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Moderator Emeritus
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Registered: ‎12-31-2008
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AAofA - I thought I knew how this was calculated....can anyone clarify?

I've peeked around on the board and haven't found it yet, nor in the Understanding Your Fico Score booklet.  Is AA of A the average lifespan of all your OPEN accounts?  Or ALL accounts still showing up on your report.  Thanks for continuing to train my brain cell!
Just puttin' syrup on something, don't make it pancakes.
Valued Contributor
Posts: 1,072
Registered: ‎02-15-2009

Re: AAofA - I thought I knew how this was calculated....can anyone clarify?

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.

 

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Re: AAofA - I thought I knew how this was calculated....can anyone clarify?

Beautiful.  And the age, of course, is from opening date to closing date on each of those accounts?
Just puttin' syrup on something, don't make it pancakes.
Valued Contributor
Posts: 1,072
Registered: ‎02-15-2009

Re: AAofA - I thought I knew how this was calculated....can anyone clarify?

[ Edited ]

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.

Message Edited by nothingman02 on 04-09-2009 07:50 AM
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Re: AAofA - I thought I knew how this was calculated....can anyone clarify?

[ Edited ]

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.

Message Edited by utah2009 on 04-09-2009 08:52 AM
Message Edited by utah2009 on 04-09-2009 09:14 AM
Just puttin' syrup on something, don't make it pancakes.
Valued Contributor
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Re: AAofA - I thought I knew how this was calculated....can anyone clarify?

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.

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Posts: 4,470
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Re: AAofA - I thought I knew how this was calculated....can anyone clarify?

[ Edited ]

Thank you - absolutely invaluable to me!

 

Again, many thanks for sharing your brain cells.

 

Edited to delete new question.

Message Edited by utah2009 on 04-09-2009 09:26 AM
Just puttin' syrup on something, don't make it pancakes.
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Re: AAofA - I thought I knew how this was calculated....can anyone clarify?

Didn't quite get your question there I'm afraid.
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