AAoA Rebound Time

[DI]

My AAoA is now 2.5 years after the last newest tradeline posted.   How long will it take to get  to 3 years from a high of 4 years in August '09.

Message Edited by DI on 10-16-2009 08:22 AM

[Anonymous]

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@DI wrote:
My AAoA is now 2.5 years after the last newest tradeline posted.   How long will it take to get  to 3 years from a high of 4 years in August '09.

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If you are now at 2 y 6 m six months from now you will be at 3 y 0 m.

[DI]

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@Anonymous wrote:

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@DI wrote:
My AAoA is now 2.5 years after the last newest tradeline posted.   How long will it take to get  to 3 years from a high of 4 years in August '09.

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If you are now at 2 y 6 m six months from now you will be at 3 y 0 m.

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Ok, So, I gain a month each month.  That is strange...  I lost 2 months as each new tradeline posted.  How wrong of FICO formula!! It need to be changed.  

[smallfry]

Gotta brush up on your gozintas. Add up the total months and divide by the number of accounts. FICO is merely a disinterested bystander.

[Anonymous]

It's not wrong at all. AAoA is an average. When you add a new TL you add 0 to the average. When the accounts age you add one month per account to the average. The only reason you lost so little from your AAoA when you added all those accounts is because you have 30+ reporting TL's. It could have been far worse!

[DI]

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@Anonymous wrote:
It's not wrong at all. AAoA is an average. When you add a new TL you add 0 to the average. When the accounts age you add one month per account to the average. The only reason you lost so little from your AAoA when you added all those accounts is because you have 30+ reporting TL's. It could have been far worse!

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Wow!  Thanks CWCID!  I should feel fortunate then. I have a total of 34 accounts reporting. 

[Anonymous]

Very fortunate. It makes a huge difference when adding new TL's!

[haulingthescoreup]

This is something that people don't think about when looking at what happens when a closed account falls off in a decade.

If they have lots of accounts spread pretty evenly through their history (i.e., one or two opened every year), there's no big impact. But if they have, say, two very old closed accounts, a big gap in the middle, and a cluster of pretty new accounts, they'll probably see more of a hit on AAoA when the two old accounts fall off.

* looks nervously at the credit reports with the big donut hole in the middle of the history *

[Anonymous]

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haulingthescoreup wrote:
This is something that people don't think about when looking at what happens when a closed account falls off in a decade.

If they have lots of accounts spread pretty evenly through their history (i.e., one or two opened every year), there's no big impact. But if they have, say, two very old closed accounts, a big gap in the middle, and a cluster of pretty new accounts, they'll probably see more of a hit on AAoA when the two old accounts fall off.

* looks nervously at the credit reports with the big donut hole in the middle of the history *

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Me too! That's why I am oh so slowly paying off that 10+ year old closed account with a balance. I would like to remain in control of the reporting of that account for as long as possible. Having a bimodal distribution of credit account age is a real PITA. One of these days I will probably inoculate myself by adding an AU - specially if I can find one 20+ years old. If I can eventually get back in with Amex that will solve the whole problem.

[Anonymous]

So, I've heard stories of points dropping when you go from 3 to 2 years AAofA - what other guesstimates are there for "good" AAofA and "bad" AAofA cutoffs?

I hope my old closed accounts hold on 'til my new ones age up.  My donut hole is pretty darn big.