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Average age of accounts AAOA

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haulingthescoreup
Moderator Emerita

Re: Average age of accounts AAOA


@Anonymous wrote:

So in 4 months my AAOA should be back to 5 years? Or do I have to wait until it hits one year? I will also post what if any point hit I take when it reports next month.

 

 

-TBC


If your new AAoA is 4.8 years, you'll be back at 5 in 0.2 years. Realistically speaking, that means 3 months.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 11 of 13
pizzadude
Credit Mentor

Re: Average age of accounts AAOA


@MarineVietVet wrote:

   I agree with this. Each individual account is counted month to month but AAoA itself can never be younger than 1 year. Does that make sense?

 

I recently posted about this. Someone had asked if it's possible to have an AAoA of zero and I found out that the brains behind the formulas were careful so that AAoA is always at least one year. So theoretically you could have one new account just one month old but your AAoA would be one year.

 


 


Ok, I think I got it ~ of course I haven't had coffee so who knows....

 

Each account's actual age in months ( even those with less than one year like 0 years 2 months ) is totaled up to calculate the total age.    Then divided by the number of accounts.    And the result is rounded down to the nearest whole number year, but will not show less than 1 year.

 

Is that right ??

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Message 12 of 13
MarineVietVet
Moderator Emeritus

Re: Average age of accounts AAOA


@pizzadude wrote:


Ok, I think I got it ~ of course I haven't had coffee so who knows....

 

Each account's actual age in months ( even those with less than one year like 0 years 2 months ) is totaled up to calculate the total age.    Then divided by the number of accounts.    And the result is rounded down to the nearest whole number year, but will not show less than 1 year.

 

Is that right ??


Yes. This is how I calculate AAoA. Your AAoA is the sum of the ages of every account (except CA collections and public records) on your report, whether open or closed, calculated in months, divided by the number of accounts and then divided by 12. I use the division by 12 to make it easier to convert into years. This is measured from the time each account was opened until present.

You’ll need to figure the age of each account, open or closed, on each report. If all three reports are identical (very unlikely), you're in luck; otherwise, you'll need to run this for each report.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".




Message 13 of 13
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