topic Revolving Accounts in General Credit Topics

Revolving Accounts

CreditBob — Wed, 12 Dec 2012 04:16:02 GMT

I few months ago I got a letter from a creditor when I had applied for credit. So can anyone tell me when this would no longer be an issue on my credit report.

LENGTH OF TIME REVOLVING ACCOUNTS HAVE BEEN ESTABLISHED

LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED

So when are revolving accounts or any type of accounts considered established? After how many years?

OPEN ACCOUNTS

1 VISA 6 Y 5 M 1 VISA 6 Y 1 M 1 LINE OF CREDIT 6 Y 1 M MC 2 Y 8 M MC 2 Y 8 M VISA 2 Y 9 M

1 AUTO LOAN 1 Y 9 M

I have also had other loans as well. 5 y 11 m I got an installment loan.

So based on this information can anyone tell me the minimum time for an established account?

Re: Revolving Accounts

Anonymous — Wed, 12 Dec 2012 04:48:33 GMT

Were you denied credit because of those two reasons? Cuz that confuses me too.

Are these accounts you listed the accounts that were on the CRs that the creditor looked at?

Based on what you listed, I am confused. Seems like those reasons and those accounts you listed don't seem to add up.

I think that LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED may refer to AAoA. Not sure tho. But if AAoA if low then that would make sense.

Re: Revolving Accounts

RobertEG — Wed, 12 Dec 2012 21:17:31 GMT

I dont see them identified as reasons for denial, but simply as reporting of their lenght of time since opening.

Does the creditor identify these as reasons for denial?

Re: Revolving Accounts

CreditBob — Wed, 12 Dec 2012 21:32:21 GMT

It's the reason risk codes that are supplied by the credit bureau & not the creditor. So in other words how long does it take for a new account to be considered an established account by the credit bureau standards?

Re: Revolving Accounts

llecs — Thu, 13 Dec 2012 00:29:45 GMT

@CreditBob wrote:
It's the reason risk codes that are supplied by the credit bureau & not the creditor. So in other words how long does it take for a new account to be considered an established account by the credit bureau standards?

They could either be basing this on a FICO score, their own internal score, or based on the report itself. I've seen those same codes myself though used with a FICO and without.

If it's FICO-based, then know that it's a YMMV thing. It will vary between folks because of scoring buckets. A 6-yr history, based on what you posted anyway, is a relatively young history. I don't know when that'll go away, but it can certainly vary based on your credit. Some in here have posted that with a history at 20 or so years. Just means relatively speaking, their history is younger than others based on those who have a similar profile.

If internal score-based, then anything can go as you know. There are no scoring standards.

If report-based, then again it's based on the interpretation of data by the lender.

In all of the above, it depends on how the lender sees things. I've been approved with util above 50% for some credit items. I've had other lenders turn me down due to high util depsite having it at 15% or so. Likewise, someone with a 6 yr history might be fine for some lenders, but others may see it as a liability. YMMV.

Re: Revolving Accounts

AndySoCal — Thu, 13 Dec 2012 03:26:39 GMT

Here is link that you might find useful in answering your question

http://www.scoreinfo.org/FICO-Scores/Pages/Score-Factors.aspx

Re: Revolving Accounts

CreditBob — Thu, 13 Dec 2012 05:37:15 GMT

Thank you, you actually had the answer that I was looking for.