agp wrote:Okay but if I get my first Amex card, Card A in 2000, then get Amex Card B in 2008 (BEFORE I close A), then in 2009, I close A. Assume A and B are the only cards I ever had, in 2009 will my average age of Amex Card B be 9 years old or 1 year old?
To find your Average Age of Account (AAOA) write down all of your accounts (all of them, credit cards, mortgage, loans etc; open, closed, current and even charged off, they all count towards your AAOA). Next to the account, write down the total number of months that the accounts have been on your credit report (the date the account was opened according the bureau). Once you are done you would add all of the months together for a total.
So for your question, lets assume you have only two trade lines on your bureau, your closed Amex from 2000 and your open Amex from 2008 (but shows as opened 2000). For the sake of ease lets say both were opened 5/00. So both are 12 years old this month and there are 12 months in a year, so your two Amex cards (and for this example your total months period) would equal 288 months.
Next, divide 288 by how many trade lines you have: 288/2 = 144
Then divide 144 by 12 = 12. Your AAOA based on only having two trade lines both opened 5/00 would be 12. Obviously this is very simplistic and I can't imagine anybody above the age of 25 could only have two accounts. But this method is how to properly calculate your average age. Most people would incorrectly assume that they have two 12 year old accounts, divided by 2 equals 6. Nope. Not for age of credit.
So basically, even though AMEX A is closed, its open date still gets calculated in your AAOA. So for me, my 4/99 closed AMEX is still factored into my AAOA.
So give it a try with all of your accounts and see what you come up with.