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AU effect on AAoA FICO 08

Valued Member

AU effect on AAoA FICO 08

Pursuant to MF, it doesn’t appear my AU acct. is being calculated into my AAoA among any of the CRA‘s. I’ve researched the threads and came up inclusive. There is the position that the FICO 08 algorithm reduced, but did not eliminate, the effect of AU accounts on AAoA; however it does not appear to have any effect in my case or for others in the past threads. The effect was allegedly reduced to counter unscrupulous individuals paying others to add them as an AU to artificially increase their AAoA. There is speculation that the new algorithm correlated addresses to determine familial relation as opposed to someone paying a stranger to list them as an AU.
What I would like to know is, has anyone figured this out? Why am I not receiving any benefit from being an AU when the primary is a family member and we’ve both had the same address for over 20 years? Input please.
Bank: Retail cards : Installment (EQ only):

Payment History=100%; Utilization=under 10%; AAoA=6,5,5(EQ,TU,EX), AooA=44; Newest=under 6mo, Inq=4,2,6(EQ,TU,EX); No Baddies.
Message 1 of 24
23 REPLIES
Established Contributor

Re: AU effect on AAoA FICO 08

It varies from person to person. They have a proprietary method for determining if and how this is factored into your score. I'm an AU on 6 cards. From lots of reading on this board and abroad I haven't been able to figure it out myself. 1 of my AU accounts absolutly factors into my FICO. The others I'm unsure of. Best wishes 

Started 6/6/2018 EX - 588 ; EQ - 667 ; TU 575

Updated 12/2018


Message 2 of 24
Super Contributor

Re: AU effect on AAoA FICO 08

Either the account "counts" or it doesn't.  You're saying it doesn't and I'm not sure there's anything that can be done about that.  Is the account significantly older than your oldest account?  AU accounts are usually added for credit age depth, or AoOA as much more more than AAoA.  Where does the utilization percentage sit on this account and how does it look on your other accounts?  It's possible depending on those different utilizations that you could do a test with the AU card balance wise to determine if it indeed is being ignored by the algorithm.  Age of accounts may be a bit more difficult to test, as you're just going by what fluff front-end summary software is telling you.

Message 3 of 24
Valued Member

Re: AU effect on AAoA FICO 08

Oldest account is 44 years. This AU is 26, next oldest is 24 (only reported on Equifax) next is 10. 0% utilization retail card. Yes the front end software tells me it’s not counting it, but I don’t really know. Do you mean it either counts in all categories or counts in none? Thank you both for your comments.
Bank: Retail cards : Installment (EQ only):

Payment History=100%; Utilization=under 10%; AAoA=6,5,5(EQ,TU,EX), AooA=44; Newest=under 6mo, Inq=4,2,6(EQ,TU,EX); No Baddies.
Message 4 of 24
Community Leader
Super Contributor

Re: AU effect on AAoA FICO 08

There's a pretty easy test that leverages the fact that when all your cards report a zero balance you get a 15-20 point penalty.

 

So pay all cards to zero (including AU cards).  After all cards appear at $0 on your reports, pull your FICO 8 scores.  Then allow the AU card to report a small positive balance.  If FICO 8 is counting it, your score will rise 15-20 points.  If there is no boost, it means FICO 8 is ignoring the card and still thinks all your cards are at $0.

Message 5 of 24
Valued Member

Re: AU effect on AAoA FICO 08

@CreditGuyInDixie: Doesn’t my installment loan interfere?
Bank: Retail cards : Installment (EQ only):

Payment History=100%; Utilization=under 10%; AAoA=6,5,5(EQ,TU,EX), AooA=44; Newest=under 6mo, Inq=4,2,6(EQ,TU,EX); No Baddies.
Message 6 of 24
Community Leader
Super Contributor

Re: AU effect on AAoA FICO 08

Your loan is not a card.

Message 7 of 24
Super Contributor

Re: AU effect on AAoA FICO 08


@Birdman7 wrote:
Oldest account is 44 years. This AU is 26, next oldest is 24

I'm not sure there would be any benefit at all of having a 26 year old AU account if your oldest account is 44 years and next oldest [non-AU] is 24 years old.

Message 8 of 24
Moderator Emeritus

Re: AU effect on AAoA FICO 08

To CGID’s point there is an scoring penalty in FICO models along the lines of “no recent revolving activity”

And this is explicitly seen when all counting revolving tradelines are at $0.

If the AU is not zero with everything other revolving tradeline at $0 on reported balances, and you see a penalty (score shift or reason code) then it doesn’t count.



        
Message 9 of 24
Valued Member

Re: AU effect on AAoA FICO 08

@BBS, It will bring up my AAoA by a year, and that would help. For some reason I don’t see the include quote button, so forgive my failure to include your quote.
Bank: Retail cards : Installment (EQ only):

Payment History=100%; Utilization=under 10%; AAoA=6,5,5(EQ,TU,EX), AooA=44; Newest=under 6mo, Inq=4,2,6(EQ,TU,EX); No Baddies.
Message 10 of 24