Average Age of Account question

[Anonymous]

How does the AAoA get calculated?

I have the following 4 accounts open and the dates they were opened:

1 account opened Sept 2013

2 accounts opened Nov 2014

1 account opened April 2015

My AAoA shown on my credit file is 1yr 6mos, with an oldest acct of 2 yrs 5 mos

So how does this get calculated? I want to open a new CC but I am afraid it will lower my score since it will apparently lower my AAoA, so can someone please explain to me when woud be the best time to open a new acct and not have such a negative impact on my AAoA and score?

thank you all in advance

[Chris679]

It's the average length of time each account has been open. A new account will always lower it but building up a thicker file will insulate against this down the road. You have to weigh the pros and cons when thinking about applying for anything.

[Anonymous]

this does not answer my question...but thanks

[Chris679]

Ok add up the number of months each card has been open and divide the total by the number of cards

[FinStar]

---

@Anonymous wrote:

How does the AAoA get calculated?

I have the following 4 accounts open and the dates they were opened:

1 account opened Sept 2013 = 30 months

2 accounts opened Nov 2014 = 16 x 2 = 32 months

1 account opened April 2015 = 11 months

Total or aggreggate months for all 4 accounts = 73 (divide by the number of accounts) = 18.25~ or roughly 1 yr 6 mos

My AAoA shown on my credit file is 1yr 6mos, with an oldest acct of 2 yrs 5 mos

So how does this get calculated? Using March 2016 as a baseline, see above calcualtion for an approximate AAoA I want to open a new CC but I am afraid it will lower my score since it will apparently lower my AAoA, so can someone please explain to me when woud be the best time to open a new acct and not have such a negative impact on my AAoA and score?  Taking the above into account, you can experiment how a new account will play in lowering AAoA - typically a thin profile would get a bit of an impact (scores-wise) depending on all other factors considered.

thank you all in advance

---

[Anonymous]

---

@FinStar wrote:

---

@Anonymous wrote:

How does the AAoA get calculated?

I have the following 4 accounts open and the dates they were opened:

1 account opened Sept 2013 = 30 months

2 accounts opened Nov 2014 = 16 x 2 = 32 months

1 account opened April 2015 = 11 months

Total or aggreggate months for all 4 accounts = 73 (divide by the number of accounts) = 18.25~ or roughly 1 yr 6 mos

My AAoA shown on my credit file is 1yr 6mos, with an oldest acct of 2 yrs 5 mos

So how does this get calculated? Using March 2016 as a baseline, see above calcualtion for an approximate AAoA I want to open a new CC but I am afraid it will lower my score since it will apparently lower my AAoA, so can someone please explain to me when woud be the best time to open a new acct and not have such a negative impact on my AAoA and score?  Taking the above into account, you can experiment how a new account will play in lowering AAoA - typically a thin profile would get a bit of an impact (scores-wise) depending on all other factors considered.

thank you all in advance

---

---

I see so if I opened a new acct my AAoA would be 73 divided by 5 which would then lower to 14.6 or approx 1 yr 3 mos??

would that impact my score alot??

how about if I request a CLI from one of my current cards? that would then simply add total available credit and not impact my score correct? 

[FinStar]

---

@Anonymous wrote:

---

@FinStar wrote:

---

@Anonymous wrote:

How does the AAoA get calculated?

I have the following 4 accounts open and the dates they were opened:

1 account opened Sept 2013 = 30 months

2 accounts opened Nov 2014 = 16 x 2 = 32 months

1 account opened April 2015 = 11 months

Total or aggreggate months for all 4 accounts = 73 (divide by the number of accounts) = 18.25~ or roughly 1 yr 6 mos

My AAoA shown on my credit file is 1yr 6mos, with an oldest acct of 2 yrs 5 mos

So how does this get calculated? Using March 2016 as a baseline, see above calcualtion for an approximate AAoA I want to open a new CC but I am afraid it will lower my score since it will apparently lower my AAoA, so can someone please explain to me when woud be the best time to open a new acct and not have such a negative impact on my AAoA and score?  Taking the above into account, you can experiment how a new account will play in lowering AAoA - typically a thin profile would get a bit of an impact (scores-wise) depending on all other factors considered.

thank you all in advance

---

---

I see so if I opened a new acct my AAoA would be 73 divided by 5 which would then lower to 14.6 or approx 1 yr 3 mos??  Roughly speaking, yes since it would depend on when the account starts reporting.

would that impact my score alot??  Not sure, a lot of factors come into play such as utilization, mix of tradelines, inquiries.  Typically, a new account will have "some" impact, but the actual score outcome will vary for everyone - even for someone having a similar CR profile and any rebucketing factors.

how about if I request a CLI from one of my current cards? that would then simply add total available credit and not impact my score correct?  A CLI simply increases your total available credit - it also depends on the actual amount in proportion to your current utilization - per revolving tradeline and aggregate (after the CLI reflects on your CRs).  No method to predict your actual outcome since YEMV.  I'm sure it could help to some extent, but if your overall utilization is anywehre from 1%-5% it's doubtful you'd see a significant impact.

---

[Anonymous]

---

@FinStar wrote:

---

@Anonymous wrote:

---

@FinStar wrote:

---

@Anonymous wrote:

How does the AAoA get calculated?

I have the following 4 accounts open and the dates they were opened:

1 account opened Sept 2013 = 30 months

2 accounts opened Nov 2014 = 16 x 2 = 32 months

1 account opened April 2015 = 11 months

Total or aggreggate months for all 4 accounts = 73 (divide by the number of accounts) = 18.25~ or roughly 1 yr 6 mos

My AAoA shown on my credit file is 1yr 6mos, with an oldest acct of 2 yrs 5 mos

So how does this get calculated? Using March 2016 as a baseline, see above calcualtion for an approximate AAoA I want to open a new CC but I am afraid it will lower my score since it will apparently lower my AAoA, so can someone please explain to me when woud be the best time to open a new acct and not have such a negative impact on my AAoA and score?  Taking the above into account, you can experiment how a new account will play in lowering AAoA - typically a thin profile would get a bit of an impact (scores-wise) depending on all other factors considered.

thank you all in advance

---

---

I see so if I opened a new acct my AAoA would be 73 divided by 5 which would then lower to 14.6 or approx 1 yr 3 mos??  Roughly speaking, yes since it would depend on when the account starts reporting.

would that impact my score alot??  Not sure, a lot of factors come into play such as utilization, mix of tradelines, inquiries.  Typically, a new account will have "some" impact, but the actual score outcome will vary for everyone - even for someone having a similar CR profile and any rebucketing factors.

how about if I request a CLI from one of my current cards? that would then simply add total available credit and not impact my score correct?  A CLI simply increases your total available credit - it also depends on the actual amount in proportion to your current utilization - per revolving tradeline and aggregate (after the CLI reflects on your CRs).  No method to predict your actual outcome since YEMV.  I'm sure it could help to some extent, but if your overall utilization is anywehre from 1%-5% it's doubtful you'd see a significant impact.

---

---

as seen on my signature those are my variations of credit... and my utilization is at 10% total

[SouthJamaica]

---

@Anonymous wrote:

How does the AAoA get calculated?

I have the following 4 accounts open and the dates they were opened:

1 account opened Sept 2013

2 accounts opened Nov 2014

1 account opened April 2015

My AAoA shown on my credit file is 1yr 6mos, with an oldest acct of 2 yrs 5 mos

So how does this get calculated? I want to open a new CC but I am afraid it will lower my score since it will apparently lower my AAoA, so can someone please explain to me when woud be the best time to open a new acct and not have such a negative impact on my AAoA and score?

thank you all in advance

---

It's like any average, you add them up and then divide.

There will never be a time when adding a new account doesn't decrease your average age of accounts, and thus exert a downward push on your scores. The more accounts you already have, and the older they are, the less the effect will be.

[CreditDunce]

As long as you don't cross an integer boundary, it doesn't seem like the AAoA decrease will hurt your score much.  However, if your AAoA is reduced by 3 months, it will be an extra 3 months before you get the 2 year AAoA boost to your credit score.  There will be a penalty for the HP/INQ and for the new trade line.  A rule of thumb is it takes 6 months for your credit score to recover, but it is YMMV.

FICO doesn't care about your credit limits.  It only cares about your utilization percentage.  CLI's will not directly help your credit score.  However, they can make it easier to maintain a low utilization. Higher limits tend to smooth out fluctuations in your credit score.  VS 3.0 and the insurance risk models do give bonus points for higher credit limits.