Pleeeeeaaaassseee Help! AAofA!

Anonymous · ‎08-30-2009

Hello,

Please help me to determine how my AAofA will change since I just opened 3 new Tl's. Long story short, I filed BK 4/08, was discharged 8/08, and have started to rebuild my credit as of 10/08. I got my first unsecured CC via Orchard bank ($300 cl), in 9/08 I obtained a 9k student loan (deferred until 11-11 while in school), in 3/09 I obtained a 20k auto loan via my credit union, and after reading these forums, I applied and was approved for a Capital One CC ($500 cl $39af), Hooters ($300 cl/no fee) and a Kay Jeweler's account for $6500 in store, 5k limit). My AAofA on TU is 4 years, and is 3 years on EQ. How will this change my AAofA? I'm nervous since I lost 7 EQ points for applying for the Kay card. My scores post BK were 530ish and are now TU-659, EQ 665 (662 before kay Jeweler's inq). My utilization is 2% monthly down to 0% because I use the cards and pay before the statement date. No lates since my Bk. Thanks for any help.

Message Edited by Chula7 on 08-30-2009 11:23 AM

cobaltnv · ‎08-30-2009

Calculating your AAoA is relatively easy. Determine the number of months each of your accounts has been open for (zero for new accounts). For example your student loan opened in 9/08 is currently 11 months old (will be one year sept 1st). Sum the total number of months all accounts have been open. Divide this result by the number of accounts--this will give you your AAoA in months. Keep in mind that Fico rounds all AAoA down to whole number years. For example a AAoA of 13 months and 23 month would both be 1 year.

Hope that helps.

TU 810: EQ 813: EX 814 (9/16/09--Loan officer pull)

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jackg · ‎08-31-2009

Chula7

You are "Rebuilding your Credit" and while you're in that process you will have to , as the old saying goes, "have to break a few eggs..."In fact there is a "Rebuilding your Credit" forum here if I remember correctly. If I were you I would check it out.

Regarding your AAofA, it will suffer, but it has to because part of rebuilding is opening new credit, sorry. I filed in May 2006 and I'm just now beginning to feel better about my credit because I went to work on it as soon as I could

At this point you should be ignoring FICO scores and anything else that distracts you from your goal. Worrying about is pointless because you can't control it. You have to work on the negative info. in your reports and your scores will do their thing.

You absolutely on the right track, just stay focused on improving the content of your reports and adding new tradelines. I also suggest signing up for a credit monitoring service so you don't have to hunt for changes happening.

Good Luck

FICO scores on November 17, 2014 (prior to applying for and being approved my mortgage)

EX=738
EQ=735
TU=754

FICO scores on March 4, 2015 after being approved for mortgage and buying the home, the mortgage isn't yet reporting.
EX- 689 EQ- 739 TU- 739

Anonymous · ‎08-31-2009

Thanks a lot for the info! I was able to calculate the AAofA. It looks like my new accounts will change my EQ AAofA from 4 years to 3.48 (rounded off to 3 years) and my TU from 3 years to 2.95 (2 years?). I hope it won't cause too much damage. I have my fingers crossed. Either way, neither was extensively long to begin with.

Message Edited by Chula7 on 08-31-2009 06:31 PM

RobertEG · ‎08-31-2009

AAoA is not the only factor included in length of credit history. The date of your oldes account also factors in.

Together, they count for only 15% of your total FICO score. So it is not a huge impact.

Anonymous · ‎09-01-2009

Thank You Robert. It helps to know that. My oldest account on EQ is 9+ years old and my oldest on TU is 11+. I just hope I gain points for the new accounts. I guess either way, I will benefit in the long run. That is of course with low util and on time payments in full. Thanks again.