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Credit Gurus who are good at "the game" - I need advice re: a good standing item aging off soon

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moosemoney
Regular Contributor

Credit Gurus who are good at "the game" - I need advice re: a good standing item aging off soon

I have a student loan on my report that will be aging off in January that is reporting to both TU and EQ but not EX. It was paid in full with perfect payment history, so it's a pretty important item. I think the reason my EX score is my lowest is because the loan is not reporting to them (but that's just a theory).

 

Below is a quick spreadsheet of everything in my report (as of today my AAoA is 6.94 years):Screen Shot 2019-04-23 at 9.14.18 AM.png

(the red "negative" items on my mortgage are late payments up to 12/2016 - perfect payments since then)

 

I'm pretty sure I'm gonna take a hit when this ages off, in both my AAoA and I assume in my Credit Mix as well. What is something I can do to lessen the blow? Now that I am at a good place credit-wise, I'm willing to play the "credit game." 

Message 1 of 20
19 REPLIES 19
Anonymous
Not applicable

Re: Credit Gurus who are good at "the game" - I need advice re: a good standing item aging

Oooo - yeah. I’ll be interested in replies to this. I have a mini ‘fiscal cliff’ coming in 2022 as well, oldie but goodie dropping off.
Message 2 of 20
Anonymous
Not applicable

Re: Credit Gurus who are good at "the game" - I need advice re: a good standing item aging

I think you may be anticipating a more serious blow than is likely to occur.  If I am reading your spreadsheet right, you have a closed store card (opened in Jan 2002, the same time that your loan was opened).  Does this card appear on all three of your reports?  If so, that card will remain on your reports after the closed loan falls off, and thus your Age of Oldest Account should be unaffected.

 

There is no way to "soften the blow" of an impending drop in one's AAoA (Average Age of Accounts).  The AAoA will go down by whatever the math says it will, and then that will have whatever impact it is going to have on your score.

 

The choices that are within a person's control (to improve age-related aspects of his credit profile) are most notably avoiding closing cards that are substantially older than other open accounts, and possibly the AU trick (being added as an AU to a card that is extremely old, derog-free, with a zero or ultralow balance).

 

Another age-related tactic, once a person has several cards (which you do), is to stop opening new accounts.  That will prevent you from taking further hits on your AAoA and will also improve your AoYA.

 

Have you implemented AZEO?  With a total CC utilization of 1-4%?

Message 3 of 20
moosemoney
Regular Contributor

Re: Credit Gurus who are good at "the game" - I need advice re: a good standing item aging


@Anonymous wrote:

I think you may be anticipating a more serious blow than is likely to occur.  If I am reading your spreadsheet right, you have a closed store card (opened in Jan 2002, the same time that your loan was opened).  Does this card appear on all three of your reports?  If so, that card will remain on your reports after the closed loan falls off, and thus your Age of Oldest Account should be unaffected.

 

There is no way to "soften the blow" of an impending drop in one's AAoA (Average Age of Accounts).  The AAoA will go down by whatever the math says it will, and then that will have whatever impact it is going to have on your score.

 

The choices that are within a person's control (to improve age-related aspects of his credit profile) are most notably avoiding closing cards that are substantially older than other open accounts, and possibly the AU trick (being added as an AU to a card that is extremely old, derog-free, with a zero or ultralow balance).

 

Another age-related tactic, once a person has several cards (which you do), is to stop opening new accounts.  That will prevent you from taking further hits on your AAoA and will also improve your AoYA.

 

Have you implemented AZEO?  With a total CC utilization of 1-4%?


Hello and thank you for your input! To answer your questions:

 

01) you have a closed store card (opened in Jan 2002, the same time that your loan was opened). Does this card appear on all three of your reports?

Yes, the card was opened the same time as my student loan, and was closed (due to inactivity) a year after my student loan. So the age is the same but I will be getting another year out of that card reporting. Coincidently, that card is only reporting to EX, the one bureau my student loan is not reporting to.

 

02) Have you implemented AZEO?  With a total CC utilization of 1-4%?

Yes, I do AZEO. My two store cards and two CC (oldest and newest) reports -0- (I PIF before the statement cuts) and my 2nd to newest CC (which has only reported once so far) reported $638 / $10,000 (6.38%). 

 

I have no immediate intention of opening any more cards, but I would like to try for a Chase in a year or two, when I meet the qualifications that I've been reading about. 

 

I hope you're right in that I won't be dinged as much as I think I will be. 

Message 4 of 20
Anonymous
Not applicable

Re: Credit Gurus who are good at "the game" - I need advice re: a good standing item aging

Two quick pieces of feedback.  CGID in another thread this morning corrected me stating that a closed loan on your CR impacts "credit mix" the same way as an open one, so the closure of your student loan will continue to satisfy "credit mix" so long as it remains on your report. 

 

Another thing worth considering OP which I know is off topic to what you're looking for in this thread is tracking your account ages by months.  In your chart you have account age in both days and years, but months is what FICO looks at when considering age of accounts factors.  All accounts become 1 month old on the 1st of the following month from which it was opened, or 12 months old on the 1st of the month the the account was opened in the following year.  For example, if you open an account on June 28, that account is 1 month old a few days later on July 1 and reaches 12 months in age on June 1 the following year.

Message 5 of 20
calyx
Super Contributor

Re: Credit Gurus who are good at "the game" - I need advice re: a good standing item aging

Completely unhelpful comment, but thanks for sharing that spreadsheet/chart.  I always love seeing how other members track their information and like to see if maybe it's something I want to incorporate.

Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 6 of 20
xaximus
Valued Contributor

Re: Credit Gurus who are good at "the game" - I need advice re: a good standing item aging

Just did some quick math (numbers are estimates), you'll be dropping from 6.94 years down to 5.495ish, but when you do the method as BBS stated (1 month on first date regardless of when opened), then I'm guessing it should be a bit higher then 5 and a half years. The drop shouldn't be too bad so I wouldn't fret too much. I would be more excited about the baddies falling off as the increase from those is going to negate any of the loss you'll get from your AAoA dropping. The 2 baddies that are dropping off on 6/19 and 9/19 will definitely give you a boost.


Scores - All bureaus 770 +
TCL - Est. $410K
Message 7 of 20
moosemoney
Regular Contributor

Re: Credit Gurus who are good at "the game" - I need advice re: a good standing item aging


@calyx wrote:

Completely unhelpful comment, but thanks for sharing that spreadsheet/chart.  I always love seeing how other members track their information and like to see if maybe it's something I want to incorporate.


I've become somewhat obsessed with my credit and have many spreadsheets to track changes and how they affect my score, along with things upcoming and things I want to do at certain timeframes. This is my "master sheet" that just lists everything in my report and I refer back to it all the time. Smiley Happy

Message 8 of 20
moosemoney
Regular Contributor

Re: Credit Gurus who are good at "the game" - I need advice re: a good standing item aging


@xaximus wrote:
Just did some quick math (numbers are estimates), you'll be dropping from 6.94 years down to 5.495ish, but when you do the method as BBS stated (1 month on first date regardless of when opened), then I'm guessing it should be a bit higher then 5 and a half years. The drop shouldn't be too bad so I wouldn't fret too much. I would be more excited about the baddies falling off as the increase from those is going to negate any of the loss you'll get from your AAoA dropping. The 2 baddies that are dropping off on 6/19 and 9/19 will definitely give you a boost.

I am very excited to see the jump I will get from those! The 06/2019 PFD is going to have a bigger impact I think because the 09/2019 collection has had a -0- balance for years. My goal for the end of 2019 is to hit 700 across the board (and I'm already soclose) but I'm thinking I will zooooooom past that when those two come off! Smiley LOL

Message 9 of 20
calyx
Super Contributor

Re: Credit Gurus who are good at "the game" - I need advice re: a good standing item aging


@moosemoney wrote:

@calyx wrote:

Completely unhelpful comment, but thanks for sharing that spreadsheet/chart.  I always love seeing how other members track their information and like to see if maybe it's something I want to incorporate.


I've become somewhat obsessed with my credit and have many spreadsheets to track changes and how they affect my score, along with things upcoming and things I want to do at certain timeframes. This is my "master sheet" that just lists everything in my report and I refer back to it all the time. Smiley Happy


I, too, have a ridiculous number of spreadsheets tracking things and changes and what I'd like to do upcoming.

Spreadsheet nerds, unite! Smiley LOL

Happy practitioner of AZE7or8or9or10 | Team Finances > FICO
Message 10 of 20
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