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New Member
jhodge31
Posts: 3
Registered: ‎01-31-2013

AAoA/credit scores

Hi, so I'm set to have several accounts (4) removed from my credit report in 2013. Almost all of these accounts were settled and I paid less than the full amount, but I no longer have any outstanding accounts. My scores are finally starting to rise and are 640, 641 and 681. Since those accounts were set to drop off I thought my score would go even higher, but from what I've read they might actually decrease because of AAoA. Since those cards, I had a secured card I opened a few years ago, but then closed because I rarely used it. Any idea if my scores will increase or decrease? I've provided some additional details below. Any information is appreciated.  

 

Positive accounts (10)

5 citibank accounts (all one account, but 5 entries) refinanced, never late,  dates: 00,02,03,04

Capital Bank, opened 2010  - account I closed 2011

PRISM - 06-08 account I closed

Citibank - 05-11 student loan that was transferred

Sallie Mae - 11-current

Tower Federal Auto Loan - 06-2012 paid off

 

negative accounts

Judgment - removed in 2015 (might be removed this year- disputing)

Universal - 04-08 paid (removed in 2013)

Discover - 06-11 - paid

Chase - 03 - 08 - purchase (removed in 2013)

Capital - 03 - 08 - paid (removed in 2013)

 

 

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: AAoA/credit scores


jhodge31 wrote:

Hi, so I'm set to have several accounts (4) removed from my credit report in 2013. Almost all of these accounts were settled and I paid less than the full amount, but I no longer have any outstanding accounts. My scores are finally starting to rise and are 640, 641 and 681. Since those accounts were set to drop off I thought my score would go even higher, but from what I've read they might actually decrease because of AAoA. Since those cards, I had a secured card I opened a few years ago, but then closed because I rarely used it. Any idea if my scores will increase or decrease? I've provided some additional details below. Any information is appreciated.  

 

Positive accounts (10)

5 citibank accounts (all one account, but 5 entries) refinanced, never late,  dates: 00,02,03,04

Capital Bank, opened 2010  - account I closed 2011

PRISM - 06-08 account I closed

Citibank - 05-11 student loan that was transferred

Sallie Mae - 11-current

Tower Federal Auto Loan - 06-2012 paid off

 

negative accounts

Judgment - removed in 2015 (might be removed this year- disputing)

Universal - 04-08 paid (removed in 2013)

Discover - 06-11 - paid

Chase - 03 - 08 - purchase (removed in 2013)

Capital - 03 - 08 - paid (removed in 2013)


There's not enough information. AAoA is a part of FICO scoring and is calculated off the open date, vs. date paid or closed. I'm guessing these are status dates maybe? I'm mentioning that because your car loan lists a 2012 date and I'm assuming you didn't open the car loan and pay it off inside a few months.

 

AAoA includes OC accounts only. They exclude PRs or CAs. So, the judgment is excluded. What is PRISM?

 

Why would the 2008 accounts (e,g, Chase, Capital, Universal) be removed this year?

 

Finally, where did you get your scores from? Unless all 3 are from the same source and that source is a lender, none of the scores are FICO scores. Some FAKOs don't even calculate or figure in AAoA. Yet others do calculate AAoA, but only include open accounts, unlike FICO where they include all opened and closed OC accts. Oh, and some FAKOs, like TransRisk, do include the collections into age. I lost a CA once and my FAKO decreased. It was my oldest TL by years.

New Member
jhodge31
Posts: 3
Registered: ‎01-31-2013

Re: AAoA/credit scores

Hi llecs,

 

Sorry I wasn't more clear. The first number is the year opened and the second the year closed. For example my car loan was opened in 2006 and paid off in 2012.  My scores came from the credit reporting companies. I signed up for their trial memberships then canceled once I got the report and score. Maybe I missed it and they were FAKO scores. I know the Equiafax score is 680 for sure. I get that from them directly and it states it's FICO.

 

To answer your questions.

PRISM is a credit card. Can you spell out the abbreviations. I don't know what OCs PRs and CAs are. I can guess, but I want to be sure I completely understand.

 

My credit report stated those accounts would be removed. Each went to collections and then was settled for less than the amount owed, but are considered paid.


Thanks for your help.

 

 

 

Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007

Re: AAoA/credit scores


jhodge31 wrote:

Hi llecs,

 

Sorry I wasn't more clear. The first number is the year opened and the second the year closed. For example my car loan was opened in 2006 and paid off in 2012.  My scores came from the credit reporting companies. I signed up for their trial memberships then canceled once I got the report and score. Maybe I missed it and they were FAKO scores. I know the Equiafax score is 680 for sure. I get that from them directly and it states it's FICO.

 

To answer your questions.

PRISM is a credit card. Can you spell out the abbreviations. I don't know what OCs PRs and CAs are. I can guess, but I want to be sure I completely understand.

 

My credit report stated those accounts would be removed. Each went to collections and then was settled for less than the amount owed, but are considered paid.


Thanks for your help.

 

 

 


Welcome to the forums!

I'd suggest reading the following:

Common Abbreviations

Credit Scoring 101 - great for knowing what is in your credit score and to see how your score is impacted. 

 

The month it was opened is important too. But for math's sake, I'll assume they were all opened in January of that year:

 

Citi (1/2000) 158 months old through this month

Citi (1/2002) 134 months old

Citi (1/2003) 122 months old

Citi (1/2004) 110 months old

Citi (you mentioned 5 Citi accts. Only see 4 dates. Will assume 2004) 110 months old

Capital (1/2010) 38 months old

PRISM (1/2006) 86 months old

Citibank SL (1/2005) 98 months old

SM (1/2011) 26 months old

Tower (1/2006) 86 months old

Universal (1/2004) 110 months old

Discover (1/2006) 86 months old

Chase (1/2003) 122 months old

Capital (1/2003) 122 months old

 

14 accts. 1408 months combined. 1,408 divided by 14 = 100 months. 100 months divided by 12 = 8.3 years. If the dates are correct, and you have no other OC accounts reporting, then AAoA equals 8. FICO rounds down to the nearest whole number. Conversely, if the accounts were opened towards the end of the year, then AAoA equals 7 years. Knowing the exact open date is important.

 

You can cheat and find AAoA on your FICO report (most of the time). It's on pages 2 or 3 of your FICO report. Ignore AAoA mentioned elsewhere as some of them only include open accounts. 

 

If your Universal, Chase, and Discover are removed  tomorrow, then 354 combined months' of history are removed. 1,408 minus 354 equals 1,054. 1,054 divided by 11 accounts = 95 months. 95 divided by 12 months equals 7.9 years. So FICO will see a drop in AAoA by one year with a rebound one month later. Obviously they won't all drop at the exact same time so it won't work perfectly like that.

 

An AAoA change of 1 year may or may not impact your FICO if these are removed. As mentioned, they won't disappear at the same time so you may not see any change. The only other thing to consider is the age of your oldest accounts. It's not your oldest so no worries there. But if these are your oldest CCs, for example, then you could see a decrease.

 

 


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