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Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

My brain hurts

Plz help me figure something out - my student loan is thru Directloan and they re-reported.  used to be just one, now it's three.  It seems I got some pointage for this.

 

The two new ones were backdated to 8/2009.

 

So how can adding accounts HELP AAoA, even though they backdated?

 

I don't understand the math of it.  I've been puzzling over it and puzzling my poor little brain to death.  Another poster over in the student loan section also got some points.

 

Thanks in advance.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Valued Contributor
ptr2593
Posts: 1,486
Registered: ‎08-14-2011

Re: My brain hurts


Booner72 wrote:

Plz help me figure something out - my student loan is thru Directloan and they re-reported.  used to be just one, now it's three.  It seems I got some pointage for this.

 

The two new ones were backdated to 8/2009.

 

So how can adding accounts HELP AAoA, even though they backdated?

 

I don't understand the math of it.  I've been puzzling over it and puzzling my poor little brain to death.  Another poster over in the student loan section also got some points.

 

Thanks in advance.


 

 

So you went from one 1999 account to three 1999 accounts, right?  Say you also have two 2005 accounts and two 2010 accounts.

 

With one 1999 account your AAOA would be 12+7+7+1+1 = 28/5 = 5.6*12 = 67.2 months

 

With three 1999 accounts, your AAOA would be 12+12+12+7+7+1+1= 52/7 = 7.4*12 = 89 months.

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Valued Contributor
Mustanglvr2006
Posts: 1,971
Registered: ‎02-06-2011

Re: My brain hurts


Booner72 wrote:

Plz help me figure something out - my student loan is thru Directloan and they re-reported.  used to be just one, now it's three.  It seems I got some pointage for this.

 

The two new ones were backdated to 8/2009.

 

So how can adding accounts HELP AAoA, even though they backdated?

 

I don't understand the math of it.  I've been puzzling over it and puzzling my poor little brain to death.  Another poster over in the student loan section also got some points.

 

Thanks in advance.


Hopefully I wont screw this up, but here's the way I calculate AAoA's......

 

Just using the two accounts you listed as opened 8/2009........

 

Each account is 28 months old X 2= 56 months between the two, now divide 56 by 2 (number of accounts) = 28 then divide that by 12= 2,3

 

So 2.3 is the AAoA's for just these two accounts. So if these were the only two TL's listed on your report your AAoA's would be 2.3 (but Fico rounds down AAoA's so in all actuality your AAoA's would be 2 yrs.

 

I just woke up and am still on my first cup of coffe so hopefully I didn't screw that up, if I did I apoligize.


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Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

Re: My brain hurts

Thanks guys - so it adds more total months to be divided by total accounts?  But in this case, I added both total  months AND total accounts, so that's why I just don't get it.

 

Just glad it helped not hurt.

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720
Valued Contributor
Mustanglvr2006
Posts: 1,971
Registered: ‎02-06-2011

Re: My brain hurts

[ Edited ]

Booner72 wrote:

Thanks guys - so it adds more total months to be divided by total accounts?  But in this case, I added both total  months AND total accounts, so that's why I just don't get it.

 

Just glad it helped not hurt.


The more TL's you have the less backdating will help, because you have to divide the total number of months of all TL's by the number of TL's you have, then divide that by 12 (for months)

 

So if you had say, 3 AmEx cards backdated to 2000 and had 15 total TL's on your report, you would not see as big of an AAoA's jump as you would if you only had 6 TL's.

 

But no matter what, backdating always helps, no matter how many TL's you have, it just helps more when you have less TL's.

 

I hope that makes any sense/


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Epic Contributor
haulingthescoreup
Posts: 28,115
Registered: ‎04-01-2007

Re: My brain hurts


Booner72 wrote:

Thanks guys - so it adds more total months to be divided by total accounts?  But in this case, I added both total  months AND total accounts, so that's why I just don't get it.

 

Just glad it helped not hurt.


The easy way to think of it is that if an added account is older than your current AAoA, it will increase your AAoA. If there are two additional accounts added, as in your case (you went from 1 SL to 3 SL's), it increases it even more.

 

If it's newer/ younger than your current AAoA, it will drop it.

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Senior Contributor
Booner72
Posts: 3,889
Registered: ‎05-24-2011

Re: My brain hurts

According to MYFICO my AAoA is 4 yrs 10 months.

 

The student loans opened August, 2009.

 

STARTING: 11/24/10 EQ-584 EXP-648 TU04-595
CLOSED FIRST HOME 8/19/11 EQ-630 EXP-691 TU04-653
CURRENT: EQ-701 EXP-??? TU08-720

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