cancel
Showing results for 
Search instead for 
Did you mean: 

Account Age vs Damage From Account

Mystik1
Contributor

Account Age vs Damage From Account

Let's say your oldest account is 20 years old.  Next oldest account is 9 years old.  Let's say the credit file is not thick (adequate, but not thick).  Active accounts include 4 credit cards - one less than a year old, one less than 2 years old, one 5 years old, and one 9 years old, an auto loan, tires loan, and 2 (unfortunately) Affirm loans...I didn't know until recently that they're bad for your credit. That's all that's currently open.  Auto loan and tires loan still considered new.  

 
Now let's say that oldest account, 20 years old, has a foreclosure.
 
Would the scores be better keeping the 20 year account or getting rid of the foreclosure account (if possible)?
Message 1 of 8
7 REPLIES 7
AllZero
Super Contributor

Re: Account Age vs Damage From Account

In general, you want to be on a clean score card. Any derogatory or delinquency will suppress your scores.

 

I would recommend reading the below from Birdman7


General Scoring Primer and Version 8 Master Thread rev.5.17.20

Message 2 of 8
Mystik1
Contributor

Re: Account Age vs Damage From Account

Wow.  Thanks much for the info.  Quick follow-up.  What does segmentation factor really mean in this context?

Message 3 of 8
AllZero
Super Contributor

Re: Account Age vs Damage From Account

In general, it means get rid of the foreclosure account (if possible).
Message 4 of 8
Mystik1
Contributor

Re: Account Age vs Damage From Account

Oh, I got that part when it said oldest account was not a factor.  Just wondered about what the rest meant then as far as what it is used for then and why sites, even MyFICO, make it look like it's a factor..

Message 5 of 8
AllZero
Super Contributor

Re: Account Age vs Damage From Account

Age of accounts, e.g. AAoA, AoOA, AoYRA, etc. are important factors. 9 year old account should be sufficient to get one into the 800s.

As noted in the link, see post 4, some are scoring factors, some are segmentation (score card reassignment) factors.

It's when one is reaching for 850s is when age factors is very important if thresholds are met. Same could be said with 800s, 760s, etc.
Message 6 of 8
M_Smart007
Epic Contributor

Re: Account Age vs Damage From Account


@AllZero wrote:
In general, it means get rid of the foreclosure account (if possible).

I would agree on getting rid of the foreclosure, even if that means getting rid of the account as a whole.

Message 7 of 8
Mystik1
Contributor

Re: Account Age vs Damage From Account

Thanks much for the feedback.  Appreciate it!

Message 8 of 8
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.