Frequent Contributor
Posts: 382
Registered: ‎06-26-2012
Re: AAOA...dumb question I

AAOA stands for "average age of accounts"


So here's a scenario.


You have 3 credit cards, 1 auto loan, 1 mortgage all reporting on your report (either still active or at least just on your report)


Lets say as of this exact date this is the following ages.


CC1- 2 months old

CC2-2 months old

CC3- 2 months old

AL-3 years old (closed but still on report)

Mortgage 10 years old (closed but still on report)


So what you would do is just like any other average add them up and divide by number of accounts and that will show what your AAOA. It isn't based on the oldest other than the fact that the older an account gets the older your AAOA gets.


In this scenario your AAOA would be 2.7 years old. As soon as those closed accounts drop off (especially the mortgage) you'll see your AAOA drop unless you have some stuff age in the mean time to make up that 10 years.

Current: Eq- 624 Ex - 631 (lender pulled) TU - 661 (lender pulled)
Goal 700+ across all three