What Score Changes to Expect when my AAOA is cut 50% plus

[Anonymous]

Good Day Ladies and Gentleman - This is DW profile question - hoping someone will be kind enough to help us understand what to expect  based on the following - 4 new revolvers ($49k) due to report in Jan 19  

FICO: EX 759; EQ 734; TU 756

Currently 

AAOA - 2yrs 6mos

AOOA - 3yrs 9mos

AOYA - 1yrs 5mos

Am I missing anything? How big of a hit do you think this young account will take? 

Revolving 

1 - $8500 (was 25% now 0%) 

Installment 

2 

[Anonymous]

She should expect some drop in AAoA dropping below 2 years but the biggest hit should be about 15-20 points for resetting AoYA to 0.

When you said 0%, do you mean $0 balance on all cards or just rounded down?

[expatCanuck]

A hit should also be anticipated for 'credit-seeking behavior'. 

Also -- what will the utilization be on these new reporting accounts?

[Thomas_Thumb]

---

@Anonymous wrote:

Good Day Ladies and Gentleman - This is DW profile question - hoping someone will be kind enough to help us understand what to expect  based on the following - 4 new revolvers ($49k) due to report in Jan 19  

FICO: EX 759; EQ 734; TU 756

Currently 

AAOA - 2yrs 6mos

AOOA - 3yrs 9mos

AOYA - 1yrs 5mos

Am I missing anything? How big of a hit do you think this young account will take? 

Revolving 

1 - $8500 (was 25% now 0%) 

Installment 

2 

---

Anticipate a 20 point drop associated with AoYA dropping from over 12 months to zero months. Perhaps another 10 points for "too many" accounts recently opened. My guess is AAoA will drop below 2 years but remain above 1 year. That may cost another 10 points. Overall temporary drop in score could be 40 points - IMO.

[Anonymous]

Thank you for your reply Expat - $0 utilization. Maybe $20 just to achieve AZEO 

[Anonymous]

Thank you TT and Old Man - appreciate your feedback! 

[Anonymous]

$20 on one card = 1%, FICO always round up no matter how small. Make sure you don't report $0 balance on all cards (0%) and get hit with another 15-20 All Zero penalty points.

[Anonymous]

As always thank you OM! You're the man! 

[Anonymous]

No problem Brandon.

Seriously though, no more apps. Her profile is in a good place, letting it age until your mortgage (where the real money and savings are with lower rates) in spring 2020 would put her close to 800. The more new accounts you add, the lower her AAoA, the later she gets that AoYA > 12 month bonus (15-20), the more scorable inquiries, the lower her score is going to be when that mortgage comes around. Same goes for your own profile, control yourself man. 

[Anonymous]

I got you man. I know and I respect the heck out of you!

Don’t think I’m not heeding your advice because I am. We just have some other things going on such as taxes, etc. I’m absolutely following and listening to your directive. Our strategy is 100% improved because of you.

I really do appreciate you sir because you don’t have to tell me a **bleep** thing. But you have and do because your a good person. Thank you- you have no idea how much it means to us! 😊 might be little sitting behind your computer but not to us. You have and are impacting our lives.