Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
aaoa calculation

so i did the math and even with my added new card my aaoa takes almost no hit! which is crazy. am i doing something wrong? 

i should be adding all accounts correct? i have no closed accounts. so lets see. im just copying and pasting from excel.

 

 

6,5,6,5,27,25,12,6,6,4 +1 month for new card and installment loan included think it counts since sep even though it was opened aug 30th. or in longer format 


5 Citizens
4 Citizens
1 Citizens
5 Freedom
4 Zync
26 Best Buy
24 Macy's
11 Kohls
5 American Eagle
5 Walmart
4 Toyota

(number is by months ive had the account counting from the first day of account)

 

so my aaoa goes from 9.8month to 9 months and then to 10 months next month? how does that even make sense. 

so if this is correct i just made the best desicon ever anyways, as only time will heal this. 

 

esentially i got an inq free 5k limit card and almost no aaoa hit. 

how is this possible. 

will be pulling my reports for sure in jan. 

 

Current: Discover Fico 701 10/14 Walmart Fico 689 9/14

Inquiries (24 Months): EQ 3 TU 0 EX 0 | Most Recent: 09/26/2014


2014 Goals:
Lower Utility
47%(OUCH!!)
Freedom Signature

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Member
oogy
Posts: 17
Registered: ‎11-23-2012
Re: aaoa calculation

It is because you have so many accounts with an already relatively low aaoa.  I didn't redo the math to check you, but that sounds about right.   If you've got 10 cards and you add one new one, the average is going to drop by about 10% (actually less than 10%) Which is basically what you're seeing here.  10% isn't all that much when the aaoa is already under 10 months - but if it was 10 years, you'd lose a year rather than a month. 

 

(Though losing 1 year off of 10 still leaves you with a 9 year aaoa, and you're better off than if you only had 4 accounts and lost 2 years by adding a new one...)

EX: 683 (Nov 12)
EQ: 703 (Nov 12)
TU: ???
2013 Goals:
725+ by Summer and 750+ by Year end
Established Contributor
Cdnewmanpac
Posts: 766
Registered: ‎01-16-2012
Re: aaoa calculation

Although I get 8.5 months, it doesn't really matter. This is one of the reasons people advocate app sprees. the people worrying about the impact of new cards on AAoA atho typically those with a long AAoA and few accounts. I have 11student loans, all about 10 years old and all reporting twice (servicer changed), so don't see big changes either

In wallet: Ink Plus 10k, AMEX TE 25k. In bag: CSP 16k, USAA WMC 15k, Hyatt 13k, United MPE 12k, AMEX HHonors 3k. In SD: Cap 1 QS 5k, Discover IT 7k. FICO 08 says my EQ is now 844, was 510 in 2010.
Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
Re: aaoa calculation
Well then looks like ill be just waiting for my second Amex app when I hit a year which is just after march (still get a years worth pf backdating)when 5 of my stupid inquiries age over a year.
Current: Discover Fico 701 10/14 Walmart Fico 689 9/14

Inquiries (24 Months): EQ 3 TU 0 EX 0 | Most Recent: 09/26/2014


2014 Goals:
Lower Utility
47%(OUCH!!)
Freedom Signature

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
Re: aaoa calculation

Per FICO scoring know that AAoA is always rounded down to the nearest whole number though it'll never go below one year. So, your AAoA is 1 year now. I didn't look at your math either, but if you have 10 months, your AAoA will change from 1 year to two years in 14 months provided nothing is added or removed. Be sure to include closed accounts too if not already factored in.

Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
Re: aaoa calculation

llecs wrote:

Per FICO scoring know that AAoA is always rounded down to the nearest whole number though it'll never go below one year. So, your AAoA is 1 year now. I didn't look at your math either, but if you have 10 months, your AAoA will change from 1 year to two years in 14 months provided nothing is added or removed. Be sure to include closed accounts too if not already factored in.


hmm so to all creditors and fico its going to be 1 year until march of 14 awesome. 

might as well ask chase for the cli now then instead of august =)

Current: Discover Fico 701 10/14 Walmart Fico 689 9/14

Inquiries (24 Months): EQ 3 TU 0 EX 0 | Most Recent: 09/26/2014


2014 Goals:
Lower Utility
47%(OUCH!!)
Freedom Signature

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
Re: aaoa calculation

It's always a YMMV on creditors. They each have their own standards when it comes to most recent credit, AAoA, length of history, etc.

Valued Contributor
bs6054
Posts: 1,673
Registered: ‎11-11-2012
Re: aaoa calculation

oogy wrote:

It is because you have so many accounts with an already relatively low aaoa.  I didn't redo the math to check you, but that sounds about right.   If you've got 10 cards and you add one new one, the average is going to drop by about 10% (actually less than 10%) Which is basically what you're seeing here.  10% isn't all that much when the aaoa is already under 10 months - but if it was 10 years, you'd lose a year rather than a month. 

 

(Though losing 1 year off of 10 still leaves you with a 9 year aaoa, and you're better off than if you only had 4 accounts and lost 2 years by adding a new one...)


Right, and of course the more accounts you have, the smaller the impact.  SO my CR shows around 40 open and closed accounts, so even with a new 20 year backdate from AMEX, the increase in AAOA isn't that dramatic.