Score bump when AoYA reaches 6 months?

[Anonymous]

If your age of youngest account is over 12 months you will take the full penalty on FICO 8.

If it’s less than 12 months, it’s anyone’s guess because it depends on if your profile gets points back at three and six months.

I think it’s one of those things that aren’t completely figured out yet. I did notice it appears the age of the youngest account window is larger than 12 months for the older algorithms.

[Anonymous]

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@sjt wrote:

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Question: Do you get a bigger hit on your score when opening a new account when your AoYA is old, lets say 1-2 years?

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Yes, no doubt about it.  An AoYA of 12+ months dropping to 0 months in the vast majority of cases will result in greater Fico score drops than an AoYA of 11 months or less dropping to 0 months.

[sjt]

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@Anonymous wrote:

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@sjt wrote:

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Question: Do you get a bigger hit on your score when opening a new account when your AoYA is old, lets say 1-2 years?

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Yes, no doubt about it.  An AoYA of 12+ months dropping to 0 months in the vast majority of cases will result in greater Fico score drops than an AoYA of 11 months or less dropping to 0 months.

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Thanks BBS and (Birdman7)!

I didn't realize the big hit you take on a new revolver. Is there any DP showing a smaller hit at some point after a 12-month mark on your AoYA? For example, if your AoYA hits 18 or 24 months and you get a new revolver would the hit be smaller then at the 12-month mark?

[Anonymous]

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@sjt wrote:

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I didn't realize the big hit you take on a new revolver. Is there any DP showing a smaller hit at some point after a 12-month mark on your AoYA? For example, if your AoYA hits 18 or 24 months and you get a new revolver would the hit be smaller then at the 12-month mark?

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Not just a new revolver, a new account.  I think you may be speaking backwards when you asked your question above.  The question should read would the hit be bigger if your AoYA hits 18 or 24 months (relative to 12 months) and you add a new account.  The score drop comes from your AoYA dropping across a threshold or thresholds.  Dropping from 12 months to 0 months AoYA crosses 1 major threshold (12 months) and perhaps 1-2 smaller ones at 6 months and 3 months.  If you AoYA was greater and there were thresholds at 18 months and/or 24 months, it would mean that more thresholds were crossed when dropping to 0 months AoYA from adding a new account, so if anything the score drop expected would be bigger not smaller like you originally asked.

All that being said, I personally have not found a threshold at 18 months or 24 months on my profile.  Earlier this year I reached 24 months AoYA and I saw 0 points gained on any of my 28 Fico scores.  Therefore on my profile, whether I was at 12 months AoYA or 24 months AoYA if I were to open a new account my expectation would be identical score drops. 

[sjt]

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@Anonymous wrote:

Not just a new revolver, a new account.  I think you may be speaking backwards when you asked your question above.  The question should read would the hit be bigger if your AoYA hits 18 or 24 months (relative to 12 months) and you add a new account.  The score drop comes from your AoYA dropping across a threshold or thresholds.  Dropping from 12 months to 0 months AoYA crosses 1 major threshold (12 months) and perhaps 1-2 smaller ones at 6 months and 3 months.  If you AoYA was greater and there were thresholds at 18 months and/or 24 months, it would mean that more thresholds were crossed when dropping to 0 months AoYA from adding a new account, so if anything the score drop expected would be bigger not smaller like you originally asked.

All that being said, I personally have not found a threshold at 18 months or 24 months on my profile.  Earlier this year I reached 24 months AoYA and I saw 0 points gained on any of my 28 Fico scores.  Therefore on my profile, whether I was at 12 months AoYA or 24 months AoYA if I were to open a new account my expectation would be identical score drops. 

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Thanks for the feedback!

I mentioned revolver because the FICO simulators (I know, I know) show a 30 point hit on a new revolver and only a 5 point hit on an installment account. 

In my case, I get the hit given my 28 point score boost on 9.1.19. But a 30 point hit would seem severe for someone who got a new card after a few years from their last account. I wonder if there is a correlation between AAOA and AoYA. 

[Anonymous]

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@sjt wrote:

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I mentioned revolver because the FICO simulators (I know, I know) show a 30 point hit on a new revolver and only a 5 point hit on an installment account. 

In my case, I get the hit given my 28 point score boost on 9.1.19. But a 30 point hit would seem severe for someone who got a new card after a few years from their last account. I wonder if there is a correlation between AAOA and AoYA. 

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Good example above of why simulators are junk.  A new account is a new account.  Assuming a revolver added or an installment loan added doesn't cause aggregate loan/revolving utilization to cross a threshold, the score drop associated with the addition of either would be the same; one wouldn't be 5 points and the other 30 points.  Simulators don't even take into consideration aggregate utilization changes from the addition of an account.

No correlation between AAoA and AoYA outside of the obvious AAoA drop associated with a new account (AoYA reset to 0).

The reason the score hit associated with opening a new account when it's been a long time since opening one is greater is because one isn't experiencing any sort of new account penalty.  That's why they may see a 15-25 point drop or so.  If someone opened an account (say) 2 months ago, they're already experiencing the maximum penalty related to a new account, so adding another isn't going to further impact that factor, where it will still lower AAoA. 

[Anonymous]

I respectfully disagree. I recently tested and discovered an installment loan did NOT reset AoYA on my profile on FICO 8.

On FICO 8, 12 months is the highest known threshold for AoYA, so if you are 12 months or 24, the AoYA hit to FICO 8 would be the same.

However, opening a 2nd new account may not cause a further AoYA hit, but it does cause further dings, as I got dinged a point each for my 2nd account on EQ and EX, while TU hit me for 3 points for my 2nd new revolver.

https://ficoforums.myfico.com/t5/Understanding-FICO-Scoring/AoYA-penalty-Clean-aged-thick/m-p/572237...
The second hits could be AAoA,; I have not analyzed.

[Anonymous]

So, in your opinion, "AoYA" is a meaningless term and should be presented as "AoYRA?"

I wonder if your finding is consistent across all scoring models, or only certain ones.

[Anonymous]

No my findings did not exist across other models. As a matter of fact my findings lead me to believe that the AoYA threshold for the older models is greater than 12 months actually. Consequently I was unable to test the older models because they didn’t award me points at 12 months.

Yeah pretty much is the age of your youngest revolver as far as FICO 8 goes.

I pulled a pile of 3Bs. The day before I hit 12 months, the day I did hit 12 months, and the very next day when the loan hit EQ and EX.

I pulled again the following day, I had to, because TransUnion was a day later. And then I finally applied for revolvers and when one hit, I saw the ding.

One thing I cannot explain though is why I did not get any points at Equifax for 12 months AoYA.

Yes I had been planning this test for quite a while, because myself and Rev had been discussing whether it was just revolvers or whether installment loans also reset it. I have now resolved the question to my satisfaction for FICO 8.

[Anonymous]

One caveat, it could be different on younger or thin scorecards. I can only speak for my clean aged thick profile.