Calculating Average Aging

[Anonymous]

I'm trying to determing how FICO determines average aging on accounts. I think I have the following right. Please correct me if wrong.

1. All Open Accounts are calculated

2. Primary Closed Accounts are calculated, closed Authorized User Accounts are not.

3. Accounts are counted in whole years only, not fractions. 2 years, 11 months counts as 2 years

Any idea on how AAoA fits into the bucket system?

I believe that there is a major bump at 5Years average aging. Can anyone add to this?

[CH-7-Mission-Accomplished]

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@Anonymous wrote:

I'm trying to determing how FICO determines average aging on accounts. I think I have the following right. Please correct me if wrong.

1. All Open Accounts are calculated

2. Primary Closed Accounts are calculated, closed Authorized User Accounts are not.

3. Accounts are counted in whole years only, not fractions. 2 years, 11 months counts as 2 years

Any idea on how AAoA fits into the bucket system?

I believe that there is a major bump at 5Years average aging. Can anyone add to this?

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Just curious, where did you get the info that closed AU accounts do not count towards average age of accounts?

I haven't calculated mine for about a year now, but I believe my closed AU accounts did factor in.  I will have to check again.

But what is the source of this info?

[Anonymous]

I have quite a mix of reports and open and closed AU accounts. I did the math using a variety of scenarios and potentials to compare against the AAoA listed on my FICO reports.

The only forumla that came back as working in every scenario to match the FICO AAoA listed was aging on all open or closed primary accounts (Revolving, Iinstallment, Mortgage) but not collection aging,  plus the age of all open AU accounts divided by the number of accounts.

I included anything listed as a primary, even charge-offs.

Worked to match up over 20 AAoA scenarios