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From what I understand AAoA is calculated adding the total age of all your accounts (open and closed) and dividing them by the number of accounts.
Example:
1 account is at 2 years
1 account is at 1 year
Total age of accounts: 3 years
Oldest account age: 2 years
AAoA: 1.5 years
If you had opened 2 accounts together with the second card you would be at 1.33 AAoA (2 + 1 + 2 (/3)). If you open a new account now you would be at 1.0 AAoA (2 + 1 + 0 (/3)).
Opening several accounts around the same time help in grouping inquiries and having them age all together, both will help when recovering lost points down the road.
Plus you will have less of an effect should you choose to add a card later on (AAoA wise).
** If something above is wrong feel free to correct it.
You have 7 accounts (I will be counting December)
1) 1 year 6 months
2) 1 year 3 months
3) 1 year 2 months
4) 1 year
5) 11 months
6) 10 months
7) 8 months
Total age of accounts: 88 months or 7.3 years.
AAoA: 1.048 years
Oldest account: 1 year and 6 months
Which is pretty close to 1 year (Some may not take into account this month as it still hasn't passed).
@Croselx wrote:From what I understand AAoA is calculated adding the total age of all your accounts (open and closed) and dividing them by the number of accounts.
Example:
1 account is at 2 years
1 account is at 1 year
Total age of accounts: 3 years
Oldest account age: 2 years
AAoA: 1.5 years
If you had opened 2 accounts together with the second card you would be at 1.33 AAoA (2 + 1 + 2 (/3)). If you open a new account now you would be at 1.0 AAoA (2 + 1 + 0 (/3)).
Opening several accounts around the same time help in grouping inquiries and having them age all together, both will help when recovering lost points down the road.
Plus you will have less of an effect should you choose to add a card later on (AAoA wise).
** If something above is wrong feel free to correct it.
You have 7 accounts (I will be counting December)
1) 1 year 6 months
2) 1 year 3 months
3) 1 year 2 months
4) 1 year
5) 11 months
6) 10 months
7) 8 months
Total age of accounts: 88 months or 7.3 years.
AAoA: 1.048 years
Oldest account: 1 year and 6 months
Which is pretty close to 1 year (Some may not take into account this month as it still hasn't passed).
Just a couple corrections from above:
AAoA is calculated from all accounts on the credit report. If an account is closed, but not reporting anymore(after 10 years) then it will not be factored into the calculations.
Secondly, for FICO scoring purposes, AAoA is scored in increments of 12 months/1 year. For example, 1 year 3 months and 1 year 11 months will both be scored as 1 year.
@SwiftTone wrote:
@Croselx wrote:From what I understand AAoA is calculated adding the total age of all your accounts (open and closed) and dividing them by the number of accounts.
Example:
1 account is at 2 years
1 account is at 1 year
Total age of accounts: 3 years
Oldest account age: 2 years
AAoA: 1.5 years
If you had opened 2 accounts together with the second card you would be at 1.33 AAoA (2 + 1 + 2 (/3)). If you open a new account now you would be at 1.0 AAoA (2 + 1 + 0 (/3)).
Opening several accounts around the same time help in grouping inquiries and having them age all together, both will help when recovering lost points down the road.
Plus you will have less of an effect should you choose to add a card later on (AAoA wise).
** If something above is wrong feel free to correct it.
You have 7 accounts (I will be counting December)
1) 1 year 6 months
2) 1 year 3 months
3) 1 year 2 months
4) 1 year
5) 11 months
6) 10 months
7) 8 months
Total age of accounts: 88 months or 7.3 years.
AAoA: 1.048 years
Oldest account: 1 year and 6 months
Which is pretty close to 1 year (Some may not take into account this month as it still hasn't passed).
Just a couple corrections from above:
AAoA is calculated from all accounts on the credit report. If an account is closed, but not reporting anymore(after 10 years) then it will not be factored into the calculations.
Secondly, for FICO scoring purposes, AAoA is scored in increments of 12 months/1 year. For example, 1 year 3 months and 1 year 11 months will both be scored as 1 year.
Is this 100% verified?
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Just a couple corrections from above:
AAoA is calculated from all accounts on the credit report. If an account is closed, but not reporting anymore(after 10 years) then it will not be factored into the calculations.
Secondly, for FICO scoring purposes, AAoA is scored in increments of 12 months/1 year. For example, 1 year 3 months and 1 year 11 months will both be scored as 1 year.
Is this 100% verified?
I found this info through research earlier in the year when I was micromanaging my portfolio.
Also, when you pull a report from myFICO, AAoA is always shown in full years, never additional months.
@SwiftTone wrote:
Just a couple corrections from above:
AAoA is calculated from all accounts on the credit report. If an account is closed, but not reporting anymore(after 10 years) then it will not be factored into the calculations.
Secondly, for FICO scoring purposes, AAoA is scored in increments of 12 months/1 year. For example, 1 year 3 months and 1 year 11 months will both be scored as 1 year.
Is this 100% verified?
I found this info through research earlier in the year when I was micromanaging my portfolio.
Also, when you pull a report from myFICO, AAoA is always shown in full years, never additional months.
+1. FICO rounds down AAoA to the nearest whole number and cannot go below 1 year.
@GreatCreditFor2012 wrote:
....so how will closing them 3 Accounts March Affect my Aaoa?? Thanx for the help!!
It won't. AAoA includes ALL OC accounts, whether opened or closed, good or bad.