Average of accounts

[Logical]

I just got my second annual free set of CRs. This message is about the Equifax credit report. My oldest account is a student loan (still paying) with a start date of 7/1993. Next is a bank LOC starting 6/1994. That's it until I got my first CC in 11/2006. In March 2007 I got 3 more and between 11/06 and 11/07 I got 20 cards all together. Two (P66 & Shell) still do not report.

Now, Equifax says the average age of my accounts is 2.5 years (2 years 6 months). I calculate 2.1 years. The report has one closed account, an auto loan opened in 08/1997. The report does not say, but it was paid off 07/1998. Plug that in the spreadsheet - walla - 2.5 years. That account which was open for only one year last millenium is counted as a 10.6 year long account by Equifax!!!

[BallBounces]

 yeah but ....

When it drops off (this year we presume) your avergae age will go down again a little.  No bigee, just the way it seems to work.  

Edited to add this is a nice thread on the subject:  http://ficoforums.myfico.com/fico/board/message?board.id=ficoscoring&thread.id=4402

Message Edited by VistaV on 03-11-2008 03:29 PM

[Logical]

Thanks for the thread posting. I had read it sometime ago, but will look through it again. Don't tell Tuscani, but I was somewhat skeptical about it, but now I have absolute evidence it is true.

I just noticed that it does list the last day of activity to be 07/1998, so it might drop off in 4 months. All the TLs will be a third of a year older by then which will counter the drop if it happens. It is interesting, though, to see substantiation of the aging of closed TL.

[Anonymous]

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Logical wrote:

Thanks for the thread posting. I had read it sometime ago, but will look through it again. Don't tell Tuscani, but I was somewhat skeptical about it, but now I have absolute evidence it is true.

I just noticed that it does list the last day of activity to be 07/1998, so it might drop off in 4 months. All the TLs will be a third of a year older by then which will counter the drop if it happens. It is interesting, though, to see substantiation of the aging of closed TL.

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Most anything Tuscani posts can be taken to the bank!