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AAOA...dumb question I

Established Contributor

AAOA...dumb question I

Ok....I am fairly new to this so my questions is probably dumb but....when yall talk about aaoa's is that just for credit cards or everything? All of my credit cards are within 2 months old but I still have a home loan that was paid perfectly from 1995-2005 (that's when the house sold) and a perfectly paid car loan that was paid off around that time as well. So is my aaoa from two months ago because of the open cc accounts or from 1995 when I bought the house even though it's sold??

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Message 1 of 4
Valued Contributor

Re: AAOA...dumb question I

I am fairly new to this site also. From what I read on here, they are two separate thing. One is your general loan account such as student loan, house, car. Another is your TL account such as credit cards.


I have student loans from 2005, but my AAoA is only 4 years (one of my oldest CC is Best Buy MC).


I think I am wrong on this one. Maybe someone will know the answer.

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12/19/2013, $100k+ Available Credit. Total Util: 0-1%
Message 2 of 4
Frequent Contributor

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)
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Message 3 of 4
Valued Contributor

Re: AAOA...dumb question I

+1 add to the previous post

You add up everything device by number of account .

Then devide by 12 ( 12 month a year).....Final it's your  AAOA. Example


Cc1: open 11/2011 (11 month till Oct 2012) 

Cc2: open 10/2010 (24 month)

Card loan: open 1/2008 paid off 1/2012 (57month) drop off from your report on 1/2022.

so add (11+24+57) = 92 : 3 = 30.6666666

30.666666 : 12 = 2.55555555 (AAOA)


Also keep in mind positive account stay on your report on the last day of your closing day. Let said you had a loan on 2005 paid off in 2010 .....the account will drop from your account on 2020.......

Hope it help

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