Just curious...
I've seen several times that someone will ask which cards they should close. And, I often see forum members advise to keep the card open for one full year to get history before they close the card.
I know I had an Orchard Bank for about 5 months, then closed it - didn't care about the year of history. It felt GREAT to get rid of it!
So, why is this? Does this affect your score in some way, or do creditors see this and make decisions related to the short history? You still get the 10 years of history that comes with a closed account, so I guess I'm just confused. 
Thanks, you two.
That's pretty much what I figured, but thought maybe there was something I was missing since I see that advised so often.
Cheers!
My thoughts are that if I've paid an AF, then I might as well get a full year's worth of reporting out of it. But, that's just my personal take on it.
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It doesn't matter. Yes, you'll get the most out of it if you leave it open longer, but you're talking about a few extra months ten years from now. Ideally, you won't be in a position then where you'll need the age from this card. I suppose if you're taking the ultra conservative view, you could screw your credit up again, and then every last point would count again.
Now, if you're one that chases sign-up bonuses, it can be good to leave the accounts open longer. If you're ever having to recon a denial, y ou don't want the bank to see that you always sign up for cards and cancel them after the first month. You want them to believe that you could become a long term customer.
Starting Score: ~500 (12/01/2008)
Um tradeline seasoning is a well known fact of life in FICO models. Anything shorter than six month is strictly short-term, and apparently there's another uptick at the 1 year mark from everything I've heard or looked at albeit it's mostly anecdotal.
Time does heal pretty much everything, in 10 years it won't matter regardless; however, in the more immediate future, it might.
@tinuviel wrote:My thoughts are that if I've paid an AF, then I might as well get a full year's worth of reporting out of it. But, that's just my personal take on it.
I agree!!!
And specifically for rebuilder cards IMO its good to chuck after a year because of all the nasty fees associated with the cards.
