When does New credit become not New Credit?

[DawgZ]

I recently was turned down for a recon CLI because of 'To much New Credit'. When does New credit become not New Credit?

[gdale6]

24 months in eyes of FICO, 6 mo no inquiries most likely minimum for more approvals.

[HiLine]

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@gdale6 wrote:

24 months in eyes of FICO, 6 mo no inquiries most likely minimum for more approvals.

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You probably meant 12 months for the former? Agreed on the latter.

[-Wade-]

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@DawgZ wrote:

I recently was turned down for a recon CLI because of 'To much New Credit'. When does New credit become not New Credit?

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FICO scoring considers anything under 1 year as new, though it graduates to less and less important over the months. Same for inquiries which have no effect after 1 year.

[-Wade-]

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@gdale6 wrote:

24 months in eyes of FICO, 6 mo no inquiries most likely minimum for more approvals.

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Where do you get  your 24 months info from ? if i may ask ???

[ecxpa]

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@Wade64 wrote:

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@DawgZ wrote:

I recently was turned down for a recon CLI because of 'To much New Credit'. When does New credit become not New Credit?

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FICO scoring considers anything under 1 year as new, though it graduates to less and less important over the months. Same for inquiries which have no effect after 1 year.

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This seems to be the consensus around the internet.  SOooooooooo.......if this is true why do the CRA's maintain the inquiries for TWO years.  Same thing goes for late payments.  If there effect dwindles, why keep reporting them.  It seems like a conspiracy with lenders and CRA's to keep things on a credit report.  If the individual has these things on the report the lender is "justified" in charging a higher interest rate.   I'm not sure

[-Wade-]

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@ecxpa wrote:

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@Wade64 wrote:

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@DawgZ wrote:

I recently was turned down for a recon CLI because of 'To much New Credit'. When does New credit become not New Credit?

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FICO scoring considers anything under 1 year as new, though it graduates to less and less important over the months. Same for inquiries which have no effect after 1 year.

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This seems to be the consensus around the internet.  SOooooooooo.......if this is true why do the CRA's maintain the inquiries for TWO years.  Same thing goes for late payments.  If there effect dwindles, why keep reporting them.  It seems like a conspiracy with lenders and CRA's to keep things on a credit report.  If the individual has these things on the report the lender is "justified" in charging a higher interest rate.   I'm not sure

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Late payments reports for 7 years and will always have a lil affect on your score it's just not as much as time goes by. Fico stop counting inquires after 1 year. But for Fako scores  it's 2 years. I can't answer why it works other than that;s the way it works.

[ecxpa]

You are right.......I have some  late payments (3 years)  and my scores have recovered pretty good, my TU fico is 745, my Ex Fico is 729, and my EQ Fico is 666 (I have an extra baddie on EQ from divorce) ....but I have been denied credit at times due to late payments on TU or Ex that are 3-4 years old......but over the past year I can't complain with the CL's I've been able to get.

[gdale6]

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@Wade64 wrote:

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@gdale6 wrote:

24 months in eyes of FICO, 6 mo no inquiries most likely minimum for more approvals.

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Where do you get  your 24 months info from ? if i may ask ???

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When an account turns 24 months old there is a boost in FICO for the age of the particular account also it is deemed to be fully recorded (meaning 2 yrs of its history is on file). The inquiry for the account can affect your score for up to 12 months but most of the points lost are regained within 6 months.

1) Payment History: 35%

This category includes payment history information about several different types of accounts such as credit cards, retail accounts and installment loans. Many factors are considered including number of past due items on file, amount past due on delinquent accounts or collection items and severity of delinquency (i.e. how long past due).

In determining your score, weights are assigned to each year of an individual’s payment history:

• 40% - Most recent 12 months
• 30% - Prior 12 to 24 months
• 20% - Prior 24 to 36 months
• 10% - Prior 36 to 48 months
• 0% - Older than 4 years

[-Wade-]

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@ecxpa wrote:

You are right.......I have some  late payments (3 years)  and my scores have recovered pretty good, my TU fico is 745, my Ex Fico is 729, and my EQ Fico is 666 (I have an extra baddie on EQ from divorce) ....but I have been denied credit at times due to late payments on TU or Ex that are 3-4 years old......but over the past year I can't complain with the CL's I've been able to get.

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Congrats on your cli's yeah to some lenders it don't hurt as bad as other's