06-12-2014 07:49 AM
When applying for Credit, how does the issuer determine the Average Age of Accounts? Do they go by FICO? or by the actual date opened?
For Example: FICO TU and FICO EQ have me at 8 months average age of accounts, but the FAKO's have me at 7 months. I realize FICO goes by the month opened, not the actual date to a tee. Thanks
06-12-2014 08:27 AM
It seems like there are three distinct items here -- (1) a credit report, (2) a score, and (3) a package of information reported by a CMS.
An AAoA calculation can be done by looking at a report.
What is actually reported for AAoA varies, for example based on whether closed accounts are included or not. There may also be differences in rounding.
An issuer can use any AAoA scheme they wish, that may or may not match what is used for FICO scoring.
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