Have a question on closing a card

[pizza1]

---

@Anonymous wrote:

---

@pizza1 wrote:

---

@Anonymous wrote:

---

@pizza1 wrote:

(Mods, if this is in the wrong place, i apologize...wanted to get some exposure and  an answer before im carted away to the "other" place, lol...)

Ive done some research trying to find an aswer to my question, but have been seeing conflicting reports.  My question is this..........

I know that in "Ficos eyes", a new account stops being new at 2 yrs. But what if you close a CC before the 2 yrs mark with a $0 bal.  Does Fico still count that closed card as "new" until it becomes 2 yrs old, or does it take it out of the equation once its closed.  I know that a positive acct can stay on your reports for up to 10yrs. 

Thanks for any input

---

No, Just close them.

---

LOL...somehow Id knew you say that...If FICO still scores the new cloed acct regardless if its open or closed till 2 yrs, then whats the best way handle it? Keep it open now or close it.  It seems FICO will score it regardless 

---

Why so worried about score if you're not apping?

---

True!!  But now I have a new obsession, and thats my reports, and wanting to close a few cards that I carelessly apped for and got over the last few months that I clearly didnt need.  Now, its damage control.  just trying to find out as much info as I possibly can.  Ive already taken the hit inquiry wise adn AAOA, I would think if FICO scores closed accts into AAOA and AHOA, then I would gather to say that my new accts do factor for 2 yrs., whether closed or not.

[Anonymous]

---

@pizza1 wrote:

---

@Anonymous wrote:

---

@pizza1 wrote:

---

@Anonymous wrote:

---

@pizza1 wrote:

(Mods, if this is in the wrong place, i apologize...wanted to get some exposure and  an answer before im carted away to the "other" place, lol...)

Ive done some research trying to find an aswer to my question, but have been seeing conflicting reports.  My question is this..........

I know that in "Ficos eyes", a new account stops being new at 2 yrs. But what if you close a CC before the 2 yrs mark with a $0 bal.  Does Fico still count that closed card as "new" until it becomes 2 yrs old, or does it take it out of the equation once its closed.  I know that a positive acct can stay on your reports for up to 10yrs. 

Thanks for any input

---

No, Just close them.

---

LOL...somehow Id knew you say that...If FICO still scores the new cloed acct regardless if its open or closed till 2 yrs, then whats the best way handle it? Keep it open now or close it.  It seems FICO will score it regardless 

---

Why so worried about score if you're not apping?

---

True!!  But now I have a new obsession, and thats my reports, and wanting to close a few cards that I carelessly apped for and got over the last few months that I clearly didnt need.  Now, its damage control.  just trying to find out as much info as I possibly can.  Ive already taken the hit inquiry wise adn AAOA, I would think if FICO scores closed accts into AAOA and AHOA, then I would gather to say that my new accts do factor for 2 yrs., whether closed or not.

---

I think I will have to put an orange in your apple and get you set up with a checkbook and paper statements to get your mind off this. Lol.

[pizza1]

---

@coldnmn wrote:

---

@pizza1 wrote:

---

@coldnmn wrote:

My opinion would be if the account is open or closed it would be considered new as long as the inquiry is still listed on the credit report. That would be two years. But each bank may look at it differently. 

---

Colmn...Thank you!!  I sure miss seeing you around here, glad to know you stilll are!  Good to see you posting..  

On topic... That would make sense. Now the effect of the new acct may lesson over the 2 yr period, but is still considered new until 2 yrs in Fico eyes. Thats all Im really concerned with at this point.  So open or closed, if its less than 2 yrs, fico still scores that acct..is that what Im understanding? 

---

That's what I would think. Banks like Barclay are more sensitive the newer the inquiries and accounts are. That's why after 6 months they become less of a problem after a year not figured in credit score unless manually reviewed. Two years no longer considered. Just my 2 cents.

---

Thats what my gut tell me too...So at this point, I should probally just close them, since they are being scored as a new acct until 2 yrs anyway.

[MarineVietVet]

---

@pizza1 wrote:

---

@MarineVietVet wrote:

I keep reading opinions on this but I'm still looking for information from FICO on the subject and so far my search hasn't turned up anything.

---

Thats why I posted this MV... I wasnt coming up with anything, but then again, maybe I wasnt looking in the right spots in  my research. Believe me, I try to research as much as I can on certain topics before i come to the boards and ask.

---

I understand. And we need to remember that there could be a difference (and probably is) between how lenders look at this and how FICO scores it.

[Luscher]

Don't forget to transfer the credit limit to one of my cards bahaha

[coldnmn]

---

@pizza1 wrote:

---

@coldnmn wrote:

---

@pizza1 wrote:

---

@coldnmn wrote:

My opinion would be if the account is open or closed it would be considered new as long as the inquiry is still listed on the credit report. That would be two years. But each bank may look at it differently. 

---

Colmn...Thank you!!  I sure miss seeing you around here, glad to know you stilll are!  Good to see you posting..  

On topic... That would make sense. Now the effect of the new acct may lesson over the 2 yr period, but is still considered new until 2 yrs in Fico eyes. Thats all Im really concerned with at this point.  So open or closed, if its less than 2 yrs, fico still scores that acct..is that what Im understanding? 

---

That's what I would think. Banks like Barclay are more sensitive the newer the inquiries and accounts are. That's why after 6 months they become less of a problem after a year not figured in credit score unless manually reviewed. Two years no longer considered. Just my 2 cents.

---

Thats what my gut tell me too...So at this point, I should probally just close them, since they are being scored as a new acct until 2 yrs anyway.

---

Possibly closed accounts would make you look less risky when manually reviewed if applying for new credit. Being a new account is closed it wouldn't make you look like your desperate for credit. I'm calling It a night but if it was me I would close them if that's what you want to do. Good Luck!

[MarineVietVet]

Here is an interesting comment on the subject: http://www.foxbusiness.com/personal-finance/2012/03/02/how-fast-can-make-credit-score-comeback/.

Barry Paperno IMO is a very good source for information.

[MarineVietVet]

I asked Barry about this and here is his reply:

There's no 24 month rule having to do with closed and/or new accounts or even any true definition of a new account for that matter. As with all score calculations, there are various thresholds, whether dollars or months or numbers, where the number of points increases or decreases when crossed. For time triggered factors, one threshold could very well be 24 months, just at it could also be 12, 36, 48 months, etc. Not sure why 24 months has caught on in this way, but it might just be that it's a relatively manageable time period to track - and it sort of sounds logical. Other than that, you got me!

So feel free to tell them that any "24 month rule" regarding scoring is basically hogwash. That is, it may have been their experience and that of some others, but that doesn't mean there aren't more out there who see no difference whatsoever when their new account reaches 2 years, is closed before the 2-year mark, or whatever.     

That seems pretty definitive to me.