topic Re: Are there break points for Average Age of Accounts? in Understanding FICO® Scoring

Are there break points for Average Age of Accounts?

Anonymous — Wed, 29 Aug 2007 03:00:54 GMT

I don't believe that we have discussed average age in this way yet.

What do you think is the lowest average age that we can drop to before we start to see a score drop? Or do you think it is 1 or 2 points per year up to 10 years? I want to open several new accounts, but don't want to hurt my score too much in the process relating to loss of average age. Right now I am at 6.5 years for my average age. I have not noticed a score drop from 8 years to 6.5 with the addition of my new history. But how much further can I push it before average starts to do some hard damage?

Re: Are there break points for Average Age of Accounts?

MidnightVoice — Wed, 29 Aug 2007 03:08:33 GMT

MidnightVoice wrote:

MidnightVoice wrote:
From MyFico:

FICO High Achievers have credit scores of 760 or above.

FICO High Achievers opened their most recent account 27 months ago, on average

FICO High Achievers opened their oldest account 19 years ago, on average.

Most FICO High Achievers have an average age of accounts between 6 and 12 years.

For FICO High Achievers the ratio of revolving balances to credit limits is 7%, on average.

FICO High Achievers opened their first revolving account 19 years ago, on average.

Re: Are there break points for Average Age of Accounts?

MidnightVoice — Wed, 29 Aug 2007 03:09:09 GMT

ilovepizza wrote:
I don't believe that we have discussed average age in this way yet.

What do you think is the lowest average age that we can drop to before we start to see a score drop? Or do you think it is 1 or 2 points per year up to 10 years? I want to open several new accounts, but don't want to hurt my score too much in the process relating to loss of average age. Right now I am at 6.5 years for my average age. I have not noticed a score drop from 8 years to 6.5 with the addition of my new history. But how much further can I push it before average starts to do some hard damage?

By the look of my previous post you are on the cusp of a drop due to age

Re: Are there break points for Average Age of Accounts?

Anonymous — Wed, 29 Aug 2007 03:43:03 GMT

Do we have anyone who has tested this or has seen an unexplained score change when they change to or from 6 years as an average age? I found the link too on MyFICO that says 6-12 years. But that might just be an average or medium from higher scores. Has anyone seen an actual score drop more than usual as they lowered their average age?

Re: Are there break points for Average Age of Accounts?

MidnightVoice — Wed, 29 Aug 2007 03:48:15 GMT

If age lowers dramatically it will presumably because either a bunch of account go away (unusuual) or because someone got half a dozen new cards all at one. In the latter case the inqus and new credit would be a big hit, so it would be difficult to say what is what.

Best course of action - only get one new card every 6 years to keep average up

Re: Are there break points for Average Age of Accounts?

Anonymous — Wed, 29 Aug 2007 03:48:30 GMT

I am about to drop below 6 years with my next loan account. Wondering what will happen? I guess I will find out one way or another. Any ideas? What would happen if I drop below 5 years?

Re: Are there break points for Average Age of Accounts?

Anonymous — Wed, 29 Aug 2007 03:55:17 GMT

@MidnightVoice wrote:
If age lowers dramatically it will presumably because either a bunch of account go away (unusuual) or because someone got half a dozen new cards all at one. In the latter case the inqus and new credit would be a big hit, so it would be difficult to say what is what.
Best course of action - only get one new card every 6 years to keep average up

Then their is an advantage of having "lots and lots" of credit cards to keep up the age in the long run.

Message Edited by ilovepizza on 08-28-2007 08:55 PM

Re: Are there break points for Average Age of Accounts?

Anonymous — Wed, 29 Aug 2007 04:26:04 GMT

I dropped 15 points when my avg age when from 6.5 to 5.5 years. EX drropped 20 points when my Avg age dropped bellow 5 years. (4 accounts were deleted) This also includes removing 20+ lates.

This why I was so mad at the SL company when they said the "Had" to report 2 accounts after my consolidation.

Funny that TU say's Positive for Avg age and and length and EX and EQ has it marked against me.