When AoYA Reaches One Year...

[Anonymous]

What happens when the age of your youngest account reaches one year? I ask because I have seen various answers: anything from no score change, to a small score change, to a score change of 10+ points. Could I expect anything to change when the age of my oldest account reaches a year and, if there is a change, would that also factor in that the associated inquiry also reached one year (and therefore should also result in a slight bump)?

For reference, my current AAoA is 2 years 10 months, and will be 3 years flat when that account reaches 1 year old. 

Thanks!

[Anonymous]

From what I’ve read from @BBS and others, a one-year AoYA is easily worth 10 points, possibly more, and that’s just a flat-out gain for reaching this age. Why you’re seeing mixed reports can easily be explained - there are so many moving parts on a profile and everyone’s is different. Coincidental score-affecting events at the same time may boost, blunt, or completely negate the age threshold gain. One could pay off a high-UTI card that month and see a 20+ point gain overall. One might have a calm month with no other scoring factors coming into play and see 10 points or more. One might have an inquiry hit at the same time and end up with a net gain of 7 points, with three points being lost to the HP. One might also cross UTI thresholds upward on a couple of cards at the same time and see a net zero gain. One could also have a 30-late hit at that time and end up having the 10 point gain from AoYA help to limit the damage from the late account to only a 40 point net loss rather than 50 or more. Or there could be a mix of any or all of these factors.

But, isolated in a vacuum, you should expect in the neighborhood of 10 points (up to even 15) from hitting that one-year AoYA.

[Anonymous]

---

@Anonymous wrote:
From what I’ve read from @BBS and others, a one-year AoYA is easily worth 10 points, possibly more, and that’s just a flat-out gain for reaching this age. Why you’re seeing mixed reports can easily be explained - there are so many moving parts on a profile and everyone’s is different. Coincidental score-affecting events at the same time may boost, blunt, or completely negate the age threshold gain. One could pay off a high-UTI card that month and see a 20+ point gain overall. One might have a calm month with no other scoring factors coming into play and see 10 points or more. One might have an inquiry hit at the same time and end up with a net gain of 7 points, with three points being lost to the HP. One might also cross UTI thresholds upward on a couple of cards at the same time and see a net zero gain. One could also have a 30-late hit at that time and end up having the 10 point gain from AoYA help to limit the damage from the late account to only a 40 point net loss rather than 50 or more. Or there could be a mix of any or all of these factors.

But, isolated in a vacuum, you should expect in the neighborhood of 10 points (up to even 15) from hitting that one-year AoYA.

---

I see. Thanks so much for the explanation! Much appreciated

[Anonymous]

I would say 15-20 is pretty common actually.  I believe I received 15 & 16 points on TU and EX for AoYA crossing to 12 months.  I recall EQ being less, perhaps 8-9.

[Anonymous]

---

@Anonymous wrote:

I would say 15-20 is pretty common actually.  I believe I received 15 & 16 points on TU and EX for AoYA crossing to 12 months.  I recall EQ being less, perhaps 8-9.

---

I see... and could I expect a score decrease by the same amount if I open a new account, and AoYA reverts to zero? 

[Revelate]

Depends on scorecard: derogatory scorecards don't even have the reason code for new accounts (60D late or worse, any collection / PR / judgement = derogatory).

30D late is on the top "clean" scorecards and as a result new accounts do factor there.

Opening a new account on them only affects AAOA, and there's no benefit to AOYA ticking over a year either.

[Anonymous]

---

@Revelate wrote:

Depends on scorecard: derogatory scorecards don't even have the reason code for new accounts (60D late or worse, any collection / PR / judgement = derogatory).

30D late is on the top "clean" scorecards and as a result new accounts do factor there.

Opening a new account on them only affects AAOA, and there's no benefit to AOYA ticking over a year either.

---

Okay, I see. I do have derogs in my history - so I shouldn't expect a change in score when AoYA hits a  year? 

[Revelate]

Yeah, if you have any listed above you won’t get anything at one year.

On the other hand you can relentlessly abuse opening new accounts without taking a penalty except for if you cross an AAOA boundary.

I suppose that has some value when establishing credit.

[Anonymous]

---

@Revelate wrote:
Yeah, if you have any listed above you won’t get anything at one year.

On the other hand you can relentlessly abuse opening new accounts without taking a penalty except for if you cross an AAOA boundary.

I suppose that has some value when establishing credit.

---

I see. Thanks for the clarification. I will post if I see anything different at the one year mark. Just curious, though: does that remain the case so long as the info is on your account - i.e., 7 years? 

[jenrn123]

Any thought on how this would apply to mortgage scores? I'm applying in the summer and will have my AoYA reach 1 year in August. Unfortunately, it is a student loan which I will be renewing for my final year of grad school, so not sure if the risk of new loan reporting during the application process is worth the point gain I might get. I "think" I should be able to get through the application process fairly quickly as I am purchasing my mom's house, so no pre-approval or house shopping needed, only finding the best rate. If I can socialize (Revelate's terminology) a few potential lenders and get a good idea of terms before the application I may be able to pull it off.