Fico New Accout Aging

[Anonymous]

At what point does Fico view an account as 1 year old? If i took the inquiry say on Oct 31 2016 and the new account shows as opened on Nov 1 2016.. Will it be 1 year on Nov 1, Nov 2, or Oct 1?

[Anonymous]

Does the date the account was opened match the inquiry date?  Usually it does.  That being said, the account should be seen by FICO as 1 year old today.

[Anonymous]

Can't remember how it shows on my paper reports but I'm basing it off the info from CCT... the inquiry was October 31st. The account open date is November 1st. The account was Penfed so it could have been that the inquiry was made. Then the following day after review the account was opened... seems like that's how it went

[Anonymous]

Note that FICO's "new account" aging is different than inquiry aging.

The inquiry penalty (FICO-score wise) is for 12 months but may start reducing in score effect as early as 6 months.

The FICO new account penalty for having a new account (not an inquiry) is 6 months.  The considerably decent FICO simulator at MyFico actually asks how new your latest account is (less than 3 months, 3-6 months, over 6 months) and those seems to be FICO's new account penalty scoring breakpoints.

Inquiry costs you for 0-6 months then costs a little less until 12 months.

New accounts cost you when they're really new (less than 3 months) then a bit less as they age and after 6 months they're no longer considered new.

AAoA also matters when it comes to FICO score.

[Anonymous]

Ok. So in the case of my account opening November 1st 2016... it is 1 year old today?

[Anonymous]

I believe it is 1 year old today.  I think I have read though that an account opened at some point during the month is viewed as being opened on the 1st of that month.  Someone correct me if I'm wrong?  So, if the OP opened his account say November 20th, it could still be considered 1 year old on November 1st if FICO actually considers the first day of the month that it was opened?  Since the OP actually opened his account on the 1st of a month, this potential "rule" wouldn't apply.

[Anonymous]

There is at least one CRA that calculates age solely on the 1st of the month.  Thus, as in the example that BBS gave, if an account has a Date Opened of Nov 26, then it would be zero months old through Nov 30 and then on Dec 1 would become 1 month old.  (Even though it was in fact only 5 days old.)

Thus, the rule is:

      *  Every account begins with an age of 0 months.

      *  At 12:01 AM on the first of the month, every account gets 1 month added to its age.

An account that has a Date Opened of Nov 1 would start with an age of 0 months, and then on Dec 1 would become 1 month old.

I am unsure if all three CRAs work that way. 

In our OP's case, his account would be 12 months old by Nov 2 no matter which approach was used.

[Anonymous]

Good post above CGID, you explained that much better than I could have.