General Credit Topics

[GreatCreditFor2012]

This part of Credit Cofusses me the most... Fico says my overall credit history is 1.6 and my aaoa is 1 year. How do they come up with that?? I opened my last account 8 months ago. Not 1 year ago... Please help me understand.

Opensky opend 6/11 $350limit

Cap1 opend 9/11 $500limit (Closing in March '13)

Carecredit opend 10/11 $1000limit

BBRZMC opened 12/11 $410limit (THINKING About closing this also In March '13)

Daniels Jewlers opened 1/12 $913limit

Fingerhut opened 2/12 $350limit (Closing March '13)

Cap1 opened 4/12 $750limit

[Croselx]

From what I understand AAoA is calculated adding the total age of all your accounts (open and closed) and dividing them by the number of accounts.

Example:

1 account is at 2 years

1 account is at 1 year

Total age of accounts: 3 years

Oldest account age: 2 years

AAoA: 1.5 years

If you had opened 2 accounts together with the second card you would be at 1.33 AAoA (2 + 1 + 2 (/3)). If you open a new account now you would be at 1.0 AAoA (2 + 1 + 0 (/3)).

Opening several accounts around the same time help in grouping inquiries and having them age all together, both will help when recovering lost points down the road.

Plus you will have less of an effect should you choose to add a card later on (AAoA wise).

** If something above is wrong feel free to correct it.

You have 7 accounts (I will be counting December)

1) 1 year 6 months

2) 1 year 3 months

3) 1 year 2 months

4) 1 year

5) 11 months

6) 10 months

7) 8 months

Total age of accounts: 88 months or 7.3 years.

AAoA: 1.048 years

Oldest account: 1 year and 6 months

Which is pretty close to 1 year (Some may not take into account this month as it still hasn't passed).

[SwiftTone]

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Croselx wrote:

From what I understand AAoA is calculated adding the total age of all your accounts (open and closed) and dividing them by the number of accounts.

Example:

1 account is at 2 years

1 account is at 1 year

Total age of accounts: 3 years

Oldest account age: 2 years

AAoA: 1.5 years

If you had opened 2 accounts together with the second card you would be at 1.33 AAoA (2 + 1 + 2 (/3)). If you open a new account now you would be at 1.0 AAoA (2 + 1 + 0 (/3)).

Opening several accounts around the same time help in grouping inquiries and having them age all together, both will help when recovering lost points down the road.

Plus you will have less of an effect should you choose to add a card later on (AAoA wise).

** If something above is wrong feel free to correct it.

You have 7 accounts (I will be counting December)

1) 1 year 6 months

2) 1 year 3 months

3) 1 year 2 months

4) 1 year

5) 11 months

6) 10 months

7) 8 months

Total age of accounts: 88 months or 7.3 years.

AAoA: 1.048 years

Oldest account: 1 year and 6 months

Which is pretty close to 1 year (Some may not take into account this month as it still hasn't passed).

---

Just a couple corrections from above:

AAoA is calculated from all accounts on the credit report. If an account is closed, but not reporting anymore(after 10 years) then it will not be factored into the calculations.

Secondly, for FICO scoring purposes, AAoA is scored in increments of 12 months/1 year. For example, 1 year 3 months and 1 year 11 months will both be scored as 1 year.

[Jutz]

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SwiftTone wrote:

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Croselx wrote:

From what I understand AAoA is calculated adding the total age of all your accounts (open and closed) and dividing them by the number of accounts.

Example:

1 account is at 2 years

1 account is at 1 year

Total age of accounts: 3 years

Oldest account age: 2 years

AAoA: 1.5 years

If you had opened 2 accounts together with the second card you would be at 1.33 AAoA (2 + 1 + 2 (/3)). If you open a new account now you would be at 1.0 AAoA (2 + 1 + 0 (/3)).

Opening several accounts around the same time help in grouping inquiries and having them age all together, both will help when recovering lost points down the road.

Plus you will have less of an effect should you choose to add a card later on (AAoA wise).

** If something above is wrong feel free to correct it.

You have 7 accounts (I will be counting December)

1) 1 year 6 months

2) 1 year 3 months

3) 1 year 2 months

4) 1 year

5) 11 months

6) 10 months

7) 8 months

Total age of accounts: 88 months or 7.3 years.

AAoA: 1.048 years

Oldest account: 1 year and 6 months

Which is pretty close to 1 year (Some may not take into account this month as it still hasn't passed).

---

Just a couple corrections from above:

AAoA is calculated from all accounts on the credit report. If an account is closed, but not reporting anymore(after 10 years) then it will not be factored into the calculations.

Secondly, for FICO scoring purposes, AAoA is scored in increments of 12 months/1 year. For example, 1 year 3 months and 1 year 11 months will both be scored as 1 year.

---

Is this 100% verified?

[SwiftTone]

---

Just a couple corrections from above:

AAoA is calculated from all accounts on the credit report. If an account is closed, but not reporting anymore(after 10 years) then it will not be factored into the calculations.

Secondly, for FICO scoring purposes, AAoA is scored in increments of 12 months/1 year. For example, 1 year 3 months and 1 year 11 months will both be scored as 1 year.

---

Is this 100% verified?

---

I found this info through research earlier in the year when I was micromanaging my portfolio.

Also, when you pull a report from myFICO, AAoA is always shown in full years, never additional months.

[llecs]

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SwiftTone wrote:

---

Just a couple corrections from above:

AAoA is calculated from all accounts on the credit report. If an account is closed, but not reporting anymore(after 10 years) then it will not be factored into the calculations.

Secondly, for FICO scoring purposes, AAoA is scored in increments of 12 months/1 year. For example, 1 year 3 months and 1 year 11 months will both be scored as 1 year.

---

Is this 100% verified?

---

I found this info through research earlier in the year when I was micromanaging my portfolio.

Also, when you pull a report from myFICO, AAoA is always shown in full years, never additional months.

---

+1. FICO rounds down AAoA to the nearest whole number and cannot go below 1 year.

[GreatCreditFor2012]

Thanx for all the help you guys... Never been good at math. EVER! LoL so how will closing them 3 Accounts March Affect my Aaoa?? Thanx for the help!!

[GreatCreditFor2012]

In March*

[llecs]

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GreatCreditFor2012 wrote:
....so how will closing them 3 Accounts March Affect my Aaoa?? Thanx for the help!!

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It won't. AAoA includes ALL OC accounts, whether opened or closed, good or bad.

[GreatCreditFor2012]

Well I also plan on adding 3 more Accounts in March. an Auto Loan, Credit Union CC and a Macy's Card. How will these 3 new Tradelines affect my Aaoa when i apply for them in March? Thank you guys for your Feed back!