04-09-2009 06:45 AM
04-09-2009 07:17 AM
AAoA = Sum of Age of all a/c (open, close, revolving, installment, etc- (all a/cs except collections)) / No of accounts
Collection a/cs are not considered for AAoA calculations. Negative a/cs, adverse a/cs, chargeoffs etc listed by OCs are considered however.
04-09-2009 07:44 AM
04-09-2009 07:48 AM - edited 04-09-2009 07:50 AM
Yep. From opening date to the current date.
ETA: Not closing date but the current date. The age will count till the a/c falls off your report even if you have the a/c closed. You could open the a/c and close it in a month, its still gonna report, as long as its on your report, till the end of CRTP.
04-09-2009 07:50 AM - edited 04-09-2009 08:14 AM
OH! Wait a second. That's where I might be lost. From opening date to current date - no matter when the account closed? I'm feeling thoroughly confused.
So, why is it bad to close an account if it continues to age even if it's closed?
Thanks for helping me understand this. I truly appreciate it.
04-09-2009 08:06 AM
From opening date to current is how you count it. It does not matter if you have closed it or the OC did.
There are various reasons why closing an a/c could be bad. You would lose your UTL for one. Also, the a/c will fall off at the end of CRTP (Credit reporting time period) thus taking all its history with it. Whereas if you keep it open, 10, 20 years down the line, it would help you immensly .It will afford you the luxury to open more cards for instance.
04-09-2009 08:13 AM - edited 04-09-2009 08:26 AM
Thank you - absolutely invaluable to me!
Again, many thanks for sharing your brain cells.
Edited to delete new question.