AAoA question

[Anonymous]

Ok, so...I'm trying to decide if it would be worth GW'ing an old auto loan to have 2 (of my 17) lates removed ahead of applying for a new car loan. I know my CU pulls the Auto Enhanced score, so I'm thinking that getting rid of these lates can only help me. They are old, one in 2002 and one in 2003, so I know they won't help my traditional FICO a lot, but if they're gone that will leave 3 totally clean auto loans (two closed, one open). If I try, and the entire TL is deleted, I'm trying to figure what kind of hit that would be to AAoA...so, someone tell me where I'm going wrong...

AAoA = 6 years, 5 months (77 months)

Total accounts = 9

Car loan in question - Opened 09/01, Closed 08/05 (47 months)

77 * 9 = 693 total months

693 - 47 = 646 total months (without auto loan in question)

646 / 8 = 80.75 months = 6 years, 8 months new AAoA

Is this right?  

[Junejer]

You count AAoA from the opening of the account, not the closing.

[Anonymous]

Thanks for the reply ByrdMan, but I'm not sure I understand what you're saying. I counted the amount of time the account was open, but are you saying I count the amount of time it was opened to present? 

[Junejer]

Yes, that is exactly what I am saying. All accounts, open and closed count in AAoA, from the time of opening to present, as long as it shows on your reports, it counts.

[Anonymous]

Thanks ByrdMan, that's the part I was missing. Based on that, it looks like that would drop my AAoA to 6 years, 3 months. The question now is...would losing a few months of AAoA be outweighed by losing a couple of 6 year old 30 day lates on a closed auto loan. Of course, I'm talking strictly in terms of the Auto Enhanced FICO score. 

[Junejer]

I think that you'd get more mileage out of having the baddies gone. The AAoA isn't too much different.

[Anonymous]

Assuming I did the calculations right (same as above, except counting that one acount from date opened until now), I think I'll go ahead and send 'em a GW. At best, I have 3 clean auto accounts. At worst, I have 2 and a couple months less AAoA. Or, I suppose, at worst they do nothing and I have what I have now...lol  Either way, I think it's worth going for. 

Thanks for all the input ByrdMan!!  

[Junejer]

You're welcome. GL