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Would it make any sense to app for a non-AMEX card you want and in a mini-spree sort of way also app for AMEX if your backdating year is far enough in history to offset the AAoA dip the new non-AMEX account would trigger?
For instance, AMEX year is 1995. Non-AMEX apps would be 2013. Then app for another AMEX.
@jake619 wrote:Would it make any sense to app for a non-AMEX card you want and in a mini-spree sort of way also app for AMEX if your backdating year is far enough in history to offset the AAoA dip the new non-AMEX account would trigger?
For instance, AMEX year is 1995. Non-AMEX apps would be 2013. Then app for another AMEX.
It makes sense for FICO AAoA purposes. If successful, you do get another inquiry (denials should be SP), so I guess it depends what the weak spot of the account is, age or number of inqs.
And of course, since you don't really want the Amex card in your scenario, it should have no AF.
It's been done in the past; though admittedly I think the sweet spot on the AAoA bell curve is around 4-5 years, after which diminishing returns start adding up quickly.
As a result, if I had an established credit history, I don't think I'd bother wasting the time as new accounts are still going to be looked at in underwriting for anything serious, and backdating isn't going to fool a human regardless of what FICO says.
If I were rebuilding, well, suffice to say in my current situation I'd love to have a '95 backdate; it may not have altered the cards from Amex I obtained, but I'd have probaby have done something a little more audacious in my acquisition strategy and picked up a third card as well just for AAoA. Doesn't make sense long term, but mid-term where my theoretical mortgage will land...
So it might be a viable strategy depending on scenario. OK. I think I just get so angry eveytime I look at CK and their absurd AAoA calculation.
I suppose I could just calc it myself but I feel like I'd not do it right. Not the math part, all good there, just the inclusion and exclusion of accounts that are really supposed to be factored in that equation.
@creditballer wrote:
Question:
I currently have AAoA at 4.5yrs and I'm applying for Amex tomorrow, hoping to get the backdate of '88 when I was a member, before BK. If I get the backdate, what effect will it have on my AAoA? Thanks for any advice...iPhone
Depends what other tradelines you have (how many, and their length); however, getting a card of roughly 25 years backdating, as it's substantially higher than your current AAoA, will increase it by some amount.
Whether it makes any material difference to your score is a different issue; AAoA is a minor part of the algorithm to begin with and you're in a pretty good spot now.
@creditballer wrote:
Question:
I currently have AAoA at 4.5yrs and I'm applying for Amex tomorrow, hoping to get the backdate of '88 when I was a member, before BK. If I get the backdate, what effect will it have on my AAoA? Thanks for any advice...iPhone
Well, Average age of accounts means, um, average age of accounts. So if you currently have N reporting (open and closed) your total is 4.5N
Then when/if you get the Amex, you get an extra 25 years, so your new AAoA is (4.5N+25)/(N+1) As N gets bigger, the impact of back-dating is less.
Also, as Revelate says, it's a fairly minor part of the algorithm (ontime pay is much more important) and I think people here tend to overvalue Amex because of this feature (there may be other reasons to like Amex of course).
For stuff like mortgages, a manual review will spot that these are in fact recent trade lines and you won't get the benefit of inflated AAoA.
But within a certain AAoA/score/# of cards range, and applying for credit card products with a more automated decision making, the Amex AAoA increase can certainly help, by raising your score into a range appropriate for that card.
@bs6054 wrote:Also, as Revelate says, it's a fairly minor part of the algorithm (ontime pay is much more important) and I think people here tend to overvalue Amex because of this feature (there may be other reasons to like Amex of course).
For stuff like mortgages, a manual review will spot that these are in fact recent trade lines and you won't get the benefit of inflated AAoA.
But within a certain AAoA/score/# of cards range, and applying for credit card products with a more automated decision making, the Amex AAoA increase can certainly help, by raising your score into a range appropriate for that card.
How about things like auto loans? That's the only thing that I'm looking for later this year.
My Amex membership date is 1987 and my AAoA is between 7-8 years. Adding a no AF Amex might not do anything to help me with getting approved for an auto loan, but it seems that adding one would help to buffer the AAoA ding that would result from getting the loan.