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shackrat

Effect on AAOA from auto Loan open 1 day.

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One of my key negative score factors is a short AAOA of 4 years. This is something I am trying to improve, which I know short of waiting there isn't much I can do. However, I do have one account, an auto loan that was originated then cancelled the following day due to the vehicle having a serious defect. I'm wondering if this loan, which if from my local credit union, which is reporting as being opened and closed in the same month is impacting my AAOA significantly. It's a positive account, and is reporting as paid.

 

Since my AAOA sits at exactly 4 years, should I press the credit union to remove the TL? They are very strict about reporting accurate information to the bureaus, and I normally wouldn't even consider removing a positive TL, even one that's been opened for 1 day. I think removing this one account would help, but want to be sure before I do anything. My Fico 8's range in the upper-720s - mid 730's across all 3 bureaus, util is at 10%, and the only derogs are 4 - 30 day lates on Ocwen from 2015 now which is now closed. I don't want to expend the time and effort unless it will make a difference.

 

What course of action should I take?

 

 

 

For those wondering, here's the story...

 

Last August (2017) I purchased a used F-250 pickup from a local Ford dealer, financed through my local credit union. I closed on the loan on a Thursday, picked up the check, and went to the dealers to pick up the truck. I returned the truck the next day due to a massive electrical/computer problem. The truck was fine on the test drive, and was fine on the first 20 minutes driving it home, but then the multiple systems failure warnings started appearing on the console. The dealer was outstanding in how they handled it (which is rare). They knew we were going on a 9 day vacation starting on that Saturday and really bent over backwards to help. When I brought the truck back the next morning (Friday), they immediately pulled a tech from another job to diagnose it. A couple hours later they determined it would take a week or more to get the parts to fix and offered to cancel the deal, which I accepted. They also offered me a brand new (albeit less-equipped) F-250 pickup from the lot, extended friends & family pricing, and even offered to prep and deliver it while I waited that day. I accepted this too. I contacted my credit union who also went out of their way to make sure the paperwork was rushed through so I was able to take delivery. They did mention a new loan would have to be written, but to have the dealer cash the check (which they had not) since the loan amount was not changing. I suspect this is the reason why the one account is reporting.

 

 

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Glad you found us here at CB. Folks here will be glad to offer you advice.

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Yeah, my credit score has long listed AoAA as a negative.

 

4 years is plenty. My scores were all over 800 before I reached 4 years.

 

The 4 lates from 2015 are what's dropping your score and I doubt removing the auto loan would matter at all. It might even make things worse because it also shows credit diversity. But likely it wouldn't do much at all. Peeps often talk about AoAA but the bigger factor is age of oldest account. AAOA becomes significant if it's under 3 years. Especially if you have a lot of new accounts.

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One of my key negative score factors is a short AAOA of 4 years. This is something I am trying to improve, which I know short of waiting there isn't much I can do. However, I do have one account, an auto loan that was originated then cancelled the following day due to the vehicle having a serious defect. I'm wondering if this loan, which if from my local credit union, which is reporting as being opened and closed in the same month is impacting my AAOA significantly. It's a positive account, and is reporting as paid.

 

Since my AAOA sits at exactly 4 years, should I press the credit union to remove the TL? They are very strict about reporting accurate information to the bureaus, and I normally wouldn't even consider removing a positive TL, even one that's been opened for 1 day. I think removing this one account would help, but want to be sure before I do anything. My Fico 8's range in the upper-720s - mid 730's across all 3 bureaus, util is at 10%, and the only derogs are 4 - 30 day lates on Ocwen from 2015 now which is now closed. I don't want to expend the time and effort unless it will make a difference.

 

What course of action should I take?

 

 

 

For those wondering, here's the story...

 

Last August (2017) I purchased a used F-250 pickup from a local Ford dealer, financed through my local credit union. I closed on the loan on a Thursday, picked up the check, and went to the dealers to pick up the truck. I returned the truck the next day due to a massive electrical/computer problem. The truck was fine on the test drive, and was fine on the first 20 minutes driving it home, but then the multiple systems failure warnings started appearing on the console. The dealer was outstanding in how they handled it (which is rare). They knew we were going on a 9 day vacation starting on that Saturday and really bent over backwards to help. When I brought the truck back the next morning (Friday), they immediately pulled a tech from another job to diagnose it. A couple hours later they determined it would take a week or more to get the parts to fix and offered to cancel the deal, which I accepted. They also offered me a brand new (albeit less-equipped) F-250 pickup from the lot, extended friends & family pricing, and even offered to prep and deliver it while I waited that day. I accepted this too. I contacted my credit union who also went out of their way to make sure the paperwork was rushed through so I was able to take delivery. They did mention a new loan would have to be written, but to have the dealer cash the check (which they had not) since the loan amount was not changing. I suspect this is the reason why the one account is reporting.

 

 

Where:
N = number of tradelines
age of the tradeline you propose to remove = 0.67yrs (given by you)
AAOA = 4yrs (given by you)
Your new AAOA would be:
(N x AAOA - .67) / (N-1)
You know the value of N but we don't so only you can answer your question.
But why are you so concerned with AAOA? It is insignificant compared to your 4 derogatives!
You should worry about more important things first.

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You will always get reason codes if you dont have perfect FICOs.

 

A 4 year AAOA is nothing to worry about. Work on negatives and manipulating utilization.

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Thank you to those who replied!

 

 

The 4 lates from 2015 are what's dropping your score and I doubt removing the auto loan would matter at all. It might even make things worse because it also shows credit diversity. But likely it wouldn't do much at all. Peeps often talk about AoAA but the bigger factor is age of oldest account. AAOA becomes significant if it's under 3 years. Especially if you have a lot of new accounts.

 

I am working on addressing the top 3 scoring factors as listed in order of impact; Payment History, Short Account History, Loan Balances.

Loan balances (auto & RV) will take time. Both were originated last year and are for 6 & 10 year terms, respectively. I've set up bi-weekly automatic payments on those to reduce the overall principle a bit faster.

 

As far as short account history, not much I can do, except investigate the benefits on the one short TL.

 

N = number of tradelines

Where:

age of the tradeline you propose to remove = 0.67yrs (given by you)
AAOA = 4yrs (given by you)
Your new AAOA would be:
(N x AAOA - .67) / (N-1)
You know the value of N but we don't so only you can answer your question.
But why are you so concerned with AAOA? It is insignificant compared to your 4 derogatives!
You should worry about more important things first.

 

 

I ran the math, I'll gain an about an 2 months on AAOA by removing the account. Probably not worth the effort.

 

I'm trying hard to get an Ocwen goodwill to the 4 lates which occurred between 12/14-5/15. I've written twice, to different addresses, and have been denied once, and never heard back on the second. I really want this one to go away. Ocwen doesn't have much incentive as I'm no longer a customer of theirs.

 

Certainly open to suggestions there.

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One of my key negative score factors is a short AAOA of 4 years. This is something I am trying to improve, which I know short of waiting there isn't much I can do. However, I do have one account, an auto loan that was originated then cancelled the following day due to the vehicle having a serious defect. I'm wondering if this loan, which if from my local credit union, which is reporting as being opened and closed in the same month is impacting my AAOA significantly. It's a positive account, and is reporting as paid.

 

Since my AAOA sits at exactly 4 years, should I press the credit union to remove the TL? They are very strict about reporting accurate information to the bureaus, and I normally wouldn't even consider removing a positive TL, even one that's been opened for 1 day. I think removing this one account would help, but want to be sure before I do anything. My Fico 8's range in the upper-720s - mid 730's across all 3 bureaus, util is at 10%, and the only derogs are 4 - 30 day lates on Ocwen from 2015 now which is now closed. I don't want to expend the time and effort unless it will make a difference.

 

What course of action should I take?

 

 

 

For those wondering, here's the story...

 

Last August (2017) I purchased a used F-250 pickup from a local Ford dealer, financed through my local credit union. I closed on the loan on a Thursday, picked up the check, and went to the dealers to pick up the truck. I returned the truck the next day due to a massive electrical/computer problem. The truck was fine on the test drive, and was fine on the first 20 minutes driving it home, but then the multiple systems failure warnings started appearing on the console. The dealer was outstanding in how they handled it (which is rare). They knew we were going on a 9 day vacation starting on that Saturday and really bent over backwards to help. When I brought the truck back the next morning (Friday), they immediately pulled a tech from another job to diagnose it. A couple hours later they determined it would take a week or more to get the parts to fix and offered to cancel the deal, which I accepted. They also offered me a brand new (albeit less-equipped) F-250 pickup from the lot, extended friends & family pricing, and even offered to prep and deliver it while I waited that day. I accepted this too. I contacted my credit union who also went out of their way to make sure the paperwork was rushed through so I was able to take delivery. They did mention a new loan would have to be written, but to have the dealer cash the check (which they had not) since the loan amount was not changing. I suspect this is the reason why the one account is reporting.

 

 

I would leave a positive trade line with history alone... Don't do anything. It could drop your score

 

Sent from my SAMSUNG-SM-G920A using Tapatalk

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I would leave a positive trade line with history alone... Don't do anything. It could drop your score

Sent from my SAMSUNG-SM-G920A using Tapatalk

 

Welcome to CB! :wave:

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I would leave a positive trade line with history alone... Don't do anything. It could drop your score

Sent from my SAMSUNG-SM-G920A using Tapatalk

Welcome to CB! :wave:

+1

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Kinda just as an afterthought, I don't think I have ever made a decision based on AAOA. or at least that I can remember.

 

Sent from my SM-N950U using Tapatalk

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Thank you everyone who responded. I have decided to leave that account alone.

 

So that leaves me to tackle Ocwen asking for a goodwill on the 4 lates. Two letters have been sent, one with a denial, and no response to the other. I also sent an e-mail to the EO Friday.

 

I don't think I'm going to get lucky here.

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Am I reading that right? A TEN year note on a vehicle? :swoon:

 

I know that prices on the F-series have skyrocketed in the past 20 years, but NO vehicle is worth financing for that length of time.

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Am I reading that right? A TEN year note on a vehicle? :swoon:

 

I know that prices on the F-series have skyrocketed in the past 20 years, but NO vehicle is worth financing for that length of time.

 

The way I read it, 10 years is on the RV, fwiw.

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