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AAOA and credit score

Valued Member

AAOA and credit score

Hello all,

I opened several CC accounts a year ago to get a CC with a high limit. Does it make sense to close the cards I don't need (the newest ones) to increase my AAOA?

Thank you.
Message 1 of 4
3 REPLIES
Established Contributor

Re: AAOA and credit score


cam2103 wrote:
Hello all,

I opened several CC accounts a year ago to get a CC with a high limit. Does it make sense to close the cards I don't need (the newest ones) to increase my AAOA?

Thank you.

No. 

 

For FICO scores, cards that are closed in good standing will continue contribute to the AAoA for 10 years after you close the account. (Then they fall off your report.)

 

It does make sense to close cards if you have cards you don't need or use, provided that closing such cards do not significantly lower your total available credit.

 

For more information regarding AAoA, total available credit (TCL), and utilization - stop on by the Understaning FICO Scoring forum. Smiley Happy 

 

 

Garden Club Member since 3/9/2017
Message 2 of 4
Senior Contributor

Re: AAOA and credit score

I agree with the post above.  Closing cards with your youngest ages will not raise your AAoA as they will still be factored into your AAoA even as closed accounts.

 

The more important question here, IMO, is why are you considering closing cards that you haven't even had for a year yet?  I guess I'm not understanding why you went through the trouble (inquiries, new accounts, etc) of getting them in the first place if you don't see any value in them and are considering getting rid of them?

Message 3 of 4
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Valued Member

Re: AAOA and credit score

Thank you!
Message 4 of 4