AAoA question

[Jpmack29]

How much is your aaoa effected from adding new accounts? Is there a formula to figure it out, how much does it chip away from your history age? 2 months,3...? Just wondering. Thanks 

[Anonymous]

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@Jpmack29 wrote:

How much is your aaoa effected from adding new accounts? Is there a formula to figure it out, how much does it chip away from your history age? 2 months,3...? Just wondering. Thanks 

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To figure out what your new age would be just add all of your accounts age and then divide that number by the number of accounts. So if a new account was added with new history then add that to the total number of accounts, but keep the summation of the accounts age the same. It will affect your age more if you have less accounts. Regardless, though, aaoa is only worth 15% of your score. Plus, as the accounts grow, your aaoa will increase, thus slowly helping your fico score. 

[Anonymous]

It's simply an average.

Let's say, for example, that you have only had one account for the past decade.  You open three new accounts today and BAM, your AAoA went from 10 years to 2.5 years (10/4 = 5).

Let's say you've had 4 accounts for a decade and nothing else.  You open a new account today and your AAoA is cut to 8 years (40/5 = 8).

Let's say you've opened an account every two years for the past 10 years, and open an account today, making 6 total.  Your AAoA in this case is 5 years (10+8+6+4+2+0 = 30/6 = 5).  

[takeshi74]

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@Jpmack29 wrote:

How much is your aaoa effected from adding new accounts? Is there a formula to figure it out, how much does it chip away from your history age?

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It's fairly simple math and the formula is like any other average.  You add up the amounts and divide by the number of amounts.  Converting to months may make it easier.  If you're having trouble doing it manually there are online AAoA calculators and you can use solutions such as Excel and its date formulas.

Impact of adding a new account will vary depending on existing AAoA, number of accounts, etc.