topic Re: 20 yrs and NADA in Understanding FICO® Scoring

20 yrs and NADA

Imhotrodcrazy — Thu, 01 Mar 2012 20:15:03 GMT

Well, my oldest account, ( a paid off mortgage ), turned 20 yrs old today and there was absolutely no change in my TU Fico score. You would have thought they could have given me something, even if it was just 1 point. Nothing has changed from previous reports. I have 7 yrs aaoa and always maintain < 1% reporting on one cc. Just thought I would pass this along to the number crunchers out there.

Re: 20 yrs and NADA

RobertEG — Thu, 01 Mar 2012 23:46:27 GMT

My speculation....

First, length of credit is only a 15% scoring category, and age of oldest is only part that 15%. Length of credit also scores AAoA, and new accts.

So the impact of oldest acct is most likely less than 10% of your scoring.

Second, at that high an age, it may have reached a point where it has "maxed" its benefit

My bigger concern would be if and when that account disappears totally from your CR, which will result in a decrease in the age of your oldest account.

The CRAs have an arbitrary policy of deleting accounts after approx ten years from closure. It seems to be done sporadically on their part.

I, for one, had an old acct posting at 17 years after closure. Lo and behold, it disappeared one day.

Someday it is apt to happen.

Re: 20 yrs and NADA

Imhotrodcrazy — Fri, 02 Mar 2012 00:48:32 GMT

Robt.,

I like your analogy and I highly respect your views and thoughts on these subjects. I am sure you are right in your speculation. I am also concerned about the time line for it remaining on my credit report too. The 20 yr old account was closed in 2005. I agree with your assessment of the crb's getting rid of these closed accounts sporadically within the so called 10 yr time line. I had/have 2 other closed accounts from 2005 that were dropped from my EQ report a couple of months ago after only 7 yrs, however, they still remain on my TU and EX reports. Those 2 dropped accounts from EQ cost me a total of 24 yrs of account history and dropped my aaoa from 7 yrs to 5 yrs. If EQ drops this 20 yr old account after only 7 yrs, that means it will drop off in a couple of months, and it will erode my aaoa even further to only 3 yrs. That would be quite a drop from 7 yrs to 3 yrs aaoa in a very short time. I don't think that it is right that a person should be damaged in this way after working hard for so many years to prove himself. Thank you for your comments Robt, as always, it is greatly appreciated.