AAoA Question

[miakayuuki]

Greetings All,

 

Well, I finally have two high limit cards, one for $10,000 with DCU and one for $22,000 with NavyFed and I am starting to think it is time to close one or two of my starter cards which still have fees. Here is the crux however, my AA0A is only around 3 years right now due to taking advantage of the recent student loan special conciliation deal that lowered the interest rates. So of course all my loans closed, and all new ones opened.

 

Having read through the forums, I found some conflicting information about when exactly an account stops accruing time towards AAOA. Some people say it stops when closed, some say it continues to accrue time until it is removed form your credit report.

 

Thus my question, lets say I close my $250 PNC Visa (Prior National City Visa) Secured Card. It has about 5 years of history going for it. Which of the following occurs in regards to it's inclusion in my AAOA?

 

A: It continues to count as 5 years and only 5 years for the next 7 years until it falls off my credit report.

 

B: It continues to age despite being closed and contributes in an ever increasing fashion for the next 7 years until it falls off.

 

C: The 27 national credit bureaus (I think that is the right count these days, so many new ones it is hard to keep track) decide to conspire to screw me and remove the account immediately from my report causing my scores and pride to drop.

 

Thanks for the help and clarification all, the assistance is appreciated.

 

 

[MaltIR]

Using some quick math, with my accounts as a guide, I'm going to have to say it is option A. But I could be completely wrong.

 

I've got several car loans that have long since been paid off as well as some that have only recently been paid off. The only things that are currently reporting on my reports are the CC's I've gotten this year. Its saying my AAOA is something like 5 years, but if go back and figure from the start till today I calculated that my AAOA would be closer to 7.5 years.

Edited September 14, 2013 by MaltIR

[mendelssohn]

It's B. It continues to age after it is closed until the day it falls off. Positive accounts stay on your reports up to 10 years, not 7.

Edited September 14, 2013 by mendelssohn

[MaltIR]

It's B. It continues to age after it is closed until the day it falls off. Positive accounts stay on your reports up to 10 years, not 7.

That makes more sense than A, I'm just wondering why my AAOA is so different then. Mine should be easily 2 years older than it is. Maybe I just did my math wrong, either way, thanks for the correction

[mariuszh]

 

It's B. It continues to age after it is closed until the day it falls off. Positive accounts stay on your reports up to 10 years, not 7.

That makes more sense than A, I'm just wondering why my AAOA is so different then. Mine should be easily 2 years older than it is. Maybe I just did my math wrong, either way, thanks for the correction

 

What AAOA are you comparing your calculation to?

 

Example: CreditKarma only counts open accounts into it's AAOA.

[MaltIR]

looking at CCMP, MPM, or CS they all list AAOA as 5 years and 9 months. When I manually average them out I get a bit over 7 years.

[cv91915]

One discussion about the two average age metrics: http://creditboards.com/forums/index.php?showtopic=516310.

[chugs102]

What student loan consolidation deal was this? Still available? Please PM if you don't want to discuss here.

[miakayuuki]

What student loan consolidation deal was this? Still available? Please PM if you don't want to discuss here.

 

There was a program a while ago called Special Direct Consolidation Loan which had the added benefit of reducing your interest rates a little. It was sadly very poorly advertised, and I only found out about it by chance. Here is an article that talked a little about the program

 

http://news.vin.com/VINNews.aspx?articleId=21866

 

This was the old page with info, though I can not get it to load now

 

https://studentloans.gov/myDirectLoan/specialLoanConsolidation.action

 

Sadly it is over now, but the result for me was all my loans were closed/paid and opened up as new individual loans under a single provider with each one receiving a .25% interest rate reduction.

 

Hope that answers your question.