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Closing a card

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squirrely2005
Contributor

Closing a card

I've read a lot about the subject but I'm still unsure about this. I have a card that's about 4 months old and am thinking about closing it. Does that help my AAoA or does it do the same as closing an old account and hurt me?

I'm just looking to get my AAoA up but is the only way to do that to just wait? Or would closing my youngest account help?

Message 1 of 6
5 REPLIES 5
Wolf3
Senior Contributor

Re: Closing a card


@squirrely2005 wrote:

I've read a lot about the subject but I'm still unsure about this. I have a card that's about 4 months old and am thinking about closing it. Does that help my AAoA or does it do the same as closing an old account and hurt me?

I'm just looking to get my AAoA up but is the only way to do that to just wait? Or would closing my youngest account help?


Closing it or keeping it open does not change your AAoA.   Waiting does.

 

If you can get put on as AU on account older than your AAoA, that can raise it.

Message 2 of 6
squirrely2005
Contributor

Re: Closing a card

Yeah. I figured. Thanks. I plan on asking my uncle to put me as an AU on one of his account when I see him in August.

Message 3 of 6
bichonmom
Senior Contributor

Re: Closing a card


@squirrely2005 wrote:

I've read a lot about the subject but I'm still unsure about this. I have a card that's about 4 months old and am thinking about closing it. Does that help my AAoA or does it do the same as closing an old account and hurt me?

I'm just looking to get my AAoA up but is the only way to do that to just wait? Or would closing my youngest account help?


Closing the account doesn't hurt your AAoA, but it can affect your score in other ways. It can raise your util, since the CL helps your overall util. And it is also one less open, active account that creditors will see when you're applying for credit. If you have enough other open accts., and your uitl is low, then it should be fine. But most CCs and banks like to see at least 2 to 3 open, active TLs with at least 1 year of history reporting.

 

EQ FICO 750 | TU FICO 761 (Walmart) | EX FAKO 767 | Goal: 800+

Edits, funky spacing and spelling due to my iPad not getting along with the forum editor!

Message 4 of 6
LS2982
Mega Contributor

Re: Closing a card


@Wolf3 wrote:

@squirrely2005 wrote:

I've read a lot about the subject but I'm still unsure about this. I have a card that's about 4 months old and am thinking about closing it. Does that help my AAoA or does it do the same as closing an old account and hurt me?

I'm just looking to get my AAoA up but is the only way to do that to just wait? Or would closing my youngest account help?


Closing it or keeping it open does not change your AAoA.   Waiting does.

 

If you can get put on as AU on account older than your AAoA, that can raise it.


+1

 

If you don't want to use it, SD it.




EQ FICO 548 3/3/16
Message 5 of 6
Gollum
Established Contributor

Re: Closing a card


@squirrely2005 wrote:

I've read a lot about the subject but I'm still unsure about this. I have a card that's about 4 months old and am thinking about closing it. Does that help my AAoA or does it do the same as closing an old account and hurt me?

I'm just looking to get my AAoA up but is the only way to do that to just wait? Or would closing my youngest account help?


Yes.

 

Closing the card will have no immediate impact on your Average Age of Accounts (AAoA).

A card that is closed in good standing with a zero balance remains on your credit report for ten years.

For those ten years, it affects your AAoA (positively) even though it is closed.  After ten years, it drops off the credit report, and it is no longer considered for your AAoA.

After it drops off your credit report, you lose its contribution to your AAoA.

 

If you are not sure what to do, I suggest not cancelling that credit card until you have done further research/reading.

 

There is a "sticky" at the top of this forum's homepage (Credit Cards) titled Closing Credit Cards in case you have not already read it.

Credit Scores: (FICO 8) 846 Experian March 2024, 844 TransUnion March 2024 | (FICO 9) 850 Equifax March 2024
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Message 6 of 6
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