OK need some help....To close accounts or not

[Anonymous]

Important note.....average age of accounts only applies to open accounts.  When I closed all my accounts except for my 3 oldest, my score went UP!

[OMW2_HighAcheiver]

.......I just...... 😧😩😞😒

[Anonymous]

never thought i would say this....... but i cant wait to call comeinity in the morning

[FinStar]

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@Anonymous wrote:

Important note.....average age of accounts only applies to open accounts.  When I closed all my accounts except for my 3 oldest, my score went UP!

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Sorry, that's incorrect - AAoA applies to both open AND closed accounts.   Closing accounts reduces available credit so it's important not to have a high utilization (or close any card with a balance); otherwise scores can suffer.

[Anonymous]

i was considering transfering the balance from some of the cards that i owe money on to the usaa card as they have 0% on balance transfers,  so for a few months the utilization will be high on that card ,    does that mean i should hold off on closing a few right away, and just close a couple each month.

[FinStar]

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@Anonymous wrote:

i was considering transfering the balance from some of the cards that i owe money on to the usaa card as they have 0% on balance transfers,  so for a few months the utilization will be high on that card ,    does that mean i should hold off on closing a few right away, and just close a couple each month.

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Just close a couple each month (more if you can) and try not to max the CL with the BT on USAA.  And,if your utilization is going to run a bit high on your USAA, try to make decent sized payments on the balance.  I'm assuming you're not applying for a mortgage anytime soon so your scores may take a bit of a dip but will recover over time.  Keep in mind that for scoring, FICO has no memory on utilization so you can potentially see some bumps in your scores as you pay your balances down.  Check your CRs frequently to see the progress since it takes a while for some cards to report the correct balances.

[Anonymous]

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@FinStar wrote:

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@Anonymous wrote:

Important note.....average age of accounts only applies to open accounts.  When I closed all my accounts except for my 3 oldest, my score went UP!

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Sorry, that's incorrect - AAoA applies to both open AND closed accounts.   Closing accounts reduces available credit so it's important not to have a high utilization (or close any card with a balance); otherwise scores can suffer.

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Not in my experience.  FICO, Credit Karma, and Credit Sesame all increased significantly by closing newer accounts.  Also Credit Karma specifically identifies average age of OPEN accounts as primary driver of credit scores. 

[Anonymous]

@Anonymous wrote:

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Not in my experience.  FICO, Credit Karma, and Credit Sesame all increased significantly by closing newer accounts.  Also Credit Karma specifically identifies average age of OPEN accounts as primary driver of credit scores. 

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Yes, VantageScore only takes the age of open accounts into consideration, but lenders don't use VantageScore.... FICO applies AAoA to every account on your file.

[FinStar]

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@Anonymous wrote:

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@FinStar wrote:

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@Anonymous wrote:

Important note.....average age of accounts only applies to open accounts.  When I closed all my accounts except for my 3 oldest, my score went UP!

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Sorry, that's incorrect - AAoA applies to both open AND closed accounts.   Closing accounts reduces available credit so it's important not to have a high utilization (or close any card with a balance); otherwise scores can suffer.

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Not in my experience.  FICO, Credit Karma, and Credit Sesame all increased significantly by closing newer accounts.  Also Credit Karma specifically identifies average age of OPEN accounts as primary driver of credit scores. 

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Credit Karma is whack when it comes to scoring algorithms since their scores are based primarily on open account history (their AAOA version).  Their scores are FAKO and used by some as educational barometers.  FICO algorithms don't work that way.  Similarly, Credit Sesame derives FAKO scores.   While it's possible your FICO scores may have increased with some account closures, keep in mind there are rebucketing factors as well.  But, for the sake of clarification, FICO counts closed accounts and open accounts in their algorithm for AAoA, which are the true, actual scores.

[Anonymous]

Not going to argue any further; do whatever works for you; I'm just letting the OP know what worked for me.  All scores, including FICO purchased directly fromm myfico increased significantly after closing newer accounts. I don't carry credit card balances so utilization wouldn't have been a factor.