So, I recently apped and received two new credit cards, one from AmEx and one from USAA. They are just starting to pop up on the reports, as seen through USAA CredMon, and I had slight improvements on my EX and EQ FAKO (USAA is the only one that has shown up, and raised each FAKO about 4 points.)
I had been pretty skeptical/concerned with the impact these new cards would have as they will greatly reduce my AAoA, it was low to begin with. But, they are also my first Prime CC and both have much higher limits than I previously did with my RZMC.
EQ has been my lowest FICO for a while as they do not report my oldest tradeline, an auto loan from about 8 years ago. My history on EQ is about a year newer, bringing my AAoA under the 3 year mark. Well, I pulled my EQ FICO to see the impact the addition of the USAA card had, and I jumped about 50 points!? I went from a 646 on EQ to 693. I'm assuming this is a rebucket? I'm not sure what impact the AmEx showing up will be, I would imagine only negative at this point as it will bring my AAoA down further, but as they start to age, I should start to see bigger and better increases.
Pretty crazy how these FICO formulas work.
Starting Score: EQ-484(10/10/2011) TU-533(10/10/2011)
@RobertEG wrote:Speculations.........
FICO is very sensitive to the presence and use of revolving credit. I am not sure how many CCs you had prior to the two new ones, but having multiple lines of revolving credit appears to a significant factor in credit mix. Also, your scoring bucket may have been improved by the presence of a major bank card, which are considered more significant under FICO than non-bank cards.
It appears to me that you have improved your credit mix. That may or may not have moved you to a different peer bucket in scoring, but regardless, it appears that your revolving credit has improved, apart from the length of account and util issues that go with it.
That seems to be the reason. I only had a RZMC with a $300 limit previously and was also an AU on my wifes WFNNB Store Card.
Don't have any major baddies showing; only negative is a 30 day late. It is recent, so my biggest detractor. So an improved mix of credit isn't actually a rebucketing, just an improvement within my current? I'm still working to grasp how/when rebucketing occurs and its impact.
Thanks for the input.
While on this topic, is it accurate that reaching 3 years AAoA generally leads to step in score? I've crunched the numbers, EX and TU will be back at 3+ years in 2 months after the new accounts update on my CR. It will take about 8 months for my EQ to be at 3 years though. Really doesn't make much of a difference, now that I've got the 2 cards I wanted, I won't be applying for anything until we buy a house; just slightly obsessed with doing anything and everything I can to improve my score.
@llecs wrote:YMMV. Your length of history and AAoA will always change on the first. Certainly worth looking if wanting to be a scoring junkie. I recall an increase when mine went from 2 to 3, but I can't remember the particulars. Also look for potential changes as your oldest TL, oldest revolving, oldest installment, etc., hit an anniversary. I used to pull on the last day of the month for each FICO and again on the first day. With no changes except for the age, I once recorded a nice gain when my oldest hit 13.5 years, so it isn't limited to a whole number in terms of a TL's age.
The 1st of the month? My auto loan was taken out last year, 2010, in late November, right around Thanksgiving. So would this tradeline be hitting 1 year old on Nov 1st, or Dec 1st? I suppose it probably depends on how it is reported, but shows as opening Nov. 2010. I'll definitely be keeping a close eye on things as these accounts continue to age. Thanks for the insight.