changes over short periods of time. You have to let them ferment for many years. High FICO scorers have accounts between 6 - 12 years old.

Re: Anyone know ?

fused — Sat, 12 May 2007 22:53:46 GMT

masdeocho wrote:
Maybe a modest boost. Credit scores are like fine wine -- you don't see significant changes over short periods of time. You have to let them ferment for many years. High FICO scorers have accounts between 6 - 12 years old.

Not so sure I agree with you on this. My oldest TL is a paid off auto loan. It opened in 05/2002 and paid in full with never a late payment in 06/2006. I opened an unsecured Visa with a 2k limit and a Macy's with a $400 limit in 12/05. Then in 02/06 opened another Visa with FIA (formerly MBNA) with a measly $500 limit. In 12/06, pre-approved for an AMEX Blue with 4.8K limit. Finally, just last April was pre-approved for an AMEX Rewards Plus Gold Card (no pre-set limit, well supposedly). Moreover, I have 8 inq's on EQ, 6 on EX and 2 on TU. Keep in mind, I have 0 derog's, no late on any of these TL's listed. I have dramatically increased the CL's on all of these cards with only 10 to 15 point increases in my scores. Now my EQ and TU are 783 and 804 respectively, EX is lower at 755. This is because EX is the only one not showing old, in good standing AMEX accounts with me as an AU. But with my short credit history of only 5 years and most of my TL's less than 2 years reporting on EX, I would say 755 is quite good, I must be luckily....Or maybe FICO may just shoot out numbers arbitrarily.

Re: Anyone know ?

Tuscani — Sat, 12 May 2007 23:08:19 GMT

I agree with you both. Age is VERY important, but not required to have a stellar score.

Re: Anyone know ?

Anonymous — Sat, 12 May 2007 23:24:39 GMT

I thought the OP meant that all he/she had was 3 TLs and they were < 1 year old, which is why I waxed philosophic about wine. There's no way to compare his/her situation to anyone else's without more information.

Re: Anyone know ?

Anonymous — Sat, 12 May 2007 23:39:56 GMT

I have 9 years of credit history. I just noticed that the myfico reports has a section where it list the number of accts opened in the last year. The 3 accts that I have listed there will be removed from that section next month.

Myfico takes into account the # of inquires in this last 12 months and excludes the rest, so I was just wondering if when those accounts become 1 year of age do you receive any points?

Re: Anyone know ?

fused — Sat, 12 May 2007 23:42:40 GMT

It has been mentioned on other websites, I believe one of them is bankrate.com, that FICO scores will be minimally impacted by positive cc tl's after they have aged for more than 3 years. There is some reason to suggest this may be true. Look at what FICO says about credit history:

FICO says your history makes up 15% of your total score. Furthermore, FICO says you can "achieve" a high score with a short history if one's report shows responsible credit management (i am trying to paraphrase, this is not plagiarism... been out of college for too many years...almost like I have never written a term paper).

Re: Anyone know ?

fused — Sat, 12 May 2007 23:49:09 GMT

jdeezy wrote:
I have 9 years of credit history. I just noticed that the myfico reports has a section where it list the number of accts opened in the last year. The 3 accts that I have listed there will be removed from that section next month.

Myfico takes into account the # of inquires in this last 12 months and excludes the rest, so I was just wondering if when those accounts become 1 year of age do you receive any points?

I would have to say definitely yes! How much not sure! Mine went up between 10 to 15 on all three CRA's after cc's aged one year. Of course there were no baddies. Forcing the cc's into CLI's will only help you too. Push them to give you more or threaten to close your cards with them. I used this tactic. Tuscani or Brammy might know more!!!

Re: Anyone know ?

Anonymous — Sat, 12 May 2007 23:56:13 GMT

Thanks everyone! I only have one baddie that I have to GW. (30 day late due to mail delivery mishap).................but the rest is perfect!

Re: Anyone know ?

Anonymous — Sun, 13 May 2007 20:34:26 GMT

My guess is that you're ranked relative to other people who also have new credit, and as your accounts age, you'll tend to be ranked more favorably (since new accounts are something of an unknown factor). So, in that sense, score improvement is continuous and not just a one-time thing.