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Average Age of Accounts - Short Term Open & Closed Accounts?

Jazee
Contributor

Average Age of Accounts - Short Term Open & Closed Accounts?

Am I correct in understanding the Average Age of Accounts (AAoA) factor on the credit score is only calculated using OPEN accounts.

 

If that is correct, than if I get a personal loan, that will lower may AAoA.  But as soon as I pay it off and close it, the AAoA will go up?

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dragontears
Valued Contributor

Re: Average Age of Accounts - Short Term Open & Closed Accounts?


@Jazee wrote:

Am I correct in understanding the Average Age of Accounts (AAoA) factor on the credit score is only calculated using OPEN accounts.

 

If that is correct, than if I get a personal loan, that will lower may AAoA.  But as soon as I pay it off and close it, the AAoA will go up?


Nope, you are 100% wrong.

All accounts, open or closed factor into AAOA for all FICO models, if it is on your reports it counts 

Scores hover around 800
Haven't been AZEO in over a year
Rome was not built in a day, neither is a good credit profile
Message 2 of 3
Jazee
Contributor

Re: Average Age of Accounts - Short Term Open & Closed Accounts?

Thanks.  I did a search before posting and the thread I read, they said the opposite.  But I believe you are correct after digging deeper.

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