Reply
New Member
bleech2
Posts: 2
Registered: ‎08-17-2013

AAoA calculation - how precise is it?

I'm wondering how precisely the official AAoA calculation is made, as I'm trying to create a spreadsheet to keep track of mine.  For instance, if I opened  a card 15 days ago, does that card count as 0.5 months old in an AAoA calculation, or does it remain at 0 until a full month passes?  

Community Leader
Valued Contributor
DaveSignal
Posts: 2,039
Registered: ‎07-29-2011

Re: AAoA calculation - how precise is it?

[ Edited ]

It is rounded down to the year, but cannot be less than 1. Anything from 0 months to 23 months counts as 1 year AAoA.  24 up until 35 months counts as 2 years AAoA.  And so on.

 

ETA:  this is for all cards combined, of course.   For an individual card, you would count the months from the date opened and add it to the total.  Only whole months count.  Add all of the months from all of your accounts together and then divide by the number of accounts.  Then round down to the nearest year, as mentioned above.

EQ:701 TU:745 EX:694
Barclays Arrival $6.5k - BoA Travel Rewards $15k - SDFCU EMV $15k - NFCU goRewards $20k - CSP $5k - Amex ED $19.5k
Contributor
elvigy
Posts: 83
Registered: ‎07-27-2013

Re: AAoA calculation - how precise is it?

What about closed accounts? Do you only count the months that it was open? Or from when the account was opened until now including the months that it was closed? For example, I have a Citi credit card that was open from 2001 to 2009. Does that count as 8 years or 12?

Amex BCE | Barclaycard Arrival WMC | Chase Slate | Discover IT
New Member
bleech2
Posts: 2
Registered: ‎08-17-2013

Re: AAoA calculation - how precise is it?

Thanks!

Community Leader
Valued Contributor
DaveSignal
Posts: 2,039
Registered: ‎07-29-2011

Re: AAoA calculation - how precise is it?


elvigy wrote:

What about closed accounts? Do you only count the months that it was open? Or from when the account was opened until now including the months that it was closed? For example, I have a Citi credit card that was open from 2001 to 2009. Does that count as 8 years or 12?


A card open in 2001 (earlier than the current month) would count as 12 years, regardless of the date it was closed.  You should calculate each account in months though, then divide, then round down to the nearest year.

EQ:701 TU:745 EX:694
Barclays Arrival $6.5k - BoA Travel Rewards $15k - SDFCU EMV $15k - NFCU goRewards $20k - CSP $5k - Amex ED $19.5k
Contributor
elvigy
Posts: 83
Registered: ‎07-27-2013

Re: AAoA calculation - how precise is it?

Good to know. Thanks!
Amex BCE | Barclaycard Arrival WMC | Chase Slate | Discover IT
Moderator
Shogun
Posts: 12,883
Registered: ‎04-15-2011

Re: AAoA calculation - how precise is it?


elvigy wrote:
Good to know. Thanks!

Yup...  I learned something too.  That's the wonderful part of these forums.  :smileyhappy:  Thanks Dave!


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Frequent Contributor
Kratos-TM
Posts: 426
Registered: ‎05-23-2013

Re: AAoA calculation - how precise is it?

Let me get this straight......If a new account was opened yesterday, it gets 12 months automatically into the calculation, because nothing can be less than 1?

Myfico scores.....
EX08... 800 (11-10-13)
EQ04... 790 (12-02-13)
TU08... 810 (12-02-13)
Frequent Contributor
OhioCPA
Posts: 446
Registered: ‎03-29-2011

Re: AAoA calculation - how precise is it?


Kratos-TM wrote:

Let me get this straight......If a new account was opened yesterday, it gets 12 months automatically into the calculation, because nothing can be less than 1?


It's the average that can't be below 1 year. That new account will count as zero for calculation of the average age.

________________________________________________________________________________
Chase Sapphire Preferred, Amex Hilton Honors Surpass, Amex BCE, BOA Travel Rewards, Amex MB Platinum
Frequent Contributor
Kratos-TM
Posts: 426
Registered: ‎05-23-2013

Re: AAoA calculation - how precise is it?


OhioCPA wrote:

Kratos-TM wrote:

Let me get this straight......If a new account was opened yesterday, it gets 12 months automatically into the calculation, because nothing can be less than 1?


It's the average that can't be below 1 year. That new account will count as zero for calculation of the average age.


Alright next question......let's say this new account is 11 months old. Does FICO still calculate it as zero in the AAoA equation or does the 11 months get factored?

If your answer is zero, then that means that we should see a bump in AAoA when the new accounts hit 1 year (because they were counted as zero the entire 11 months).

Myfico scores.....
EX08... 800 (11-10-13)
EQ04... 790 (12-02-13)
TU08... 810 (12-02-13)

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+