Lessons learned in retrospect

American Express forum. Talk about AmEx credit cards like Blue, Gold, Platinum, Centurion, and more.
16 posts
CC Deville
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Postby CC Deville » Sat May 26, 2012 1:53 pm

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.


agp
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Postby agp » Sun May 27, 2012 11:10 am

I do know how to calculate AAoA, but what I'm asking is that if I close my FIRST AMEX card after I get my SECOND AMEX card, is the second card still considered to be opened on the year the first card opened? Not really sure how else I can word it...

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

Crashem
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Postby Crashem » Sun May 27, 2012 11:43 am

agp wrote:I do know how to calculate AAoA, but what I'm asking is that if I close my FIRST AMEX card after I get my SECOND AMEX card, is the second card still considered to be opened on the year the first card opened? Not really sure how else I can word it...


Yes Amex reports all cards as opened in your member date and the month you opened it. So if you got one today it would be 5/2000. Of course ymmv but if there is problem you can complain to Amex to fix
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k

CC Deville
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Joined: Thu Aug 04, 2011 7:07 pm
Location: Phoenix

Postby CC Deville » Sun May 27, 2012 5:02 pm

agp wrote:I do know how to calculate AAoA, but what I'm asking is that if I close my FIRST AMEX card after I get my SECOND AMEX card, is the second card still considered to be opened on the year the first card opened? Not really sure how else I can word it...


Ok. Yes, the second card is considered opened in 2000 as well. This will never change until the cards fall off the bureaus. The open year of 2000 will always be the open year no matter what.

agp
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Postby agp » Sun May 27, 2012 7:53 pm

My last post hijacking this thread - does backdating happen automatically or do you have to request it?

Main Card: Amex Platinum
For gas: Penfed Platinum Cash Rewards
For travel & dining: Chase Sapphire Preferred

Crashem
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Postby Crashem » Mon May 28, 2012 12:10 am

Should happen automatically. But sometimes you need to fight for it so keep proof. Having online I'd with right member date showing is easiest way to guarantee no problems.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k



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