How do you calculate your AAoA?

[bichonmom]

I looked through the forum, but couldn't find this. Can someone please explain how to calculate my AAoA?

I just got 3 new cards in the last month or 2 (didn't have any previously). From Dec 09 through Dec 10, I had two secured loans with 2 different banks that were reported to the CRAs.They're both PIF.

After reading on the forum, it seems like it may have done more harm than good to get so many cards in such a short period of time. 2 are bankcards and 1 is a dept. store, if that matters.

Don't worry... I'm not planning on applying for any additional credit for probably a year, but I will be moving soon and may have inquiries due to the move.

Thank you!

[MarineVietVet]

---

@bichonmom wrote:

I looked through the forum, but couldn't find this. Can someone please explain how to calculate my AAoA?

I just got 3 new cards in the last month or 2 (didn't have any previously). From Dec 09 through Dec 10, I had two secured loans with 2 different banks that were reported to the CRAs.They're both PIF.

After reading on the forum, it seems like it may have done more harm than good to get so many cards in such a short period of time. 2 are bankcards and 1 is a dept. store, if that matters.

Don't worry... I'm not planning on applying for any additional credit for probably a year, but I will be moving soon and may have inquiries due to the move.

Thank you!

---

This is how I do it which means it's probably the looong version. 

Your AAoA is the sum of the ages of every account (except CA collections and public records) on your report, whether open or closed, calculated in months, divided by the number of accounts and then divided by 12. I use the division by 12 to make it easier to convert into years. This is measured from the time each account was opened until present.

You’ll need to figure the age of each account, open or closed, on each report. If all three reports are identical (very unlikely), you're in luck; otherwise, you'll need to run this for each report.

One of the mods (llecs? fused maybe?) recently posted a spreadsheet they use to keep up with this. I bet they'll see this and interject that knowledge.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[llecs]

This one?

http://ficoforums.myfico.com/t5/General-Credit-Topics/AAoA-Question/m-p/895024/highlight/true#M15061...

[MarineVietVet]

That's the one!!

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[bichonmom]

Thank yoiu for the description and the spreadsheet!

I'll work on making a spreadsheet... but just doing it in my head from Marinevet's calculation, I think it's 35 months / 5 accts = 7 / 12 months = .58 

Not very good. It was better before I got the 3 CCs.

How long does it take to get a good AAoA?

[RobertEG]

Great spreadsheet!

I generated one, and also added a column for "Date Closed," and for "Age since Closure."  That enables me to see a heads-up for closed accounts approaching 10 years from closure, signaling potential loss of that account from the AAoA calculation.

[MarineVietVet]

---

@bichonmom wrote:

Thank yoiu for the description and the spreadsheet!

I'll work on making a spreadsheet... but just doing it in my head from Marinevet's calculation, I think it's 35 months / 5 accts = 7 / 12 months = .58 

Not very good. It was better before I got the 3 CCs.

How long does it take to get a good AAoA?

---

Time is your best friend when it comes to this. Applying for new credit, although it's something most us have to do all our lives, is the enemy of AAoA. Each time we add a new account it will lower the AAoA but that doesn't always automatically hurt our score. It depends on how much it lowers the AAoA.

I'll try and explain. AAoA is rounded down for scoring so for example if your AAoA is 3.5 years for scoring purposes the AAoA is 3 years. If you apply for new credit as long as this new account doesn't drop the AAoA to less than 3 years then you're not hurt by it. Does any of this make sense?? If it does please explain it to me.  LOL

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

[llecs]

---

@RobertEG wrote:

I generated one, and also added a column for "Date Closed," and for "Age since Closure."  That enables me to see a heads-up for closed accounts approaching 10 years from closure, signaling potential loss of that account from the AAoA calculation.

---

That's a good idea. *ponders*

[bichonmom]

Marinevet, Thank you. Yes, that does make sense. It really is a waiting game! I hate the idea of starting all over from scratch at my age. If only I had known some of this information before, I could have made better decisions.

I'm glad I stumbled on this forum. Great info and so much help.

Thank you!

[MarineVietVet]

---

@bichonmom wrote:

Marinevet, Thank you. Yes, that does make sense. It really is a waiting game! I hate the idea of starting all over from scratch at my age. If only I had known some of this information before, I could have made better decisions.

I'm glad I stumbled on this forum. Great info and so much help.

Thank you!

---

You are very welcome.

Something else that can help your AAoA is being added to someone else's account as an Authorized User. This can help you IF the account is older than any of yours, IF the payment history is long and clean, IF the utilization is very low, and IF it will report to the CRA's. Not all cards will do this. You need to ask the company first. You will inherit the entire history of this account. One caveat however; if this account starts to go south your credit will be affected as well. Keep that in mind.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".