Closed Accounts

[Anonymous]

I have seen people post about getting a small score boost when accounts age past the 24 month mark, I assume this is when they are no longer considered new account. 

My question is what happen to accounts that were closed prior to the 24 month mark? 

I have a few account that I plan on keep for a while but I really have no intention of keeping them open for 2 years. I basically only opened them for the sign up bonus and will close shortly before the annual fee is charged, AF was waived for the first year, unless they offer some kind of retention bonus for me to keep the account open or waive the AF.

[Anonymous]

---

@Anonymous wrote:

I have seen people post about getting a small score boost when accounts age past the 24 month mark, I assume this is when they are no longer considered new account. 

My question is what happen to accounts that were closed prior to the 24 month mark? 

I have a few account that I plan on keep for a while but I really have no intention of keeping them open for 2 years. I basically only opened them for the sign up bonus and will close shortly before the annual fee is charged, AF was waived for the first year, unless they offer some kind of retention bonus for me to keep the account open or waive the AF.

---

Nothing happens to them. They simply continue on your report, adding to AAoA until the CRA removes them, generally ten years after closing.

[Anonymous]

Hmm, I guess I was not specific enough with that question or didnt word it correctly.. When they cross the 24 month mark, even if closed, would they be considered established accounts or will there be any sort or penalty since they were never open accounts for 2 years. 

For example, an account that is opened in jan 2013 will be considered a new account until it reachs 24 months of age in jan 2015 at which point it would be considered an established account and could give you a small score boost due to this.

But if you open an account in jan 2013 and close it jan 2014 it would never have 24 months of active status so would this always be considered a new account or would the same rules apply as in example 1 and when jan 2015 rolls around you would still get a small boost from it crossing the 24 month even though the account was closed when it did age to 2 years.

[Anonymous]

---

@Anonymous wrote:

Hmm, I guess I was not specific enough with that question or didnt word it correctly.. When they cross the 24 month mark, even if closed, would they be considered established accounts or will there be any sort or penalty since they were never open accounts for 2 years. 

For example, an account that is opened in jan 2013 will be considered a new account until it reachs 24 months of age in jan 2015 at which point it would be considered an established account and could give you a small score boost due to this.

But if you open an account in jan 2013 and close it jan 2014 it would never have 24 months of active status so would this always be considered a new account or would the same rules apply as in example 1 and when jan 2015 rolls around you would still get a small boost from it crossing the 24 month even though the account was closed when it did age to 2 years.

---

Closed, positive accounts contribute to scores in two ways - They add to AAoA, and they contribute to the "number of good accounts vs negative accounts." Agewise they do not contribute anything else. Only open active accounts can 'graduate' to "mature" accounts.

[Anonymous]

Ahh. that is good to know. So other than new accounts dragging down the average age there is no real damage done to score for having multiple accounts open for a short period of time.

I do have some accounts that i will always keep open so I will have open accounts that will be "mature".