Credit Report Discrimination!?

Question

According to MYFICO.COM, "Your FICO score measures the age of your oldest account and the average age of your accounts." So what this translates to is: Age Discrimination! They also say, "FICO High Achievers opened their oldest account 19 years ago, on average." How are we, in our twenties, supposed to have THAT long of a credit history? Or do lenders take into consideration our age and then understand why we have such a short credit history? ( 15% of our score is based on LENGTH ) In my opinion, they are basically saying the older we get, the less of a risk we become?? NOT ALWAYS TRUE

bdancer222:I am simply asking a question since FICO considers a short credit history a negative factor, so it WOULD seem that way. That is why I am seeking out OTHERS opinions.

Answer 1

Most young adults don't have anything to hold them over when they hit hard times. It is when the going gets tough you find which ones will do anything before stiffing creditors and which will give up and just not pay. The score has nothing to do with income or assets so they only see if you pay as agreed or not.
When a child gets sick or worker gets unemployed or a tornado makes them homeless people who are established better in life tend to be better about paying their bills.
The young haven't been tested so we can only hope they have emergency funds, home equity, assets they would be willing to sell. It is the same reason you need two years employment history to buy a home.
I am 60 and have paid all bills on time forever, I hit bad times, divorce, unemployment, broken leg and never was late on a bill, I once had 3 mortgages and a renter I had to evict but was never late on a bill.
You won't see a 20 year old that can show they are able and willing to pay no matter what. Some will buy a car on credit and furniture on credit paying minimum payments then the first bad year they can't even make the minimum. Of course the youth that doesn't buy cars on credit and waits until they can pay cash before using credit can handle it but the lenders don't know that until their is many years of history.
You will be less risk when you are older, your net worth will be higher, your job skills better and you will more understand the importance of keeping your word no matter what.

Answer 2

it isn't age discrimination, it is the law of when you can
start applying for credit. You start credit history by paying all your bills on time and they are in your name under your
social security number. Get a copy of your reports and
pay for a FICO Score. See what's is or isn't on it.
If you have no credit, Start with a gas card and a Department
Store Card, even if you can pay the balance in full at the end
of the month DO NOT, you want to establish a credit history
of making on time payments (just send extra not the minimum)
but choose wisely don't go applying for everything under
the sun because all those inquiries stay on your report.
If you live at home, get a gas card, a department store card,
try for a credit card (shop around) and a cell phone. But do NOT spend beyond your means. Pay everything ON TIME
or a WEEK EARLY. You never know what live will bring
(a job lay-0ff, car accident, health problems) can take anyone
at ANY AGE from being Excellent to Zero !!!!

Answer 3

What they are saying is that the longer you have a good payment history, the less likely you will be to default. It isn't just the AGE; it's the on time payment history.

Pay your bills on time and in 20 years you'll be a "high achiever".

By the way, I don't like to see people cry "discrimination" over every little thing. It diminishes REAL discrimination.

ADD: The age of the person has nothing to do with the credit score. It is all based on consistent, on time payments. The longer the history, the better the score. It's a logical and fair assessment of risk.

Just like in the job market, my 20 years experience is going to get a better salary than your 2 years.

Answer 4

It is not age discrimination. It is weighing a 40 year old's 20 years of good payment history against a 22 year old's 2 years of good payment history.

That doesn't mean the older you get the less of a risk you become. Ask any 40 yr old with bad credit.

You are better off being the 22 yr old with 2 yrs of good history, rather than the 40 year old with bad or so-so history. The ones who benefit the most are the 40 yr olds with consistent, good history for 20 years. As it should be.

Answer 5

No, because older persons have more time to rack up late payments, collections, bankruptcies, and other bad things. So young persons have the advantage.

Answer 6

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Answer 7

Your credit score is made up of the following;

1. Payment history 35%
2. Time in bureau 15%
3. Types of credit 10%
4. New credit 10%
5. Debt to credit ratio 30%

As you can see 1,2&5 are the most important as far as score goes. I look at credit every day and see young people with very good scores 700 and up.

The thing you have to realize is you need much more then just a good score, you also need a good profile this will require 3 credit card accounts (revolving) with balances below 30% of your credit limit and 2 cars, boats, homes, furniture or personal accounts (installment) all with good long payment history's.

Good credit takes years to establish and only a couple of months to trash if you do not manage it will.