Improving Average Age of Accounts Possible?

[Anonymous]

Hello all

Is it possible to ask creditors to stop reporting closed accounts that have zero balances and are in good standing to the CRA's so that I can improve my Avg. Age of Accounts? If so, I could easily increase my AAoA by a few years and see a double digit FICO point score jump.

Please advise.

Thanks in advance.

[llecs]

Are you saying that these accounts are younger than your AAoA right now?

[Anonymous]

Thnaks for the reply llecs,

Yes, a number of my accounts are younger than my AAoA.

For example, one account was a home mortgage that was taken out about 1.5 years ago. It was sold to another lender after only one month so no payment history was actually recorded. However, it's being reported and therefore shortening my AAoA. I have other examples too of accounts that were paid off and in good standing that are loweing my AAoA.

[llecs]

If younger than your AAoA, then their removal would help your AAoA. If that changes your AAoA by years, then it could possibly help. You can always ask them to delete. 

[RobertEG]

If the creditor stops reporting, that wont make a difference.  All accounts, open and closed, are included in your AAoA.  Stopping further reporting is not the same as account deletion.

Most credtiors dont update closed accounts in good standing, and stop reporting on their own initiative due to lack of any reason to continue reporting.  So your last reported status and credit file just remains static.

To get an account removed from your AAoA calculation, you would have to get the OC to report its entire deletion to the CRA, 

Additionally, while the old accounts are not included in other aspects of FICO scoring, you may want them to remain in your CR for their useful viewing by future creditors in any manual review of your credit report.

All in all, I would leave them alone.

[iDShaDoW]

I'm curious now, do closed accounts eventually fall off your report after a pre-determined period of time (similar to derogatories and bankruptcies, etc.)?

I can definitely understand why someone might want to get a closed account removed if the age on it is something like 1 year (lower your AAoA by 50%) or half the age of your oldest account (lower your AAoA by 25%).

Although if the AAoA isn't worth too many points on your FICO (I personally have no idea how much weight it carries), it might be better to leave it like RobertEG recommends.

[MarineVietVet]

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@iDShaDoW wrote:

I'm curious now, do closed accounts eventually fall off your report after a pre-determined period of time (similar to derogatories and bankruptcies, etc.)?

I can definitely understand why someone might want to get a closed account removed if the age on it is something like 1 year (lower your AAoA by 50%) or half the age of your oldest account (lower your AAoA by 25%).

Although if the AAoA isn't worth too many points on your FICO (I personally have no idea how much weight it carries), it might be better to leave it like RobertEG recommends.

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Generally closed accounts will report for about 10 years after closing but sometimes they will disappear early and a few lucky folks have accounts that remain after that 10 year period and that's a good thing because it continues to help their AAoA and credit length history.

IMO the AAoA is pretty important. FICO High Achievers (A score of 760+) have an average AAoA of 6-12 years.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[happy0510]

I have the same exact issue.  My mortgage closed 12/2010 and reported pretty quickly by the OC.  It was transferred within 2 weeks and the new holder just started reporting last week.  However, they back dated and reported the same exact date as the OC.  Wouldn't this mean it would be completely irrelevant to have the original one removed?  2 Accounts opened on the same day?  I could be wrong!

[Anonymous]

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@happy0510 wrote:

I have the same exact issue.  My mortgage closed 12/2010 and reported pretty quickly by the OC.  It was transferred within 2 weeks and the new holder just started reporting last week.  However, they back dated and reported the same exact date as the OC.  Wouldn't this mean it would be completely irrelevant to have the original one removed?  2 Accounts opened on the same day?  I could be wrong!

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It depends on timing.  If you look at it now - it's probably lowering your AAofA because both accounts report as young (4 months old).

However, in 5 or 8 or 10 years, it may be a plus - you'll have two accounts reporting as old (5 or 8 or 10 years old).  The first mortgage will (probably) age off (about) ten years after the last activity.  The new mortgage holder will continue to report for (about) ten years after the last activity on that account.

DH has a mortgage which reports twice.  We haven't disputed it (it's actually one mortgage which is double reporting) because it's helping his AAofA at this point.

[happy0510]

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@Anonymous wrote:

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@happy0510 wrote:

I have the same exact issue.  My mortgage closed 12/2010 and reported pretty quickly by the OC.  It was transferred within 2 weeks and the new holder just started reporting last week.  However, they back dated and reported the same exact date as the OC.  Wouldn't this mean it would be completely irrelevant to have the original one removed?  2 Accounts opened on the same day?  I could be wrong!

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It depends on timing.  If you look at it now - it's probably lowering your AAofA because both accounts report as young (4 months old).

However, in 5 or 8 or 10 years, it may be a plus - you'll have two accounts reporting as old (5 or 8 or 10 years old).  The first mortgage will (probably) age off (about) ten years after the last activity.  The new mortgage holder will continue to report for (about) ten years after the last activity on that account.

DH has a mortgage which reports twice.  We haven't disputed it (it's actually one mortgage which is double reporting) because it's helping his AAofA at this point.

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Well Beam,

I checked my TU yesterday and i'm at 680 with both accounts showing.  This is maybe a 10 point bump with both showing.  AAoA dropped down to 2 years from 3 years. Waaa! Now i'm really scared.  My oldest account (baddie) is coming off as we speak.  What's the lowest you can possibly go in AAoA? I have feeling i'm headed there at the bottom of my new bucket  The only light at the end of the tunnel is the simulator's best action has me at 800-820 in 24 months!!

I hope this helps you OP!!

Edited to Add: The simulator also puts me over 700 with lowering some util so I should be happy right? Lol I am....I started this journey in the DUMPS!