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Valued Member
Akr_Chels
Posts: 32
Registered: ‎04-19-2009
0

Closing an Credit Account?

My Credit Report show's 8 accounts in total although two accounts has been closed due to one card being lost and one being a card I never authorized to be open.

 

My longest credit account is 2 years and my average age is 11 months.

 

Would I improve my situation by closing one of my accounts?

Valued Contributor
wmarat
Posts: 1,754
Registered: ‎11-03-2007

Re: Closing an Credit Account?

No, closed account stays on your report 10 years and counted towards AAoA.
IN VINO VERITAS.
Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008

Re: Closing an Credit Account?

First, read this post on closing accounts:  Closing Credit Cards - by Fused

 

Next, use the FICO simulator / estimator to determine possible score outcomes:

http://ficoforums.myfico.com/fico/board/message?board.id=creditcard&thread.id=157618

 

 

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009

Re: Closing an Credit Account?


Akr_Chels wrote:

My Credit Report show's 8 accounts in total although two accounts has been closed due to one card being lost and one being a card I never authorized to be open.

 

My longest credit account is 2 years and my average age is 11 months.

 

Would I improve my situation by closing one of my accounts?


You might want to take a look at the sticky on Closing Accounts. There is no reason FICO-wise to close an open account. Closing an open account may actually have negative effects by changing your utilization (immediately) or your account aging (eventually) and such a change can never be in your favor. The only real reason to close an open account is if they are charging you fees that you just don't want or need to pay.

Valued Member
Akr_Chels
Posts: 32
Registered: ‎04-19-2009
0

Re: Closing an Credit Account?

I'll take a look at the links. I was thinking about closing an account that I have zero history on. I have never even activated this particular card and I don't even remember opening the card (but I told I would keep it when I originally called the issuer, I think there was some misunderstanding because I was asked over the phone if I wanted this card and I told them no and then I looked up and it was on my credit report) and I never even seen the card. But, I'll call the credit card issuer and check with them again about sending the card out to me.

 

I was thinking about closing it so my average credit history would go up since all of these credit cards are bringing my credit age down.

Senior Contributor
txjohn
Posts: 4,214
Registered: ‎09-12-2008

Re: Closing an Credit Account?

Closing an account will NOT remove it from your AAoA.

Credit Scoring 101 - Tuscani   *  Guide to Common Abbreviations
Frequently Requested Threads * FICO High Achievers  *  FICO Score Estimator


09/03/2009 TU: 777, EQ: 776 ($8 balance on an account dropped me out of 780's)
03/28/2009 TU: 814, EQ: 810, EX: 781 (02/12/2009)
05/18/2005 TU: 563, EQ: 580, EX: 549
Valued Member
Akr_Chels
Posts: 32
Registered: ‎04-19-2009
0

Re: Closing an Credit Account?

Thanks, John that helps make my decision since it doesn't remove it from my AAoA.

Senior Contributor
creditwherecreditisdue
Posts: 4,923
Registered: ‎04-19-2009
0

Re: Closing an Credit Account?

If it is an account in good standing it will remain on your CBR's and in the AAoA calculation for ten year after the DOLA. If the account doesn't have an AF why close it?
New Visitor
njccm3
Posts: 1
Registered: ‎04-21-2009
0

Re: Closing an Credit Account?

Thank you txjohn! I came to the forum to try to find this exact answer... thanks for your help!

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