How do we computer Average Age or Accounts?

[Red1Blue]

How do we compute the Average age of your accounts. My Fico Report says 4 years. How do we determine this. Do start from the date when the account is opend and compute months to date and then divide the sum of all accounts by number of accounts? I am not sure how do we come up with this number. Any ideas how to figure this out?

[Anonymous]

it's funny- I was discussing this with a few of the other mods-

Seems myFICO determines AVG age by AVG of open dates minus todays date.

This is really easy in MS Excel-

I don't think this is right- using the way I calculate the avg age would be a lot different and have a much different results.

Example: Of course In my example the math works the same-

Open This month Months Years
CC1 Nov-01 Dec-07 73.2 6.1
CC2 Jun-07 Dec-07 6.2 0.5
Mort1 Apr-04 Dec-07 44.2 3.7

AVG Jul-04 41.2 3.4

[Red1Blue]

Thanks Timothy. I am assuming all the accounts reporting on the CR would be the same, even if they are open account or closed account. Right?  How did you compute in excel? Is there any formula I can use? Can you send me a PM how you used the excel to compute this. Thanks

[Anonymous]

Send me a PM reminder-
I can send you a template.

[Red1Blue]

Couple of new accounts showed on my CR and my average age dropped from 4 years to 3 years and status changed from established credit to not enough credit history. I guess I have to few few more months for the new accounts to age and let the average account age to increase. My scores came down from 691 to 686 to 680. I guess that must be due to the new accounts showing and reducing the average age of the accounts.