Reply
Valued Member
Poki
Posts: 81
Registered: ‎09-01-2013
0

AAoA - closing credit cards, do they stop aging?

[ Edited ]

Credit Karma has me confused.

 

I understand that its ok to close credit cards, but I'm just curious. Do the closed credit cards stop "ageing"?

Let me claify, if a card for example is 1 years old, and I close it. How will the age be calculated 5 years from now? 1 years old, or 6 years old?

 

I have some cards I want to chop:

First Premier MasterCard

First National Visa

HSBC/Capital One Discover

My 2nd Capital One MasterCard (they won't let me combine trade lines :smileysad: ).

 

Yes, they are all paid off.

"Neither a Borrower Nor a Lender Be"
Community Leader
Senior Contributor
myjourney
Posts: 26,548
Registered: ‎02-07-2013
0

Re: AAoA - closing credit cards, do they stop aging?


Poki wrote:

Credit Karma has me confused.

 

I understand that its ok to close credit cards, but I'm just curious. Do the closed credit cards stop "ageing"?

Let me claify, if a card for example is 1 years old, and I close it. How will the age be calculated 5 years from now? 1 years old, or 6 years old?

 

I have some cards I want to chop:

First Premier MasterCard

First National Visa

HSBC/Capital One Discover

My 2nd Capital One MasterCard (they won't let me combine trade lines :smileysad: ).

 

Yes, they are all paid off.


It will show as paid as agreed for 10 years after which time it will drop off your CR's 

"Intelligence plus character--that is the goal of true education"
Last 5 apps 6/6/13


Moderator
guiness56
Posts: 22,408
Registered: ‎01-17-2008
0

Re: AAoA - closing credit cards, do they stop aging?

For clarification, CK does not include closed accounts in their AAoA. 

 

FICO includes all OC accounts, open, closed, good or bad.

New Contributor
I_SUFFER_FROM_FICO_ENVY
Posts: 74
Registered: ‎04-03-2012
0

Re: AAoA - closing credit cards, do they stop aging?

Here's what I understand:

 

FICO considers a few things with respect to the AGE of your accounts.  In this section of their scoring, they consider the AAoA; your oldest OPEN tradeline (revolving); and, length of credit

 

The AAoA takes into account open AND closed accounts.  FICO tallies up all tradelines (since they were open) in MONTHS, then divides by 12.  Sadly, if your AAoA is 4 years and 11 months, FICO rounds DOWN and reports AAoA as 4 years.  And, FYI, if one account is 1 year and 11 months old, it is calculated as ONE year.  And, fyi, a BRAND SPANKING NEW acount, 1 month old is calculated as ONE year.  So, anywhere from ONE month to ONE year and 11 months is seen by FICO as only ONE YEAR.

 

But, to answer your specific question, AAoA includes closed AND open accounts.  Just keep in mind, in this section of scoring, your OLDEST/OPEN revolving account is considered (i.e., factored into the scoring), also.  That's why you need to close accounts with care.

 

Maybe an EXPERT here should elaborate on what I wrote.  I think I am correct, thouh. 

Community Leader
Valued Contributor
DaveSignal
Posts: 2,096
Registered: ‎07-29-2011
0

Re: AAoA - closing credit cards, do they stop aging?


Poki wrote:

Credit Karma has me confused.

 

I understand that its ok to close credit cards, but I'm just curious. Do the closed credit cards stop "ageing"?

Let me claify, if a card for example is 1 years old, and I close it. How will the age be calculated 5 years from now? 1 years old, or 6 years old?

 



To directly answer your question:

All account are calculated in months from the open date on your credit report until the current month.  They do not stop "ageing" because AAoA is always calculated this way, whether the accounts are open or closed.

EX:694 TU:744 EQ:709
Amex ED $19.5k - BoA Travel Rewards $15k - CSP $5k - SDFCU EMV $15k - NFCU goRewards $20k - Barclays Arrival $6.5k
Moderator
pizzadude
Posts: 9,674
Registered: ‎01-28-2010
0

Re: AAoA - closing credit cards, do they stop aging?

I recommend that you ignore CK scores, AAoA, and their scoring advice.
March2010 FICO® ~ 695 TU, 653 EQ, 697 EX
Moderator
Shogun
Posts: 12,952
Registered: ‎04-15-2011
0

Re: AAoA - closing credit cards, do they stop aging?


pizzadude wrote:
I recommend that you ignore CK scores, AAoA, and their scoring advice.

I'm going to give this one a big +1.  CK is good for monitoring new accounts, Inqs, etc.  But worthless when it comes to scores.  Their scoring method is way off par, plus you won't see a creditor denying or granting you credit due to your CK score.  :smileywink:


Starting Score: 504

July 2013 score: EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+

Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Moderator Emeritus
llecs
Posts: 32,881
Registered: ‎08-04-2007
0

Re: AAoA - closing credit cards, do they stop aging?


I_SUFFER_FROM_FICO_ENVY wrote:

Here's what I understand:

 

FICO considers a few things with respect to the AGE of your accounts.  In this section of their scoring, they consider the AAoA; your oldest OPEN tradeline (revolving); and, length of credit

 

The AAoA takes into account open AND closed accounts.  FICO tallies up all tradelines (since they were open) in MONTHS, then divides by 12.  Sadly, if your AAoA is 4 years and 11 months, FICO rounds DOWN and reports AAoA as 4 years.  And, FYI, if one account is 1 year and 11 months old, it is calculated as ONE year.  And, fyi, a BRAND SPANKING NEW acount, 1 month old is calculated as ONE year.  So, anywhere from ONE month to ONE year and 11 months is seen by FICO as only ONE YEAR.

 

But, to answer your specific question, AAoA includes closed AND open accounts.  Just keep in mind, in this section of scoring, your OLDEST/OPEN revolving account is considered (i.e., factored into the scoring), also.  That's why you need to close accounts with care.

 

Maybe an EXPERT here should elaborate on what I wrote.  I think I am correct, thouh. 


As DaveSignal indicated, the length of credit history includes your oldest account from the open date, regardless of whether or not it is opened or closed. If your oldest is closed, then that's your length of credit history. 

 

FICO also scores your oldest overall account, oldest revolving, and oldest installment. It doesn't matter if they are opened or closed.

 

Valued Member
Poki
Posts: 81
Registered: ‎09-01-2013
0

Re: AAoA - closing credit cards, do they stop aging?

thnks

 

Never said anything about CK's listed score :smileytongue:

 

I already have the follow up letters typed out, just need to call First Premier and First National Visa this Monday. I will keep the Discover and Capt1 for now, since they don't charge an annual fee.

"Neither a Borrower Nor a Lender Be"

myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+