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3 months seems to be key for aging on my profile

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Regular Contributor

3 months seems to be key for aging on my profile

I had a very thin profile with only 1 cc when I started my app spree back in August. I got 2 new cc in August and 3 more in September. I dropped from AAoA of almost 3 years to 1 year 5 months and my scores dropped. I didn't lose much from inq because I only received 2 on each report. My Ficos dropped on all 3 reports by 50-70 points. When my 2 cards from August hit 3 months in November, my scores jumped 15 points. When the next 3 hit 3 months on 12/1 my scores jumped up again. My fico 9 TU and EQ are right where they were when I began my spree and my Ex 8 is only down 10 points. And this is with me adding a new auto loan that hit in December as well. So my AoYA is 1 month at this point.

 

All other things are equal essentially. The aging is the main difference. I have been using AZEO as well. But from another post I made I learned that isn't affecting my scores on 8&9 as much as older models. And by watching my Ex daily it didn't do too much.

 

I had read that 3 months had some benefits but seemed as though 6 months and obviously 1 year were the bigger ones. I saw much better improvements than I was expecting. I can't believe that I had added 5 cc and an auto loan in the last 3+ months and scores have already recovered. 

 

Thank you all here for all I have learned from you.

2 REPLIES 2
Super Contributor

Re: 3 months seems to be key for aging on my profile

Keep in mind that when adding accounts for several months in close succession, there are a lot of moving parts going on.  I don't really believe that the FICO algorithm looks at the age of your accounts that just reached 3 months in age when you have younger 1-2 month old accounts.  AoYA is exactly that, your youngest account... so once you add more new accounts I think the age of the [slightly] older ones with respect to AoYA becomes irrelevant. 

 

I think the biggest change here based on the first sentence of your post is that you went from a very thin (1 account) file to a non-thin account, which many believe is 4+ accounts.  IMO, going from a thin to a non-thin file resulted in a solid score gain, absorbing most if not all of the points lost from the addition of a handful of new accounts and the subsequent age of accounts drops (AoYA and AAoA, both) associated with them, along with those 2 inquires per bureau.

 

Since you already have a non-thin file now, I wouldn't expect your score gains to be all too significant now over the course of the next 6-12 months.  You should see a nice gain (maybe 20 points) when your AoYA reaches 12 months, but that of course means no new accounts between now and then.

 

The other big scoring factor you can control now with multiple cards is the number/percentage of accounts with a balance reported, which can help your utilization sector of the FICO pie.  For optimal scoring, you'd want just 1 of your 5 cards to have a small balance reported where the others have a $0 balance reported.  For more information on that, look up the AZEO method.  This isn't really necessary for you currently unless you're looking to maximize score for an app (or just for fun if you'd like).  The score difference in going from 1 of 5 cards with a small reported balance verses all 5 of your cards with small reported balances could be to the tune of 15 points, give or take and depending on bureau.

Message 2 of 3
Valued Contributor

Re: 3 months seems to be key for aging on my profile

I think BBB's theory makes good sense in explaining how the comeback points may have be generated. You don't have anymore plans for apps or anything soon do you? I'd like to see how your scores change another 3 months or so from now. On another note, I do think with your recent apps and accounts it would be good to let things settle for a while now and grow/garden what you have. Just imo.
                               

Total Credit: $240,100Credit Utilization: 1%AAoA: 5 years, 7 monthsInstallments: Car Lease, Marcus LoanNegatives: 0

LOWES-35k | BOA-32.5k | AMEX-30k | DISC-27.1k | ALLIANT-25k | NFCU-25k | BARC-15k | BBUY-12k | CHASE-10k | WAL-10k | CITI-9.7k | PENFED-9.7k


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