cancel
Showing results for 
Search instead for 
Did you mean: 

5 yr Gap Without Credit

tag
kuku4koco
Frequent Contributor

5 yr Gap Without Credit

I have a 16 yr old (closed) Mortgage about to fall off my reports... It's also my oldest account.  UGH...  

 

I went 5 years without credit after filing Bankruptcy in 2010.  Everything else I had, has aged off already.  There will be a significant gap in Age of Accounts... (not really a gap... it's like I completely started out 'new kid on the block' style 2015).

 

Expecting I need to brace myself for the hard hit ??  My AAOA is very young already... 2 yrs. 10 mos.  

 

I should be fine where credit mix is concerned 10%... with a newish car loan... Just wondering about the overall hit from loss of oldest account?



EQ: 731 TU: 705 EX: 715

Cap1 QS: 9k USBank: 7k Amex BCE: 14.1k BoA: 8k Discover: 4.4k CareCredit: 12k *Various Store Cards: 18.7k
Message 1 of 13
12 REPLIES 12
Anonymous
Not applicable

Re: 5 yr Gap Without Credit

I'm unclear as to how many accounts you have currently on your report, but open and closed.  Originally when reading your post I thought that the mortgage falling off was your only account, but then you mentioned a current auto loan.  If you could list out all of the accounts you have, open and closed that are on your credit report it would be helpful. 

 

When the mortgage comes off, what will your new AoOA be... that is, what will be the oldest account remaining on your CR, open or closed?  The AAoA hit may be significant enough here to impact your score some, but the AoOA hit could be far greater and impact your score card assignment.  I ask about your other accounts, because generally the thicker your file the more stable your profile is to an event such as your oldest account falling off.

Message 2 of 13
Anonymous
Not applicable

Re: 5 yr Gap Without Credit


@kuku4kocowrote:

I have a 16 yr old (closed) Mortgage about to fall off my reports... It's also my oldest account.  UGH...  

 

I went 5 years without credit after filing Bankruptcy in 2010.  Everything else I had, has aged off already.  There will be a significant gap in Age of Accounts... (not really a gap... it's like I completely started out 'new kid on the block' style 2015).

 

Expecting I need to brace myself for the hard hit ??  My AAOA is very young already... 2 yrs. 10 mos.  

 

I should be fine where credit mix is concerned 10%... with a newish car loan... Just wondering about the overall hit from loss of oldest account?


Reading the two highlighted sentences, our OP is going from an Age of Oldest = 16 to Age of Oldest = 2.6.  (It might be anywhere from 2.3 to 3.1.)

 

We don't know for sure.  My guess is that this hurts a score more if a profile is clean (no derogs).  Our OP has a serious derog (namely a BK) so my guess is that the impact will not be as severe,

 

The good news is that our OP will have his or her BK falling off in a couple years which will help the score a lot.

Message 3 of 13
kuku4koco
Frequent Contributor

Re: 5 yr Gap Without Credit


@Anonymouswrote:

I'm unclear as to how many accounts you have currently on your report, but open and closed.  Originally when reading your post I thought that the mortgage falling off was your only account, but then you mentioned a current auto loan.  If you could list out all of the accounts you have, open and closed that are on your credit report it would be helpful. 

 

When the mortgage comes off, what will your new AoOA be... that is, what will be the oldest account remaining on your CR, open or closed?  The AAoA hit may be significant enough here to impact your score some, but the AoOA hit could be far greater and impact your score card assignment.  I ask about your other accounts, because generally the thicker your file the more stable your profile is to an event such as your oldest account falling off.


BBS,

 

I have 20 other accounts (open), I would assume that would be considered a 'thick' file.  (with this mtg closed, that will total 11 accounts 'closed' for a total of 31 accounts).



EQ: 731 TU: 705 EX: 715

Cap1 QS: 9k USBank: 7k Amex BCE: 14.1k BoA: 8k Discover: 4.4k CareCredit: 12k *Various Store Cards: 18.7k
Message 4 of 13
kuku4koco
Frequent Contributor

Re: 5 yr Gap Without Credit


@Anonymouswrote:

@kuku4kocowrote:

I have a 16 yr old (closed) Mortgage about to fall off my reports... It's also my oldest account.  UGH...  

 

I went 5 years without credit after filing Bankruptcy in 2010.  Everything else I had, has aged off already.  There will be a significant gap in Age of Accounts... (not really a gap... it's like I completely started out 'new kid on the block' style 2015).

 

Expecting I need to brace myself for the hard hit ??  My AAOA is very young already... 2 yrs. 10 mos.  

 

I should be fine where credit mix is concerned 10%... with a newish car loan... Just wondering about the overall hit from loss of oldest account?


Reading the two highlighted sentences, our OP is going from an Age of Oldest = 16 to Age of Oldest = 2.6.  (It might be anywhere from 2.3 to 3.1.)

 

We don't know for sure.  My guess is that this hurts a score more if a profile is clean (no derogs).  Our OP has a serious derog (namely a BK) so my guess is that the impact will not be as severe,

 

The good news is that our OP will have his or her BK falling off in a couple years which will help the score a lot.


CGID,

You are exactly right...

Thank you for your input... never thought there'd be an advantage to having a 'dirty' file.. LOL!! 

Hopefully, the hit won't be too severe then.  Thanks again!



EQ: 731 TU: 705 EX: 715

Cap1 QS: 9k USBank: 7k Amex BCE: 14.1k BoA: 8k Discover: 4.4k CareCredit: 12k *Various Store Cards: 18.7k
Message 5 of 13
Anonymous
Not applicable

Re: 5 yr Gap Without Credit

20 open accounts definitely constitutes a thick file.  So, OP, you've opened those 20 accounts in the last 2.5 years?  Will your AoOA indeed be dropping from 16 years to 2.something years?  I know you said there was a 5 year gap, but that's looking more like a 13-14 year gap.  Remember, even a closed account that's still on your credit report counts toward AoOA... so if you have an account that you opened in say 2008 that you closed in 2010, you've got a 10 year old account being factored into your file for FICO purposes. 

Message 6 of 13
kuku4koco
Frequent Contributor

Re: 5 yr Gap Without Credit


@Anonymouswrote:

20 open accounts definitely constitutes a thick file.  So, OP, you've opened those 20 accounts in the last 2.5 years?  Will your AoOA indeed be dropping from 16 years to 2.something years?  I know you said there was a 5 year gap, but that's looking more like a 13-14 year gap.  Remember, even a closed account that's still on your credit report counts toward AoOA... so if you have an account that you opened in say 2008 that you closed in 2010, you've got a 10 year old account being factored into your file for FICO purposes. 


BBS,

 

Yes and Yes... Ouch!! I had to go back and look (dig)... Looks like a closed account that opened in 2011 might soften the blow (?)... geesh!!  Thanks for your help!



EQ: 731 TU: 705 EX: 715

Cap1 QS: 9k USBank: 7k Amex BCE: 14.1k BoA: 8k Discover: 4.4k CareCredit: 12k *Various Store Cards: 18.7k
Message 7 of 13
Anonymous
Not applicable

Re: 5 yr Gap Without Credit

I would say so, as that means your AoOA can't drop below 7-8 years, which is far better than 2 years.

 

So, you didn't open any accounts at all between that mortgage and the account you opened in 2011 then, correct?  That would be a period of nearly a decade, say 2002-2011?

Message 8 of 13
kuku4koco
Frequent Contributor

Re: 5 yr Gap Without Credit


@Anonymouswrote:

I would say so, as that means your AoOA can't drop below 7-8 years, which is far better than 2 years.

 

So, you didn't open any accounts at all between that mortgage and the account you opened in 2011 then, correct?  That would be a period of nearly a decade, say 2002-2011?


BBS,

 

WOW.... No there aren't any more accounts... (there was a Target charge opened in 2006, closed at my ex husbands request...It has since aged off my report..I found it in last years report.. It's not on this years. (6 accounts aged off last year).

 

A decade... geez... time flies... 

 

 



EQ: 731 TU: 705 EX: 715

Cap1 QS: 9k USBank: 7k Amex BCE: 14.1k BoA: 8k Discover: 4.4k CareCredit: 12k *Various Store Cards: 18.7k
Message 9 of 13
Anonymous
Not applicable

Re: 5 yr Gap Without Credit

It sure does.  At least in going from an AaOA of 16 years to 7-8 years (verses 2) you're in a better place that you originally anticipated.

Message 10 of 13
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.