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Contributor
GreatCreditFor2012
Posts: 95
Registered: ‎02-26-2012
0

What is AAOA And how the world is it Caluclated

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





Contributor
Croselx
Posts: 139
Registered: ‎07-31-2012
0

Re: What is AAOA And how the world is it Caluclated

[ Edited ]

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).

As of Feb: AAoA 1 year, 10 months
CK TU: 740; Wal-Mart TU FICO: 721
CS EX: 715
8 CCs, 15 total accounts.
Negs on report: 1 30 day late aged 3 years
5 inquiries
Established Contributor
SwiftTone
Posts: 1,024
Registered: ‎02-27-2012
0

Re: What is AAOA And how the world is it Caluclated


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.

BCE: $0/$11,200, CSP: $0/$6500, Chase Priority Club: $0/$3500, Freedom: $0/$5000, Barclays NFL: $0/$7000 Discover: $0/$10,000, Citi Dividend: $0/$3500

EQ FICO - 742
TU FICO - 734
EX FICO(AMEX) - 712
Valued Contributor
Jutz
Posts: 1,216
Registered: ‎05-10-2012
0

Re: What is AAOA And how the world is it Caluclated


SwiftTone wrote:

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?

  • Current: EQ FICO 694, TU FICO 695, EX FICO 698 | Starting Score: 525 (05/2012)
  • Starting total revolving credit: $1100 | Current total revolving credit: $29,500
  • Inquiries (12 Months): EQ 6 TU 3 EX 6 | Most Recent: 1/21/2014
Chase Freedom $5000
DCU Visa $10000
Capital One QS $2000
AMEX BCE $1000
Lowe's CC $8500
WalMart CC $2400
BOA Platinum $600
AMEX Gold NPSL
Established Contributor
SwiftTone
Posts: 1,024
Registered: ‎02-27-2012
0

Re: What is AAOA And how the world is it Caluclated

[ Edited ]

 


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.

BCE: $0/$11,200, CSP: $0/$6500, Chase Priority Club: $0/$3500, Freedom: $0/$5000, Barclays NFL: $0/$7000 Discover: $0/$10,000, Citi Dividend: $0/$3500

EQ FICO - 742
TU FICO - 734
EX FICO(AMEX) - 712
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: What is AAOA And how the world is it Caluclated


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.

Contributor
GreatCreditFor2012
Posts: 95
Registered: ‎02-26-2012
0

Re: What is AAOA And how the world is it Caluclated

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!! :smileyhappy:



Contributor
GreatCreditFor2012
Posts: 95
Registered: ‎02-26-2012
0

Re: What is AAOA And how the world is it Caluclated

In March*



Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: What is AAOA And how the world is it Caluclated


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


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

Contributor
GreatCreditFor2012
Posts: 95
Registered: ‎02-26-2012
0

Re: What is AAOA And how the world is it Caluclated

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!




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