How is the “Average Account Age” in the Equifax credit report calculated?
Jan, 2010 in Equifax Credit ReportI have a combination of Open, Closed, Revolving, consolidated and unconsolidated student loans, and a couple credit cards I have never used. I have averaged these in many different ways but have not yet arrived at the “Average Account Age” that is reported in the Equifax credit report. For those who haven’t purchased their report, an “average account age” is given, and the longer it is, the better for one’s credit score. Hopefully someone who has a simpler credit history can shed some light on how it is calculated. Thanks!
Have you calculated the age without your closed accounts? If you haven’t I would try that as the credit bureaus don’t count closed accounts in the average age of your credit file.
I believe it is oldest account (in month) plus newest account (in month) divided by 2.
Card 1: 24 month
Card 2 : 16 month
==> 24+16= 40 / 2 = 20 month (1 year 8 Month ) average account age.
I’m not sure but I suspect is the average of just your open accounts.