I am testing the FICO formula by removing old accounts...
Today's episode...Yesterday, I went from 801 to 795 on EQ because an installment loan that I opened on 1/1998 and closed on 2/1998 was removed from my report. Yes, this loan is one of those car dealer hostage situations. No other action occured on my report that day. This leaves me with only one installment loan on my report. The one remaining was opened on 2/1998 and paid off on 2001. I moved the car dealer loan to my bank.
I can only conclude one should leave all good standing installment loans on your report for as long as possible. Do not worry if they are only 1 month in duration (age). Apparently averaging is not used for installment loans.
This is the opposite experience I had with a revolving MBNA credit card. The MBNA card was opened and closed for a month back in 2002. When I asked EQ to verify the ownership and they could not, my FICO score went up 9 point. Again no other action on my report. As such, I conclude you should try to remove revolving credit cards with short average ages that are closed. My guess is these cause your average age score to go down.
Message Edited by Viking on
09-22-2007 06:17 AMMessage Edited by Viking on
09-22-2007 06:18 AMMessage Edited by Viking on
09-22-2007 06:19 AM