cancel
Showing results for 
Search instead for 
Did you mean: 

Average Age of Accounts Question

tag
docrob24
Member

Average Age of Accounts Question

Fellow Gardeners,

 

I was just approved for a 7k Flagship Rewards card, thus reducing my overall credit utilization and also reducing my AAoA.

 

I just opened a Cap1 QS a month ago, and it only has a CL of 500.

 

Will closing my meager Cap1 card increase my AAoA?

 

I've ready that there are two separate Average Ages that companies look at. One for OPEN accounts, and one for ALL accounts.

 

Please and thank you.

NFCU NavCheck LOC $15k I NavyFed Flagship $7k I NavyFed Platinum $10k
Military Star $2.5 I CapitalOne QS $500 I GE AshleyHomes $1k
Scores: EQ:654 (FICO ↑ 100 from Sep 13') Goal: 700 + AMEX.
In the garden until April 2016 **Except those SP CLIs**
Message 1 of 9
8 REPLIES 8
docrob24
Member

Re: Average Age of Accounts Question

I think I'm the only one with zero replies.

 

Guess I'll be the first and OP.

NFCU NavCheck LOC $15k I NavyFed Flagship $7k I NavyFed Platinum $10k
Military Star $2.5 I CapitalOne QS $500 I GE AshleyHomes $1k
Scores: EQ:654 (FICO ↑ 100 from Sep 13') Goal: 700 + AMEX.
In the garden until April 2016 **Except those SP CLIs**
Message 2 of 9
gdale6
Moderator Emeritus

Re: Average Age of Accounts Question


@docrob24 wrote:

Fellow Gardeners,

 

I was just approved for a 7k Flagship Rewards card, thus reducing my overall credit utilization and also reducing my AAoA.

 

I just opened a Cap1 QS a month ago, and it only has a CL of 500.

 

Will closing my meager Cap1 card increase my AAoA?

 

I've ready that there are two separate Average Ages that companies look at. One for OPEN accounts, and one for ALL accounts.

 

Please and thank you.


Closing cards does not affect AAoA for up to 10 years as they stay on file typically 10 yrs post close.

Message 3 of 9
docrob24
Member

Re: Average Age of Accounts Question

Thanks for the clarification.

 

Read someone on here it was Average Age of "OPEN" Accounts.

 

Again, thanks.

NFCU NavCheck LOC $15k I NavyFed Flagship $7k I NavyFed Platinum $10k
Military Star $2.5 I CapitalOne QS $500 I GE AshleyHomes $1k
Scores: EQ:654 (FICO ↑ 100 from Sep 13') Goal: 700 + AMEX.
In the garden until April 2016 **Except those SP CLIs**
Message 4 of 9
user5387
Valued Contributor

Re: Average Age of Accounts Question

There may be more than one AAoA formula, but you then have to ask which scoring models use which formulas.

 

I believe that FICO scoring uses only the AAoA formula that takes both open and closed accounts into consideration.

 

Message 5 of 9
docrob24
Member

Re: Average Age of Accounts Question

Thanks for further clarifying that.

 

Since thats what FICO uses, I'll base future decisions with that thought in mind.

 

Appreciate it.

NFCU NavCheck LOC $15k I NavyFed Flagship $7k I NavyFed Platinum $10k
Military Star $2.5 I CapitalOne QS $500 I GE AshleyHomes $1k
Scores: EQ:654 (FICO ↑ 100 from Sep 13') Goal: 700 + AMEX.
In the garden until April 2016 **Except those SP CLIs**
Message 6 of 9
myjourney
Super Contributor

Re: Average Age of Accounts Question


@user5387 wrote:

There may be more than one AAoA formula, but you then have to ask which scoring models use which formulas.

 

I believe that FICO scoring uses only the AAoA formula that takes both open and closed accounts into consideration.

 


Correct about Fico 

 

Whereas CK Fako does not count closed accounts 

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 7 of 9
docrob24
Member

Re: Average Age of Accounts Question

Not sure if anyone here will get an update on this question, but how about collection accounts? Do those factor into AAoA?

NFCU NavCheck LOC $15k I NavyFed Flagship $7k I NavyFed Platinum $10k
Military Star $2.5 I CapitalOne QS $500 I GE AshleyHomes $1k
Scores: EQ:654 (FICO ↑ 100 from Sep 13') Goal: 700 + AMEX.
In the garden until April 2016 **Except those SP CLIs**
Message 8 of 9
gdale6
Moderator Emeritus

Re: Average Age of Accounts Question


@docrob24 wrote:

Not sure if anyone here will get an update on this question, but how about collection accounts? Do those factor into AAoA?




No, only OCs are included in AAoA.

Message 9 of 9
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.