Marie you know a lot about FICO scoring system so I'm wondering if you can answer this question (if anyone knows the answer please jump in): How does FICO determine the age of an open account? Logically you start with the date opened. Then is the present date considered or the date the creditor last updated the account? I have an installment account that is really paid off and closed. However, the creditor has not updated and it says "open, pays as agrees, never late". I would contact the creditor to get it updated however the account was paid off before the 2 yr mark. By leaving it open does FICO think it's older than 2yrs and enhancing my score?
I think the present date and the date opened is used to determine the age of the account because many people don't use cards for a while (sock drawer), but don't cancel them either because of age.
Thanks..sounds like I shouldn't contact creditor and leave account as is. The creditor did send me the contract and it says "paid in full". So if I need to show that it's paid in order to obtain credit, I have proof.
I asked Fair Isaac several questions about this. Age of account is simple: date opened is used. I was actually surprised at the answer for total age of accounts. They use the total age of all accounts, open and closed. Doesn't matter. very simple calculation.
Ok I'm a little slow Marie. Are you saying that it doesn't matter if the account is closes or not? In other words, all accounts open or closed get totaled according to the date opened and the today's date?
Marie, Do my 4 discharged BK accounts help my credit aging as they were opened 10 to 12 years ago and discharged 5 years ago in 97' ?? I know it's an odd question but I only have 12 item showing on my reports. They are a car loan from 91, the 4 bad accounts I mentioned, 2 credit cards from 98', and 4 credit cards and my Camry loan opened in the last 2 months. I posted my credit scores on another thread today. if you don't know, I will understand because this is kind of an off the wall question.
actually, this is pretty simple. the accounts will help your aging, but their derogatory nature will be hurting you too...
