General Credit Topics

[creditnocash]

so i did the math and even with my added new card my aaoa takes almost no hit! which is crazy. am i doing something wrong? 

i should be adding all accounts correct? i have no closed accounts. so lets see. im just copying and pasting from excel.

6,5,6,5,27,25,12,6,6,4 +1 month for new card and installment loan included think it counts since sep even though it was opened aug 30th. or in longer format 

5 Citizens
4 Citizens
1 Citizens
5 Freedom
4 Zync
26 Best Buy
24 Macy's
11 Kohls
5 American Eagle
5 Walmart
4 Toyota

(number is by months ive had the account counting from the first day of account)

so my aaoa goes from 9.8month to 9 months and then to 10 months next month? how does that even make sense. 

so if this is correct i just made the best desicon ever anyways, as only time will heal this. 

esentially i got an inq free 5k limit card and almost no aaoa hit. 

how is this possible. 

will be pulling my reports for sure in jan. 

[oogy]

It is because you have so many accounts with an already relatively low aaoa.  I didn't redo the math to check you, but that sounds about right.   If you've got 10 cards and you add one new one, the average is going to drop by about 10% (actually less than 10%) Which is basically what you're seeing here.  10% isn't all that much when the aaoa is already under 10 months - but if it was 10 years, you'd lose a year rather than a month. 

(Though losing 1 year off of 10 still leaves you with a 9 year aaoa, and you're better off than if you only had 4 accounts and lost 2 years by adding a new one...)

[Cdnewmanpac]

Although I get 8.5 months, it doesn't really matter. This is one of the reasons people advocate app sprees. the people worrying about the impact of new cards on AAoA atho typically those with a long AAoA and few accounts. I have 11student loans, all about 10 years old and all reporting twice (servicer changed), so don't see big changes either

[creditnocash]

Well then looks like ill be just waiting for my second Amex app when I hit a year which is just after march (still get a years worth pf backdating)when 5 of my stupid inquiries age over a year.

[llecs]

Per FICO scoring know that AAoA is always rounded down to the nearest whole number though it'll never go below one year. So, your AAoA is 1 year now. I didn't look at your math either, but if you have 10 months, your AAoA will change from 1 year to two years in 14 months provided nothing is added or removed. Be sure to include closed accounts too if not already factored in.

[creditnocash]

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llecs wrote:

Per FICO scoring know that AAoA is always rounded down to the nearest whole number though it'll never go below one year. So, your AAoA is 1 year now. I didn't look at your math either, but if you have 10 months, your AAoA will change from 1 year to two years in 14 months provided nothing is added or removed. Be sure to include closed accounts too if not already factored in.

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hmm so to all creditors and fico its going to be 1 year until march of 14 awesome. 

might as well ask chase for the cli now then instead of august =)

[llecs]

It's always a YMMV on creditors. They each have their own standards when it comes to most recent credit, AAoA, length of history, etc.

[bs6054]

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oogy wrote:

It is because you have so many accounts with an already relatively low aaoa.  I didn't redo the math to check you, but that sounds about right.   If you've got 10 cards and you add one new one, the average is going to drop by about 10% (actually less than 10%) Which is basically what you're seeing here.  10% isn't all that much when the aaoa is already under 10 months - but if it was 10 years, you'd lose a year rather than a month. 

(Though losing 1 year off of 10 still leaves you with a 9 year aaoa, and you're better off than if you only had 4 accounts and lost 2 years by adding a new one...)

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Right, and of course the more accounts you have, the smaller the impact.  SO my CR shows around 40 open and closed accounts, so even with a new 20 year backdate from AMEX, the increase in AAOA isn't that dramatic.