How is average age of accounts calculated

[Anonymous]

My Current AAoA is 7 years (Equifax that's what I pulled today)

I was trying to see what kind of damage would occur when my new accounts hit (2 more one is already there, dropped AAoA by 1 year) and also what would happen if I asked for a GW delete of some of my old ones with baddies.

I have 20 accounts all together there is

1899 months of history

divided by 20 = 95 

divided by 12 = 7.91   

so that is really close to what Equifax is reporting .. I assumed they must round down.

I tried factoring in the removal of a CO that has 64 months of history so

1899-64= 1835

divided by 19 = 96.5

divided by 12 = 8

I have always been told that removing an old CO would lower my AAoA but the way I did the math it raises it.

Does anyone know exactly how it is figured?

[Junejer]

I don't see a problem with how you calculated your AAoA. Your AAoA going down would assume that the item removed had a longer history than your average. Because the history was shorter than your average, consequently your average went up when it was removed.

I put each TL into excel in months and let it calculate it for me.

[Anonymous]

Good to know! I mean logically it seemed like the way I had figured it would be the only way to figure it but I just wanted to be sure there wasn't some backwards goofy way that they did it.

[Anonymous]

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@Anonymous wrote:

My Current AAoA is 7 years (Equifax that's what I pulled today)

I was trying to see what kind of damage would occur when my new accounts hit (2 more one is already there, dropped AAoA by 1 year) and also what would happen if I asked for a GW delete of some of my old ones with baddies.

I have 20 accounts all together there is

1899 months of history

divided by 20 = 95 

divided by 12 = 7.91   

so that is really close to what Equifax is reporting .. I assumed they must round down.

I tried factoring in the removal of a CO that has 64 months of history so

1899-64= 1835

divided by 19 = 96.5

divided by 12 = 8

I have always been told that removing an old CO would lower my AAoA but the way I did the math it raises it.

Does anyone know exactly how it is figured?

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The only problem will be to convince them to delete the accounts.

[Anonymous]

Indeed! I don't think they will and I wouldn't just come right out and say "Hey delete that account!" but I didn't want to take the risk of asking for GW on an ancient account and having it deleted if it were going to SERIOUSLY harm my history

[RobertEG]

The fact that the account you are thinking of attempted to get deleted is a CO adds two wrinkles unrelated to avg age, one good and one bad.  On the bad side, getting an OC to delete a chargeoff, for which they took a tax break, would substantially diminish chances that they would go for it.

On the good side, if deleted, it would also help your payment derog and public CO dings, which will continue to score agqainst you for 7 1/2 years from DOFD.