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‘ Short Revolving History ‘ / ‘ Long Credit History ‘

LaHossBoss
Senior Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘

@Birdman7 Just real quick, I want to make sure that I am understanding the negative reason code "short credit history" (not "you have not establsihed a long revolving and/or open-ended account credit history") This involves AAoRA/AoORA and not overall AAoA?

 

When I click on the "?" for "short account history" this is what I see and it does not specifically state revolving/open-ended accounts, but I would like to be more certain:

 

Screenshot_20210504-151205_myFICO.jpg

 




Starting Score: 2•20 | EQ 550 | TU 498 | EX 505
Current Score: 7•21 | EQ [F8 645] [F9 651] [EQ5 684] [VS3 630] | TU [F8 717] [F9 692] [TU4 723] [VS3 643] | EX [F8 714] [F9 675] [EX2 681] [VS3 674]
Goal Score: 670 [X] TU [X] EX

Take the myFICO Fitness Challenge

SO Starting Score: 2•20 | EQ 502 | TU 484 | EX 521
SO Current Score: 7•21 | EQ [F8 670] [F9 622] [EQ5 706] [VS3 639] | TU [F8 676] [F9 673] [TU4 652] [VS3 620] [VS4 598] | EX [F8 707] [F9 711] [EX2 680] [VS3 656]
Goal Score: 670 [X] TU [X] EX




Message 41 of 79
Birdman7
Super Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘


@LaHossBoss wrote:

@Birdman7 Just real quick, I want to make sure that I am understanding the negative reason code "short credit history" (not "you have not establsihed a long revolving and/or open-ended account credit history") This involves AAoRA/AoORA and not overall AAoA?

 

When I click on the "?" for "short account history" this is what I see and it does not specifically state revolving/open-ended accounts, but I would like to be more certain:

 

Screenshot_20210504-151205_myFICO.jpg

 


@LaHossBoss that is a AAoA and/or AoOA. But since AoOA is a segmenter, we know its AAoA. 

then you have the one for AoORA and/or AAoRA. Then same for installment and then same for open installment. Ect. 

Message 42 of 79
Curious_George2
Established Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘


@Birdman7 wrote:

@LaHossBoss wrote:

@Birdman7 Just real quick, I want to make sure that I am understanding the negative reason code "short credit history" (not "you have not establsihed a long revolving and/or open-ended account credit history") This involves AAoRA/AoORA and not overall AAoA?

 

When I click on the "?" for "short account history" this is what I see and it does not specifically state revolving/open-ended accounts, but I would like to be more certain:

 

Screenshot_20210504-151205_myFICO.jpg

 


@LaHossBoss that is a AAoA and/or AoOA. But since AoOA is a segmenter, we know its AAoA

then you have the one for AoORA and/or AAoRA. Then same for installment and then same for open installment. Ect. 


By the part bolded above, are you implying that a single characteristic can't be used for both scoring and segmentation?


Message 43 of 79
Birdman7
Super Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘


@Curious_George2 wrote:

@Birdman7 wrote:

@LaHossBoss wrote:

@Birdman7 Just real quick, I want to make sure that I am understanding the negative reason code "short credit history" (not "you have not establsihed a long revolving and/or open-ended account credit history") This involves AAoRA/AoORA and not overall AAoA?

 

When I click on the "?" for "short account history" this is what I see and it does not specifically state revolving/open-ended accounts, but I would like to be more certain:

 

Screenshot_20210504-151205_myFICO.jpg

 


@LaHossBoss that is a AAoA and/or AoOA. But since AoOA is a segmenter, we know its AAoA

then you have the one for AoORA and/or AAoRA. Then same for installment and then same for open installment. Ect. 


By the part bolded above, are you implying that a single characteristic can't be used for both scoring and segmentation?


@Curious_George2 Yes, that is my belief.

Message 44 of 79
Curious_George2
Established Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘

What about these?

 

* AoYA - segmenter in mortgage scores, and the source of the New Account reason. 

* Number of accounts - segmenter for thick v. thin and the basis for Too Few or Too Many Accounts reason. 

* Baddies - segementers for dirty scorecards and the source of several significant scoring penalties and reasons. 


Message 45 of 79
Birdman7
Super Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘


@Curious_George2 wrote:

What about these?

 

* AoYA - segmenter in mortgage scores, and the source of the New Account reason. 

* Number of accounts - segmenter for thick v. thin and the basis for Too Few or Too Many Accounts reason. 

* Baddies - segementers for dirty scorecards and the source of several significant scoring penalties and reasons. 


@Curious_George2 AoYA is a segmenter for the mortgage scores, but a scoring factor for 8/9. I have not seen evidence of it being a scoring factor for 542 yet. Not saying it's not, but....

 

Number of Accounts is a Segmentation Factor in 8/9 indeed and this has bothered me, but I've only seen too many accounts as a reason for 5/4/2. Number of bankcards is a Scoring Factor for 8/9.

 

I have often wondered if 5/4/2 uses Number of Revolvers for Thick/thin?

 

I have never really considered baddies. There's always the possibility I'm wrong as well. 

Message 46 of 79
Birdman7
Super Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘

@Curious_George2 The more I think about it, I don't think we could escape them doing double duty for dirty cards with the baddies. 

Message 47 of 79
noneofyourbusiness0
New Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘

First scorecard segmentation is clean vs. dirty. This is what they mean by "baddies." No 60-day late in the past 2 years, no collections, judgements, liens, etc. moves you into clean. Then the clean segments a few more times. A 60-day late within 2 years or something worse brings you over to dirty cards and the segment into a few different categories as well.

 

Focusing just on the clean side, once you determine you are clean, next I believe is thick vs. thin. It is believed that 4 tradelines is often sufficient to be considered thick. So at this point, you might be clean & thick.

 

Next I believe is Mature vs. Young. The theory is that 3 yrs AoOA is mature for the newer versions (FICO 8, maybe 9) and 2 yrs is Mature for FICO 2/4/5 or the "mortgage scores." So at this point, you might be clean/thick/young (no derogs, more than 4 TLs and low AoOA), or clean/thin/mature (no derogs, few total tradelines, but at least account older than 2 or 3 years), or clean/thick/mature or clean/thin/young. Here, AoOA only segments you into a card, but doesn't add or subtract points. Once assigned to a card, AAoA then adds or subracts points, but AAoA isn't believed to segment.

 

The last segmentation is the age of your youngest account, which is AoYA. This varies by score type. I'm currently battling this one for mortgage scores and it is believed to be in the 17-18 month range. Other score versions are different. You can read the primer that a bunch of kind posters put together to get a more detailed rundown.

 

Finall

Message 48 of 79
Curious_George2
Established Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘

Agreed. Also, here's evidence that New Account is a scoring factor for two of the mortgage scores:

EQ5EQ5

 

TU4TU4

ETA: My "agreed" comment was directed at Birdman's post. I type too slowly. 


Message 49 of 79
Birdman7
Super Contributor

Re: ‘ Short Revolving History ‘ / ‘ Long Credit History ‘


@noneofyourbusiness0 wrote:

First scorecard segmentation is clean vs. dirty. This is what they mean by "baddies." No 60-day late in the past 2 years, no collections, judgements, liens, etc. moves you into clean. Then the clean segments a few more times. A 60-day late within 2 years or something worse brings you over to dirty cards and the segment into a few different categories as well.

 

Focusing just on the clean side, once you determine you are clean, next I believe is thick vs. thin. It is believed that 4 tradelines is often sufficient to be considered thick. So at this point, you might be clean & thick.

 

Next I believe is Mature vs. Young. The theory is that 3 yrs AoOA is mature for the newer versions (FICO 8, maybe 9) and 2 yrs is Mature for FICO 2/4/5 or the "mortgage scores." So at this point, you might be clean/thick/young (no derogs, more than 4 TLs and low AoOA), or clean/thin/mature (no derogs, few total tradelines, but at least account older than 2 or 3 years), or clean/thick/mature or clean/thin/young. Here, AoOA only segments you into a card, but doesn't add or subtract points. Once assigned to a card, AAoA then adds or subracts points, but AAoA isn't believed to segment.

 

The last segmentation is the age of your youngest account, which is AoYA. This varies by score type. I'm currently battling this one for mortgage scores and it is believed to be in the 17-18 month range. Other score versions are different. You can read the primer that a bunch of kind posters put together to get a more detailed rundown.

 

Finall


@noneofyourbusiness0 very well said. The last segmentation point we have updated the nomenclature for recently. The older Scores segment on any new account < 18 months. The newer Scores segment on new revolvers or open ended accounts < 12 months. And it was me that put the Primer together with @Anonymous's wonderful assistance, but based upon personal & collective knowledge from the Community. 

 

@Curious_George2 yes you are 100% correct that the mortgage scores segment on all new accounts.

Message 50 of 79
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