"Length of time revolving accounts have been established"

[Anonymous]

Does anyone have any information regarding this negative reason statement... what causes it, what exactly it's looking at, etc?  Do we think it's looking at AoYA, AoOA, AAoA, or some combination of them?

This is my second reason statement for both TU FICO 8 and TU FICO 4.

I'm going to assume it is only looking at open revolving accounts, as I have closed revolvers on my reports that are > 17 years in age. 

When looking at open revolvers, my oldest open is only 40 months.  My youngest is 13 months.  I'm a bit too lazy at this exact moment to determine my AAoA of just revolvers (open vs open+closed) but I sort of have my doubts that the FICO algorithm is really looking at that.  Since both my youngest open revolver and oldest open revolver are quite young generally speaking, I've got multiple variables that could be generating this negative reason statement.  It would be cool to hear from anyone that due to fewer variables or simply experience in seeing this statement go away to find out some data surrounding its departure.

[Anonymous]

My oldest open revolving account is 20 months and my youngest is 3 1/2 months. The weird thing is that I see this reason on letters from issuers even when CLI requests are approved.

[Trudy]

I'm perplexed as well.  I assume it is looking at AoYA, which is 2016 for me and no accts between 2008 and 2016.  Oldest is 1996.  Makes little sense.  I also receive "You have not established a long revolving and/or open ended account credit history" and "You have a short credit history".  My AAoA is 12.5 yrs.  All coming from TU only.

[Anonymous]

Hi Trudy. When you say your AoYA is 2016, can you confirm the number of months specifically? It really could range from 18-29 so. I'm sort of guessing it's under 24 months, as my hypothesis at this point is that it may go away at that point in time.

[Anonymous]

Joe, that reason statement under most circumstances wouldn't impact CLI results IMO. I've received plenty of CLIs in the last 2 years (probably 10+) with that negative statement being present. On an otherwise strong profile, I don't think it really matters all that much.

[Trudy]

Yes, it's under 24 months.  10/2016 last opened account.  Other than that, my next youngest account is 10/2008.  Statements from a 6/8/18 FICO report.

[Anonymous]

Gotcha, thanks for confirming that it was under 24 months.  I don't believe that the FICO algorithm looks at second youngest account, or "AoSYA" so even though there's a significant gap between your youngest and second youngest, I don't believe that would impact your negative reason statements any more than if you had opened one 20 months ago and then 23 months ago (for example). 

[Thomas_Thumb]

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@Anonymous wrote:

Does anyone have any information regarding this negative reason statement... what causes it, what exactly it's looking at, etc?  Do we think it's looking at AoYA, AoOA, AAoA, or some combination of them?

I'm going to assume it is only looking at open revolving accounts, as I have closed revolvers on my reports that are > 17 years in age. 

When looking at open revolvers, my oldest open is only 40 months.  My youngest is 13 months.  I'm a bit too lazy at this exact moment to determine my AAoA of just revolvers (open vs open+closed) but I sort of have my doubts that the FICO algorithm is really looking at that.  Since both my youngest open revolver and oldest open revolver are quite young generally speaking, I've got multiple variables that could be generating this negative reason statement.  It would be cool to hear from anyone that due to fewer variables or simply experience in seeing this statement go away to find out some data surrounding its departure.

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Length of time something has been established= age of oldest.

As we know length of credit history = age of oldest account on file. This factor is sometimes divided into sub categories: revolving accounts vs installment loans. When there is reference to activity the attribute is targeting open accounts.

I discussed having a reason statement "opening a new account relatively recently" in another thread. I had that statement with mu most recent account being 2 years old and continued to have it at over 4 years age. It disappeared sometime after the account (BB store card) aged to 5 years.

I suspect this metric is looking at oldest active revolving account and the threshold for losing the demerit is potentially 60 months.

[Anonymous]

Good info.  TT, in your opinion to do you have any sort of educated guess what sort of scoring impact we're talking when reaching the 5 year mark?  I'm assuming only a couple of points, but would be interested to hear your take on it.

[Thomas_Thumb]

It probably depends on the Fico model. I really have no useful score related data points for this attribute but, impact must be trivial.