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Aging period and how Fico reacts

AzCreditGuy
Frequent Contributor

Aging period and how Fico reacts

I may need a lesson again, below I assume is a middle ground of new credit being opened with my oldest credit card the other screen shot is the true age of my new credit, how are these making my Fico react as they are 2 different mixes? And which one will rebucket after 3 years? 

 

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35 REPLIES 35
AndySoCal
Valued Contributor

Re: Aging period and how Fico reacts

My advice on the length credit history I would stay in the garden for quite a while.You need to give those new accounts time to age. My average age of accounts per Equifax is 14 years and  1 month.  That number is higher than the other bureaus due to a credit card my first one is still reporting after being closed now for 10 plus years opened in 1982.  The second one (amount of new credit) I would not pay that much attention to it.  Only apply the credit you need.

FICO 8 EX 794 TU 794 EF 805
Discover IT Opened 9/1990 CL 19,000, JC Penney Opened 10/2008 CL 4700, US Bank Cash Plus Opened 8/2010 CL 12000, Citibank Double Cash Opened 5/2015 CL 11,100, Chase Freedom Flex Opened 09/2020 CL 10,500
Message 2 of 36
AzCreditGuy
Frequent Contributor

Re: Aging period and how Fico reacts

I went on my credit spree in 2019 and I will not obtain anymore credit, unless its on the business side. I have been in the garden since July 2019. I just paid off a Barclays card and it will never get use and has been cut up lol. I was wondering which age is the one I should be watcing though....Average age seems to be the one? 

Message 3 of 36
CassieCard
Senior Contributor

Re: Aging period and how Fico reacts


@AzCreditGuy wrote:

I may need a lesson again, below I assume is a middle ground of new credit being opened with my oldest credit card the other screen shot is the true age of my new credit, how are these making my Fico react as they are 2 different mixes? And which one will rebucket after 3 years? 


AoOA and/or AoORA (Age of Oldest Revolving Account) are the ones to watch for scorecard reassignment.

 

So many people start out with a revolving account (credit card) that it's hard to tell which one is repsonsible for some of the scorecard changes. In 11 days I will be at AoOA 3yrs0mo with AoORA 2yrs0mo and I'll be watching it very closely.

 

AAoA 2yrs 0mo might be worth +20pts according to some posts on this forum. That won't be a scorecard switch, though.

You would see it on December 1st, since you're at 1yr 11mo now.

 

I'll hit AAoA 2yrs 0mo in March, so I'll be interested to see what happens to your scores.

28 FICO Scores + FICO RESilience Index + 3 VS3. MTG (Mortgage), AUT (Auto), and BKC (Bankcard) are scores 5,4, and 2 from the top.

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Message 4 of 36
AzCreditGuy
Frequent Contributor

Re: Aging period and how Fico reacts


@CassieCard wrote:

@AzCreditGuy wrote:

I may need a lesson again, below I assume is a middle ground of new credit being opened with my oldest credit card the other screen shot is the true age of my new credit, how are these making my Fico react as they are 2 different mixes? And which one will rebucket after 3 years? 


AoOA and/or AoORA (Age of Oldest Revolving Account) are the ones to watch for scorecard reassignment.

 

So many people start out with a revolving account (credit card) that it's hard to tell which one is repsonsible for some of the scorecard changes. In 11 days I will be at AoOA 3yrs0mo with AoORA 2yrs0mo and I'll be watching it very closely.

 

AAoA 2yrs 0mo might be worth +20pts according to some posts on this forum. That won't be a scorecard switch, though.

You would see it on December 1st, since you're at 1yr 11mo now.

 

I'll hit AAoA 2yrs 0mo in March, so I'll be interested to see what happens to your scores.

 

Thanks Cassie I have so no things going on with my scores its annoying they were all at one point close to each other the highest being 782 now as of 11/15/20 Ex 776 Equifax 748 TU 754 

 

I just paid off Barclays and that give me 6 pts with EX so not im back at 782 with them, the others unsure. It seems the more I am getting closer to pay off my debts the more scores are affected by little things. Hmm interesting you say I could get a 20+ pt increase in Dec when I hit 2 years? I expected another bump since I applied $950 to my personal taking it below 8% for UTI. 


 

Message 5 of 36
AndySoCal
Valued Contributor

Re: Aging period and how Fico reacts

Here are links to two articles related to Average age of accounts.

They are different in the approach to the question(s) about average of accounts

 

https://www.creditcards.com/credit-card-news/average-credit-account-age-fico-score-1586/ 

 

https://www.nerdwallet.com/article/finance/credit-age-length-of-credit-history 

FICO 8 EX 794 TU 794 EF 805
Discover IT Opened 9/1990 CL 19,000, JC Penney Opened 10/2008 CL 4700, US Bank Cash Plus Opened 8/2010 CL 12000, Citibank Double Cash Opened 5/2015 CL 11,100, Chase Freedom Flex Opened 09/2020 CL 10,500
Message 6 of 36
Birdman7
Super Contributor

Re: Aging period and how Fico reacts

Age of oldest account is the scorecard segmenter, as is age of youngest Revolving Account.

Refer to the Scoring Primer linked at the top of my signature for detailed information.
-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.

RIP:

(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 7 of 36
AzCreditGuy
Frequent Contributor

Re: Aging period and how Fico reacts

@CassieCard Seems you were right I did get a huge bump from aging, once I hit the 6 year mark on my oldest card I got over 800. Personal loan still hasnt updated to below 8% UTI and some other card info as well...

 

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Message 8 of 36
Birdman7
Super Contributor

Re: Aging period and how Fico reacts


@AzCreditGuy wrote:

@CassieCard Seems you were right I did get a huge bump from aging, once I hit the 6 year mark on my oldest card I got over 800. Personal loan still hasnt updated to below 8% UTI and some other card info as well...

 

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@AzCreditGuy So when your oldest revolver hit six years, you got 21 points?

-Our Community’s updated scoring wisdom: Link to Scoring Primer.
-For Negative Reason Codes see: CassieCard’s Score Factors thread.
-ccquest’s workbook to calculate metrics for you: Link to Workbook.

Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.

RIP:

(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 9 of 36
AzCreditGuy
Frequent Contributor

Re: Aging period and how Fico reacts


@Birdman7 wrote:

@AzCreditGuy wrote:

@CassieCard Seems you were right I did get a huge bump from aging, once I hit the 6 year mark on my oldest card I got over 800. Personal loan still hasnt updated to below 8% UTI and some other card info as well...

 

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@AzCreditGuy So when your oldest revolver hit six years, you got 21 points?


@Birdman7  I got a huge bump from all the 3 big  EX +21 EQ +37 TU +36,  Personal loan has not posted at 8% and 2 credit cards have been paid off(not showing) Changes would be 2 cards showing  $0 balances as opposed to all being used and the credit history changing

 

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Message 10 of 36
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