topic Re: Closed cards and AAOA was affected in Credit Cards

Closed cards and AAOA was affected

littlesister — Sun, 22 Apr 2012 16:27:48 GMT

Well I know everyone here says if you close accounts it will not affect your aaoa until they drop off in ten years, that's not right!

I just recently closed two crappy cards that I got years ago because of the fees and my aaoa dropped by almost a year. So it does affect your aaoa!

I dont really care, just wish I was prepared. I replaced the limits with cli so my util would stay the same and thankfully I only lost one point.

Re: Closed cards and AAOA was affected

Wolf3 — Sun, 22 Apr 2012 16:32:48 GMT

How do you Know?

Re: Closed cards and AAOA was affected

littlesister — Sun, 22 Apr 2012 16:42:41 GMT

Wolf3 wrote:
How do you Know?
I know because I check my credit reports almost daily and as of right now it is only affecting transunion. It said my aaoa has dropped due to two recently closed accounts.
They advise me to get a cli , which I already have, just waiting for it to report.

Re: Closed cards and AAOA was affected

jefftca925 — Sun, 22 Apr 2012 17:02:10 GMT

Was the score that dropped a FAKO score by chance? Companies that use these have slightly skewed criteria than FICO. I have a couple of closed accounts from several years ago that are still on my reports and are still being factored into my FICO AAoA score. Also, the impact of your AAoA is minimal compared to a derog or high utilization.

Re: Closed cards and AAOA was affected

Crashem — Sun, 22 Apr 2012 18:04:56 GMT

Are ou using credit karma? They show aaoa of open accounts. Luckily fico scoring is off of all accounts

Re: Closed cards and AAOA was affected

cloyd — Sun, 22 Apr 2012 18:07:50 GMT

Re: Closed cards and AAOA was affected

sqrt — Sun, 22 Apr 2012 19:41:34 GMT

Crashem wrote:
Are ou using credit karma? They show aaoa of open accounts. Luckily fico scoring is off of all accounts

Re: Closed cards and AAOA was affected

LS2982 — Sun, 22 Apr 2012 23:54:45 GMT

I shut down 4 accounts all within a month and dropped 5 points on EQ and EX and TU stayed the same. AAoA at 1 year.

Re: Closed cards and AAOA was affected

MarineVietVet — Mon, 23 Apr 2012 03:18:08 GMT

LS2982 wrote:
I shut down 4 accounts all within a month and dropped 5 points on EQ and EX and TU stayed the same. AAoA at 1 year.

It wasn't the act of closing them that caused the score drop. There was something else at play.

Re: Closed cards and AAOA was affected

mxp114 — Mon, 23 Apr 2012 06:25:49 GMT

I don't understand how closed accounts work and I did read the sticky.

Are closed accounts calculated based on the opening span or since opening date thru now? For example Open Date 4/22/92 but closed 4/23/93, does that factor 12 months of age into my AAoA or a decade? If a decade, why? If it's the avg age of open accounts, how can the time lapse between closure and now get factored? Just trying to understand it. Thanks.

Re: Closed cards and AAOA was affected

Smug — Mon, 23 Apr 2012 08:06:57 GMT

Closed 7 accounts under a year old, toy ones, no issues here.

Re: Closed cards and AAOA was affected

FrugalRican — Mon, 23 Apr 2012 13:32:25 GMT

All bets on CK being used or something similar.

She did say TU... and CK is ceremoniously linked to TU.

Re: Closed cards and AAOA was affected

searchingfor67 — Mon, 23 Apr 2012 13:44:33 GMT

I closed three rebuilder cards all within the past year, and I haven't experienced a score drop...

Re: Closed cards and AAOA was affected

llecs — Mon, 23 Apr 2012 14:00:09 GMT

MarineVietVet wrote:
LS2982 wrote:
I shut down 4 accounts all within a month and dropped 5 points on EQ and EX and TU stayed the same. AAoA at 1 year.
It wasn't the act of closing them that caused the score drop. There was something else at play.

Or util impact.

Re: Closed cards and AAOA was affected

llecs — Mon, 23 Apr 2012 14:05:46 GMT

mxp114 wrote:
I don't understand how closed accounts work and I did read the sticky.

Are closed accounts calculated based on the opening span or since opening date thru now? For example Open Date 4/22/92 but closed 4/23/93, does that factor 12 months of age into my AAoA or a decade? If a decade, why? If it's the avg age of open accounts, how can the time lapse between closure and now get factored? Just trying to understand it. Thanks.

AAoA is the average of all OC accounts, whether good or bad, opened or closed. The age of an OC account is calculated off the open date. Side tangent, FICO reads all accounts opened, per AAoA, based on the first of the month in which the CC was opened. So, if you opened one today, your CR will reflect an open date of 4/1 per AAoA calcs. So, if you have an account opened 4/2010 and closed 4/2012, the account is 2 years old (2 yrs 1 mo to be precise) and will continue to report on your CRs for roughly another 10 years before it falls off, adding to your AAoA and length of history. Why 10 yrs? I dunno. Maybe it's in the FCRA? I don't know, but I do know that creditors can delete earleir if they wanted to.

Re: Closed cards and AAOA was affected

FrugalRican — Mon, 23 Apr 2012 14:17:34 GMT

I thought OP's problem was the AAOA dropping, not the score.