What were the before and after balances on both loans and what were the original amounts for each?
That sounds like the similar magnitude that I saw when I was first testing, would be interested to see if we can narrow down the top breakpoint based on what you have.
AAOA doesn’t change as a result of closing an account: that is a myth regarding FICO; as long as the account is on the report it factors in AAOA (for OC tradelines anyway).
That sounds like the similar magnitude that I saw when I was first testing, would be interested to see if we can narrow down the top breakpoint based on what you have.
AAOA doesn’t change as a result of closing an account: that is a myth regarding FICO; as long as the account is on the report it factors in AAOA (for OC tradelines anyway).
@Yeliaba1 wrote:I had two installment loans (one personal, one auto) along with 6 cc. Deciding I wanted to decrease the number of open accounts, I closed the small personal loan with a balance under 8%. My EX Fico 8 dropped 7 points and the EX Fico 8 bankcard and auto scores dropped 6 each. There was no impact on my mortgage score or EX Fico 2 or 5 scores. Today my TU FICO 8 score dropped 4. The loan was my 2nd youngest account by a couple of days so the AAoA would improve. I still have the auto loan. Seems any time I have closed an installment loan despite having another, I will receive a FICO 8 score drop. Not sure if the fact I don't have a clean scorecard influences the alogorithm.
The AAoA wouldn't be affected by the loan closing. It would only be affected when the loan falls off your reports, which could be many years hence.
The FICO 8's are affected by aggregate installment utilization percentage, so when you close 1 of 2 loans the numerator and denominator are changed, so the aggregate percentage is changed. Sometimes it's increased, sometimes it's decreased, depending on the balances prior to closure and the original loan amounts.
Loan 1 balance 500 original loan 20,000
Loan 2 balance 5000 original loan 20,000
Aggregate is 5500/40,000 = 13.75%
Close Loan 1, new aggregate is 5000/20,000= 25%. Scores may go down.
Close Loan 2, new aggregate is 500/20,000= 2.5%. Scores will go up.
Hrm, I am just going to ask: that 3500 balance is a suspiciously round number, is it exact?
I got a boost going from 82% to 64% on a dirty file and I didn’t find anything below that going all the way down to 9%
If it is scorecard dependent what is your dirt specifically? I had a tax lien, collection, and a 30/60 late.
I got a boost going from 82% to 64% on a dirty file and I didn’t find anything below that going all the way down to 9%
If it is scorecard dependent what is your dirt specifically? I had a tax lien, collection, and a 30/60 late.