Re: aaoa calculatio
12-09-2012 10:33 AM
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.