Does a personal loan count toward average age of accounts?

[jasonkm1]

If I take out a debt consolidation loan from my credit union, will it count toward my aaoa? I have a really low aaoa at 2.8 years and am gardening for a couple years.

[user5387]

Are you referring to an installment loan?  If so, then it should factor into your AAoA.

If your current AAoA is 2.8 years with N accounts, then adding an account should result in a new AAoA according to this formula:

   (N * 2.8) / (N + 1)

So if N is 5, the total age is 14.0 years, and dividing 14.0 by 6 gives 2.33 years.

[jasonkm1]

Thanks for the info -- I never bothered to figure out the formula, this helps a lot! So I did it and my aaoa will drop drop to 2.5 years, which I guess isn't too bad. I'll pay off all my cards so I guess the good will outweigh the bad.