Let me see if I understand AAoA

[Red1Blue]

Let me see if I understand AAoA. For example

Account  Date         Age

Target  12/1/1999 -  10 years old

JC P    11/1/2003 -   6 years old

Amex   8/1/2007  -    2 years old

Now AAoA becomes (10+6+2 ) /3 = 6 years

Let us say two years passes from now new AAoA should be

(12+8+4) / 3 = 8 Years.

Is this correct. Each account would age 1 year as 1 year passes by?

[haulingthescoreup]

Right. Although you'll be more accurate if you run it by MM/YY. The scoring is the same for AAoA of 4Y 1M vs 4Y 11M, but the implication for what might be coming soon for a score change is pretty good to be aware of. (Hope that makes sense.)

To try to untangle myself, your score will be the same for an AAoA of four years plus a month or five years minus a month.

Timothy always used to say to never app so much or so soon that your AAoA would drop by a full year. I didn't get this until I saw the damage on my own scores. So it's handy to know how far into a year you are, so to speak.

[cobaltnv]

Hauling, as usual, is correct. I find it easier to think about AAoA in months. For the example you provided;

Account  Date         Age (as of 8/1/09)

Target  12/1/1999 -  116 months (9 years 8 months) 

JC P    11/1/2003 -   69 months (6 years 9 months)

Amex   8/1/2007  -    24 months (2 years)

Now AAoA becomes (116+69+24 )/3 = 70 months = 5.8 years (5 years 10 months)

In 2 months the AAoA would be exactly 6 years. As long as no other accoutns are added the age will increase by 1 month each passing month. 

[haulingthescoreup]

Much better to figure by months only, instead of years + months! Thanks for posting that.

The YY/MM is horribly reminiscent of New Math, which I endured in third grade. Anyone else remember Base 12? *shudders * I don't care how the Babylonians counted, and base 12 might well be why their culture went extinct.

Tom Lehrer - New Math (base 8)

For all you young'uns out there, Tom Lehrer (still alive) was a Harvard mathematics lecturer, among many other things.

He did great political and social commentary when I was a kid. Unfortunately, most of his routines can't be posted here due to TOS, hint hint, but this one squeaks through.

[creditwherecreditisdue]

Hey! I might just be a babylonian ya know!

Just be glad you weren't British predecimalisation (1971), when the pound was divided in 20 shillings and each shilling into 12 pence, making 240 pence to the pound!

[Red1Blue]

Is there any calculator out there if we put in start mm/yy and end mm/yy will give number of months in that range? Manually trying to figure out for 65 accounts could take couple of weeks for me to compute.

[creditwherecreditisdue]

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@Red1Blue wrote:
Is there any calculator out there if we put in start mm/yy and end mm/yy will give number of months in that range? Manually trying to figure out for 65 accounts could take couple of weeks for me to compute.

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You could do it in Excel pretty easily. You are still going to have to enter the 65 accounts once.

[cobaltnv]

Concorduser,

   I put all my accounts in excel.

In one column I put the date in as "=DATE(2003,5,1)"

In the next column I put in "=DATEDIF(B14,$B$2,"M")" 

Here B14 is the column with the date the account was opened. $B$2 is the current date which is my spreadsheet has been put in cell B2. The datedif formula compares the two dates the M designation provides the output in months.

I do this for all my accounts, sum the total number of months and divide by the number of accounts. It is a bit tricky to set up  but once done it is great. I have a separate sheet for each CRA (**bleep** EQ).

I also have a cell which provides my oldest account-it searches row D (the output row for my age of accounts (in months) "=LARGE(D1450,1)"

Let me know if you have any questions. I wish there was a way to post such things on the boards here. 

Cheers! 

[Red1Blue]

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@cobaltnv wrote:

Let me know if you have any questions. I wish there was a way to post such things on the boards here. 

Cheers! 

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Hi Cobaltnv, I tried the formula. It works fine. Thank you very much. Now I have to figure out how to enter 65 accounts into the spreadsheet.

[creditwherecreditisdue]

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@cobaltnv wrote:

Concorduser,

   I put all my accounts in excel.

In one column I put the date in as "=DATE(2003,5,1)"

In the next column I put in "=DATEDIF(B14,$B$2,"M")" 

Here B14 is the column with the date the account was opened. $B$2 is the current date which is my spreadsheet has been put in cell B2. The datedif formula compares the two dates the M designation provides the output in months.

I do this for all my accounts, sum the total number of months and divide by the number of accounts. It is a bit tricky to set up  but once done it is great. I have a separate sheet for each CRA (**bleep** EQ).

I also have a cell which provides my oldest account-it searches row D (the output row for my age of accounts (in months) "=LARGE(D1450,1)"

Let me know if you have any questions. I wish there was a way to post such things on the boards here. 

Cheers! 

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I have this pretty much working also. Questions:

1) The oldest account is the oldest reporting TL, open or closed, right?, and

2) AAoA includes open and closed accounts? I can only get it to come out right if I exclude the one account I have which is reporting closed. Also, this value is truncated to a whole number, right? (No months.)

I also have a UTIL calc and that is working correctly. I am working this out initially using an EQ Score Power report from here.