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AoYA hit???

Your FICO® Scores can impact your loan interest rates, terms, approvals and more.
Established Contributor

Re: AoYA hit???

Great example, xaximus!!👍

Thanks for the reply!!!

😊



Starting FICO 8 Score: EQ 491
Stating FICO 8 Scores 03/17/2018
TU 483 EX 527 EQ 491
Current FICO 8 Score:
EQ 598
Goal Score: 600(within a year)


Take the myFICO Fitness Challenge














Message 11 of 25
Super Contributor

Re: AoYA hit???


@xaximus wrote:

Once you get under an AAoA of 2 years is when the impact to your score is more. As long as it's over 2 years, generally the impact is minimal, plus with every passing month, the impact lessens and your score grows. In your case, as long as you have enough old accounts to counter act the young account, you should be okay.

While I agree with your overall points regarding AAoA, your post above may suggest to some that FICO scores increase every month based on AAoA increasing by 1 month in age every month, but that's not the case.  As with many FICO scoring factors, thresholds exist at certain points.  For example, if one reaches 24 months AAoA, perhaps the next threshold isn't until 30 months, then 36 months, etc.  I just felt it was worth clearing that up.

Message 12 of 25
Valued Contributor

Re: AoYA hit???


@BrutalBodyShots wrote:

@xaximus wrote:

Once you get under an AAoA of 2 years is when the impact to your score is more. As long as it's over 2 years, generally the impact is minimal, plus with every passing month, the impact lessens and your score grows. In your case, as long as you have enough old accounts to counter act the young account, you should be okay.

While I agree with your overall points regarding AAoA, your post above may suggest to some that FICO scores increase every month based on AAoA increasing by 1 month in age every month, but that's not the case.  As with many FICO scoring factors, thresholds exist at certain points.  For example, if one reaches 24 months AAoA, perhaps the next threshold isn't until 30 months, then 36 months, etc.  I just felt it was worth clearing that up.


Definitely agree with you @BrutalBodyShots. I didn't wanna complicate it too much. There are definitely certain thresholds that help increase one's score but also something to keep in mind. If a user has any late payments/collections/baddies whatsoever, the impact lessens as time goes. I based my response off that (based on the OP's first post). If one has a clean file then you are most definitely correct. If one does not have a clean file then every passing month helps with any baddies. 



Scores - All bureaus 750 +/-
TCL - Est. $250K
Message 13 of 25
Established Contributor

Re: AoYA hit???

@xaximus: I’m pretty sure there’s a thresholds on the derog’s age change too right? And depending on the age it could change score sheet.

@BBS: what is the consensus of the established thresholds for the different age categories?




Considering BBVA and 5% cards. (Forgive typos, mobile.)(Everything said is Just IMHO.)
Message 14 of 25
Super Contributor

Re: AoYA hit???


@Birdman7 wrote:

@BBS: what is the consensus of the established thresholds for the different age categories?

Tough to say.  My belief from reading on this forum is that maximum (no penalty) scoring can be achieved when age factors are as follows:  AAoA 7 years 8 months, AoOA 17 years, AoYA 2 years.  AoYA of 1 year is probably more than adequate in most cases, but some models seem to like to see a bit longer than that.  As far as thresholds along the way, those are much tougher to come by.  I determined on my profile that thresholds exist at 6.5 years and 7.5 years for AAoA and of course the well-documented 12 months AoYA.  Other points though I'm not sure about, but they can be found mixed in and buried in other threads as people discover them. 

Message 15 of 25
Established Contributor

Re: AoYA hit???

Do you think it’s a coincidence that after 12 months inquiries drop off for scoring purposes and after 12 months is the threshold for AoYA?




Considering BBVA and 5% cards. (Forgive typos, mobile.)(Everything said is Just IMHO.)
Message 16 of 25
Valued Contributor

Re: AoYA hit???


@BrutalBodyShots wrote:

@Birdman7 wrote:

@BBS: what is the consensus of the established thresholds for the different age categories?

Tough to say.  My belief from reading on this forum is that maximum (no penalty) scoring can be achieved when age factors are as follows:  AAoA 7 years 8 months, AoOA 17 years, AoYA 2 years.  AoYA of 1 year is probably more than adequate in most cases, but some models seem to like to see a bit longer than that.  As far as thresholds along the way, those are much tougher to come by.  I determined on my profile that thresholds exist at 6.5 years and 7.5 years for AAoA and of course the well-documented 12 months AoYA.  Other points though I'm not sure about, but they can be found mixed in and buried in other threads as people discover them. 


Sounds about right to me. In my research and readings, I've gotten similar numbers. The interesting thing is, for a thin file, the numbers are more on the lower side, while someone with a larger, thicker file, the numbers are more on the longer side. It's definitely interesting on how the general estimated age factors change across the board. 

 


@Birdman7 wrote:
@xaximus: I’m pretty sure there’s a thresholds on the derog’s age change too right? And depending on the age it could change score sheet.

Most definitely are. For example, a 30 day late impacts a larger amount for upto 2ish years, once past the 2 year threshold, it's only impacting minor points ~10, at times, depending on how thick one's file is, it may not be impacting at all. I've seen both examples. One thing to keep in mind is the amount of lates/derogs. A person having 1 late payment and having it drop off may have a couple of points gained while someone that has 10 late payments may not see any gain if a few fall off. 

 


@Birdman7 wrote:
Do you think it’s a coincidence that after 12 months inquiries drop off for scoring purposes and after 12 months is the threshold for AoYA?

Personally, no i don't think it's a coincidence. 12 months is enough of an established time with a lender to know how your financial habits are. That's how they target you for different promotions, cards, etc. Inquiries generally start aging off around 3-6 months. Even though the point gain is next to nothing, over a course of a year, you do gain something back. 

 

 




Scores - All bureaus 750 +/-
TCL - Est. $250K
Message 17 of 25
Super Contributor

Re: AoYA hit???


@xaximus wrote:

Inquiries generally start aging off around 3-6 months. Even though the point gain is next to nothing, over a course of a year, you do gain something back. 


I and many others have not found this to be the case.  From what I've seen, whatever point loss is realized the moment an inquiry hits your CR, that's the exact point gain returned 365 days later. 

 

It would be almost impossible to determine if a point or two comes back throughout the course of those 365 days, but the fact that the points lost are exactly reversed at the 365 day mark more or less eliminates the possibility that points return based on inquiries during the course of those 365 days.  If that were somehow the case, it would mean the removal of an inquiry would be "worth" more than initially taking it on, which wouldn't make any sense.

Message 18 of 25
Established Contributor

Re: AoYA hit???

Ok Cap1 finally reported at month 2:

EX from 592 to 588 = 4 pt loss

TU from 594 to 584 = 10 pt loss

EQ from 576 to 578 = 2 pt gain

In my case: Having thin and dirty files is hard to determine where the points COULD have been(?) Though, regardless of the changes in the last 2 months, the point hits weren’t as bad as I thought they’d be, as others have mentioned upthread.😊

I do appreciate the feedback from all the contributors to this thread. Thanks👍



Starting FICO 8 Score: EQ 491
Stating FICO 8 Scores 03/17/2018
TU 483 EX 527 EQ 491
Current FICO 8 Score:
EQ 598
Goal Score: 600(within a year)


Take the myFICO Fitness Challenge














Message 19 of 25
Moderator Emeritus

Re: AoYA hit???

Inquiries don't fade on EQ FICO 5, at all, and I find it a little suspect to think they do on any other model either though I don't have great data on that.

 

I had a few inquiries pass the 1 year mark during my mortgage process as the same time I was taking some inquiries as well, identical shifts up and down as I went from 2->3 then 3->2 then 2->3 and finally 3->2: 693 -> 700 -> 693 -> 700 -> 693

 

AOYA does appear to be 1 year on FICO 8, but I still had the reason code for new accounts certainly on TU FICO 4 after a year.  Ultimately if you're trying to maximize the scoresheet you have to stop acquiring tradelines, but really since anything above 760 is basically bragging rights for anything remotely relevant product wise, it doesn't matter all that much.




        
Message 20 of 25