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Amex PRG change to Amex Green or Gold

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Anonymous
Not applicable

Re: Amex PRG change to Amex Green or Gold


@jsucool76 wrote:
The account will continue to age for up to 10 years. Since it is a charge card and has no reported credit limit, you have no real downsides to closing.

So I should see no change in my credit score for the next 10 years if I close the account now?

 

I am assuming that the score will go down when the account disappears from my report in 10 years, however, all my other cards will have aged 10 years and maybe it won't be too bad. Does anyone know what it would look like in 10 years when the account comes off of my report?

Message 41 of 47
PointLager
Established Contributor

Re: Amex PRG change to Amex Green or Gold

So how does it work with closed accounts and ten years

Let's say I have one card acct now, aged ten years and I close it while applying for new card. The old account stays on for ten years.

So at five years later what kind of impact does the original card have:

10 yr old (frozen at age ten when closed but exists for ten years) + 5 y old new card = 7.5 average age.

Or

Does the closed card continue to age so at 5 years after close we end up with:

card 1 (closed): 15 yrs old
Card 2: 5 yrs old
= avg age of account is 10

Thanks
Message 42 of 47
PointLager
Established Contributor

Re: Amex PRG change to Amex Green or Gold

Pity about senior green not being available. I downgraded my PRG to senior green a year ago while keeping plat and adding EDP.

Now I may take platinum to the woodshed given the lack of love from Retentions. I would have downgraded it to senior if I could. I get over $35 in Amex offers per year for each account
Message 43 of 47
jsucool76
Super Contributor

Re: Amex PRG change to Amex Green or Gold


@PointLager wrote:
So how does it work with closed accounts and ten years

Let's say I have one card acct now, aged ten years and I close it while applying for new card. The old account stays on for ten years.

So at five years later what kind of impact does the original card have:

10 yr old (frozen at age ten when closed but exists for ten years) + 5 y old new card = 7.5 average age.

Or

Does the closed card continue to age so at 5 years after close we end up with:

card 1 (closed): 15 yrs old
Card 2: 5 yrs old
= avg age of account is 10

Thanks

You have one account ight now it is 5 years old lets say. So your AAoA is 5 years (since you have one account in this hypothetical situation). 

 

You open a new account, it is 0 years old, so your AAoA is 2.5 years. 

 

You close your original card. AAoA is still 2.5 years. 

 

In 10 years your other account falls off, but your new card is 10 years old. Provided you've applied for nothing else, your AAoA is now 10 years. 

 

At least that is my understanding of it, but I've been wrong before. Smiley Tongue

Message 44 of 47
Anonymous
Not applicable

Re: Amex PRG change to Amex Green or Gold


@jsucool76 wrote:

@PointLager wrote:
So how does it work with closed accounts and ten years

Let's say I have one card acct now, aged ten years and I close it while applying for new card. The old account stays on for ten years.

So at five years later what kind of impact does the original card have:

10 yr old (frozen at age ten when closed but exists for ten years) + 5 y old new card = 7.5 average age.

Or

Does the closed card continue to age so at 5 years after close we end up with:

card 1 (closed): 15 yrs old
Card 2: 5 yrs old
= avg age of account is 10

Thanks

You have one account ight now it is 5 years old lets say. So your AAoA is 5 years (since you have one account in this hypothetical situation). 

 

You open a new account, it is 0 years old, so your AAoA is 2.5 years. 

 

You close your original card. AAoA is still 2.5 years. 

 

In 10 years your other account falls off, but your new card is 10 years old. Provided you've applied for nothing else, your AAoA is now 10 years. 

 

At least that is my understanding of it, but I've been wrong before. Smiley Tongue


Correct.  People too often confuse the issue of closed vs open credit cards.  In Fico scoring, it matters not whether an account is open or closed in calculating AAoA.  Closed cards continue to age just the same as an open account.

Message 45 of 47
PointLager
Established Contributor

Re: Amex PRG change to Amex Green or Gold

So in the month before the closed act drops off you have aaoa 15y (10+ 19.99y) then the following month when the closed acct hits 20y (10 since closing) it drops off and that month your AAoA Drops to 10.

That's the Fico delta I'd like to know. Or if there's a sweet spot where The marginal aging doesn't make much of a difference anymore. (Eg 6, 10y etc)
Message 46 of 47
Anonymous
Not applicable

Re: Amex PRG change to Amex Green or Gold


@PointLager wrote:
So in the month before the closed act drops off you have aaoa 15y (10+ 19.99y) then the following month when the closed acct hits 20y (10 since closing) it drops off and that month your AAoA Drops to 10.

That's the Fico delta I'd like to know. Or if there's a sweet spot where The marginal aging doesn't make much of a difference anymore. (Eg 6, 10y etc)

Yes, I would be interested to know that as well.

 

I'm happy that closing my account at least won't affect my credit scores badly.

Message 47 of 47
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