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New account-Age, and it's effects on your credit score

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Anonymous
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New account-Age, and it's effects on your credit score

How long does a new account have to age before it : 1. Stops having a negative effect on your CS
2. Has a positive effect on your CS
8 REPLIES 8
Anonymous
Not applicable

Re: New account-Age, and it's effects on your credit score


@Anonymous wrote:
How long does a new account have to age before it : 1. Stops having a negative effect on your CS
2. Has a positive effect on your CS

You typically get a boost when your youngest account hits 12 months.  IMO, the answer is a little deeper than that.  All of your accounts (opened and closed) make up your AAoA(average age of accounts).  On Experian in particular, it wants your AAoA to be 7 years, 8 months.  To obtain perfect FICO scores, I believe this is the minimum AAoA required.  So whenever you apply for something, you are setting some of this clock back.

 

So when the new account is over 12 months and contributing to an AAoA that is over 7 years/8 months then I would consider it positive.

Message 2 of 9
Meanmchine
Super Contributor

Re: New account-Age, and it's effects on your credit score


@Anonymous wrote:

@Anonymous wrote:
How long does a new account have to age before it : 1. Stops having a negative effect on your CS
2. Has a positive effect on your CS

You typically get a boost when your youngest account hits 12 months.  IMO, the answer is a little deeper than that.  All of your accounts (opened and closed) make up your AAoA(average age of accounts).  On Experian in particular, it wants your AAoA to be 7 years, 8 months.  To obtain perfect FICO scores, I believe this is the minimum AAoA required.  So whenever you apply for something, you are setting some of this clock back.

 

So when the new account is over 12 months and contributing to an AAoA that is over 7 years/8 months then I would consider it positive.


Im at 848 FICO8 TU right now.  AAoA 5y 9m.  Im hoping for maybe a miracle tomorrow

>3/2016 EX 644 CK-TU 642 CK-EQ 660 WalMart- 671.
>5/2023 All 3 reports 840ish (F8) F9s = 850 but my app finger is still twitching
Message 3 of 9
Anonymous
Not applicable

Re: New account-Age, and it's effects on your credit score


@Meanmchine wrote:

@Anonymous wrote:

@Anonymous wrote:
How long does a new account have to age before it : 1. Stops having a negative effect on your CS
2. Has a positive effect on your CS

You typically get a boost when your youngest account hits 12 months.  IMO, the answer is a little deeper than that.  All of your accounts (opened and closed) make up your AAoA(average age of accounts).  On Experian in particular, it wants your AAoA to be 7 years, 8 months.  To obtain perfect FICO scores, I believe this is the minimum AAoA required.  So whenever you apply for something, you are setting some of this clock back.

 

So when the new account is over 12 months and contributing to an AAoA that is over 7 years/8 months then I would consider it positive.


Im at 848 FICO8 TU right now.  AAoA 5y 9m.  Im hoping for maybe a miracle tomorrow


I have quite a few new accounts but currently I'm somewhere with an AAoA of 7-8 years, AoOA 19+, 4% UTI, and 0 inquiries on EX.  I also have a CFA reporting only on certain models of EX.  I consider myself retired from applying for new accounts so I think with just gardening, I might be able to get there.  I have always been part of the good enough club and have no desire to achieve or maintain perfect scores but I am admittingly curious to see if it is possible to achieve perfection with a CFA reporting.

Message 4 of 9
Anonymous
Not applicable

Re: New account-Age, and it's effects on your credit score


@Anonymous wrote:

On Experian in particular, it wants your AAoA to be 7 years, 8 months.  To obtain perfect FICO scores, I believe this is the minimum AAoA required. 

I can confirm that a perfect EX Fico 8 can be obtained with an AAoA at least a year less than that.  At 6 years 9 months for sure I had an 850, but I believe it was actually a few months before that (say) 6 years 7 months.  At the time I reached 850 I was at 7.x years AAoA, but since then I've had older accounts fall off and my AAoA has dropped.  It's currently at 6 years 11 months and of course still 850.

Message 5 of 9
Meanmchine
Super Contributor

Re: New account-Age, and it's effects on your credit score

I have a CFA on FICO 2 both bankcard and auto but not on FICO 8 or 9

It codes as a Line of Credit for FICO8. Its been closed for years but every christmas, I get a real Christms card in the mail from them. No other bank. They are MobiiLoans, an indian tribe from Mississippi

>3/2016 EX 644 CK-TU 642 CK-EQ 660 WalMart- 671.
>5/2023 All 3 reports 840ish (F8) F9s = 850 but my app finger is still twitching
Message 6 of 9
Revelate
Moderator Emeritus

Re: New account-Age, and it's effects on your credit score


@Meanmchine wrote:

I have a CFA on FICO 2 both bankcard and auto but not on FICO 8 or 9

It codes as a Line of Credit for FICO8. Its been closed for years but every christmas, I get a real Christms card in the mail from them. No other bank. They are MobiiLoans, an indian tribe from Mississippi


Actually it's there on the others too unfortunately just not a big enough ding to show up in the reason code list.  When I've gotten ultra purty I've seen it on both FICO 9 and the FICO 8 industry options, unfortunately FICO 8 reason codes suck basically everywhere for real testing and can't get #3/#4 and often not even #2.

 

I hate CFA's, not a big ding and maybe an extremely minor one but the fact any blemish short of a CH 7 stays on for 10 years is just obscene to me.




        
Message 7 of 9
Meanmchine
Super Contributor

Re: New account-Age, and it's effects on your credit score


@Revelate wrote:

@Meanmchine wrote:

I have a CFA on FICO 2 both bankcard and auto but not on FICO 8 or 9

It codes as a Line of Credit for FICO8. Its been closed for years but every christmas, I get a real Christms card in the mail from them. No other bank. They are MobiiLoans, an indian tribe from Mississippi


Actually it's there on the others too unfortunately just not a big enough ding to show up in the reason code list.  When I've gotten ultra purty I've seen it on both FICO 9 and the FICO 8 industry options, unfortunately FICO 8 reason codes suck basically everywhere for real testing and can't get #3/#4 and often not even #2.

 

I hate CFA's, not a big ding and maybe an extremely minor one but the fact any blemish short of a CH 7 stays on for 10 years is just obscene to me.


Maybe so wabbit, Maybe so

>3/2016 EX 644 CK-TU 642 CK-EQ 660 WalMart- 671.
>5/2023 All 3 reports 840ish (F8) F9s = 850 but my app finger is still twitching
Message 8 of 9
Anonymous
Not applicable

Re: New account-Age, and it's effects on your credit score

I don't think I'll ever reach that 7 year, 8 month mark! At least not as long as they continue offering SUBs.

I've got like 5 accounts at the 1 year, 3 month mark, with one reaching 2 years this month. 

So I'm getting closer and closer to being under 5/24. Smiley Very Happy

Message 9 of 9
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