When AoYA Reaches One Year...

[Anonymous]

SHJ, the score increase received when you reach 12 months AoYA is often less than the score decrease from opening a new account when your AoYA is > 12 months and resets to 0 months.

The reason for this is that with a new account usually an inquiry is at play, but also the AAoA drop can be significant with the opening of a new account, especially on a thin file relative to the AAoA gain (1 month) when AoYA ticks to 12 months.

[Revelate]

Yep as long as on a derogatory scorecard for either FICO 8 or FICO 04 variants (EQ / TU mortgage scores for example) this holds true.

Actually if you have a strong enough file this is pretty easy to see on TU FICO 4: will get to three reason codes and no 4th, nothing about new accounts and as soon as the derogatory item drops off if you have a recent account poof it shows up.

Direct experience, twice, on that one.

I didn’t have access to EX FICO 2 at the time that I was dirty on EX but I suspect it is the same.

If you are on any of the clean scorecards, namely nothing worse than a 30D late, then new accounts are something of a big deal especially on the mortgage scores

[Yeliaba1]

AoYA hit one year and saw no change across all three CRAs.  I do have derogs (90 day lates and accounts IIB) across all three.

[Anonymous]

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@Anonymous wrote:
SHJ, the score increase received when you reach 12 months AoYA is often less than the score decrease from opening a new account when your AoYA is > 12 months and resets to 0 months.

The reason for this is that with a new account usually an inquiry is at play, but also the AAoA drop can be significant with the opening of a new account, especially on a thin file relative to the AAoA gain (1 month) when AoYA ticks to 12 months.

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I would just clarify the INQ points are separate and will come back in 365 days, NOT on the 1st with AoYA points. However, one reason you would not realize the same points at 12 months is because some of those are awarded at 3 and 6 months, it is theorized and I also believe. Plus, as you state, if AAoA is affected (would be more so on thin) that would also affect score.

[Revelate]

The recent data I got on EX FICO 8 at least suggests a change from the older models, as a result it wouldn't surprise me at all if there's breakpoints under a year or a pattern, and as such I don't expect to get all the points I lost back once my newest account ticks over a year... probably will get something as time passes.