Well done and welcome to myFico 
@ChiTownTony wrote:
Thank you again so much. That oldest account was closed in 2008. So I'm not sure why it's still on there.
so you are saying in two years I'm going to basically get my brains beat out? LOL. how many points do you think I'll be looking at then if everything else stays the same?
Consider yourself lucky that that oldest account is still there -- it slipped between the cracks -- it does happen sometimes; maybe you'll get lucky on the others also (but I doubt it) --I'll keep my fingers crossed for you!!
Yes. If/when those old closed accounts fall off -- you're going to get hit pretty hard. I have no idea how many points you may lose. I think there are AAoA thresholds at 78, 72, and 60 months (it varies by profile/scorecard and we only have data points as reported by forum members to determine possible thresholds) -- so you'll drop below those and lose some points because of it. We also have to consider that the loss of age will also cause a FICO scorecard reassignment -- you can search that topic on the forums to understand it better -- but basically, FICO has scorecards to which everyone is assigned based on profile similarities. Right now, you're on ascorecard with others that have clean, thin, aged reports and your scores are calculated based on how you compare to other profiles on the same scorecard. Once you lose the age -- assuming everything else stays the same -- you'll likely be moved to a different scorecard with others that have clean, thin, and less-aged reports -- your AoOa may save you a bit because that will still be quite high. So you may not be in with "young" files, but somewhere in between. We don't have enough info on scorecards to determine how many points are gained/lost when moving between them.
I'd guess a 25-30 point drop (could be less -- doubt it'd be more than 30). Which isn't that bad in the grand scheme of things... but it will take a while to recover because only time can heal that. Search the forums for "oldest account drop off" or "lost my oldest account" and see the heartache... it'll give you an idea of how it affects scores.
Man, you really know this stuff.
I guess I just need to wait it out. I'll have 2 years to somehow boost my scores by 30-50 to regain where I am now which is 770-790 ish. I was hoping to break 800.
I guess I just need to wait it out. I'll have 2 years to somehow boost my scores by 30-50 to regain where I am now which is 770-790 ish. I was hoping to break 800.
820+
You can still break 800. You just won't hit 850 for a while. But 800-820 is absolutely doable - even after those old ones fall off. Keep your AAoA above 3 years at all costs - if you can get to, and keep it above, 5 years, that's even better. This means you need to recalculate every time you consider adding a new account. And keep your oldest open for as long as possible while your newest accounts age.
This is why people add new accounts so often and within a close time frame. Doing so keeps your AAoA solid so adding new accounts don't drop it by more than a few months, and, if you close a card - the next oldest is close behind so when the closed one falls off, your scores won't suffer much, if at all.
And oh - the other thing I meant to mention...
you stated that your only open revolving account - PayPal - had a zero balance. All revolvers at zero is a FICO no, no. FICO penalizes for 'No revolving credit usage' to the tune of 10-20 points. Always let at least one revolving account report a balance - a tiny balance of $10 will work.
I really appreciate your help. I just paid off my balance yesterday so I will have no problem adding $10 to the account before they report it. PayPal reports on the 25th of each month so I will be okay there.
I do not plan on opening any other accounts unless as I mentioned it would be a car alone. But I doubt that will happen. So actually you've given me some encouragement.
now I do have a question. You wrote that if my two oldest accounts were to drop off today my average would be 3.9 years correct? So that would mean in 2 years when my oldest account does drop-off I would be a 5.9 years? Am I correct there?
I do not plan on opening any other accounts unless as I mentioned it would be a car alone. But I doubt that will happen. So actually you've given me some encouragement.
now I do have a question. You wrote that if my two oldest accounts were to drop off today my average would be 3.9 years correct? So that would mean in 2 years when my oldest account does drop-off I would be a 5.9 years? Am I correct there?
@ChiTownTony wrote:
I really appreciate your help. I just paid off my balance yesterday so I will have no problem adding $10 to the account before they report it. PayPal reports on the 25th of each month so I will be okay there.
I do not plan on opening any other accounts unless as I mentioned it would be a car alone. But I doubt that will happen. So actually you've given me some encouragement.
now I do have a question. You wrote that if my two oldest accounts were to drop off today my average would be 3.9 years correct? So that would mean in 2 years when my oldest account does drop-off I would be a 5.9 years? Am I correct there?
Yes. Exactly. Without the two oldest, your AAoA will be 5.9 years in 2 years.
I'm going to send you a private message in a bit - it'll be a link to download my Excel AAoA calculator (if you want it). It's super easy to use. You'll see a notification above the mail (envelope) icon when I send it.
That would be great!!!
@Thornback
I’d love to get that calculator also, if you’d be willing.
I’m in the same boat as ChiTown. I quit using credit for nearly 15 year. I have a 17 year mortgage and my next oldest account is 1 yr 9 months. My AAoA is less than 3 years now, so it has dinged my credit pretty good. Part of the reason I went on my current spree is that I’ll have a bunch of new accounts that will all be over 3 years when my mortgage is paid off. I’ve tried to be selective and get cards that I’ll keep long term so this won’t be a problem later on.
I’d love to get that calculator also, if you’d be willing.
I’m in the same boat as ChiTown. I quit using credit for nearly 15 year. I have a 17 year mortgage and my next oldest account is 1 yr 9 months. My AAoA is less than 3 years now, so it has dinged my credit pretty good. Part of the reason I went on my current spree is that I’ll have a bunch of new accounts that will all be over 3 years when my mortgage is paid off. I’ve tried to be selective and get cards that I’ll keep long term so this won’t be a problem later on.
