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New Contributor
r92503lind
Posts: 73
Registered: ‎07-19-2007
0

Account Aging

I have a question on how the age of accounts is reviewed.
 
I have a relatively short credit history other than a few accounts. But when I do the score detail on the site it says I have a credit history of 2 years and this is hurting me. I have a few credit cards that I obtained at the end of last year and I would imagine this would hurt my average age.
 
My question is if I close these accounts would it help or does the age review closed accounts as well?
 
Also am I better off to request higher limits on my credit cards than to have 8 credit cards with low limits to increase the available revolving credit and increase my score? 
 
Thanks again!
Moderator Emeritus
fused
Posts: 16,374
Registered: ‎03-12-2007
0

Re: Account Aging



r92503lind wrote:
I have a question on how the age of accounts is reviewed.
 
I have a relatively short credit history other than a few accounts. But when I do the score detail on the site it says I have a credit history of 2 years and this is hurting me. I have a few credit cards that I obtained at the end of last year and I would imagine this would hurt my average age.
 
My question is if I close these accounts would it help or does the age review closed accounts as well?
 
Also am I better off to request higher limits on my credit cards than to have 8 credit cards with low limits to increase the available revolving credit and increase my score? 
 
Thanks again!


1.) Open and closed accounts are weighed and scored equally by FICO, this specifically applies to average age of account and credit length history.
 
2.) With your situation I would not recommend you close all of your CCs.
 
3.) IMHO, the number of cards you choose is a personal decision. What matters most is how well you manage them. Personally I prefer fewer cards with higher CLIs. Yes, CLIs is one of a couple good ways to lower your util%, so is paying down balances.:smileytongue:
Credit Profile -
FICO 08 Scores (09-16-2014): EQ 824, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1 (Amex 07-15-2014)

New Contributor
r92503lind
Posts: 73
Registered: ‎07-19-2007
0

Re: Account Aging

I was only thinking about doing this to 2 accounts I would not close ALL CC.
 
Does the FAKO calc method for EX and TU count closed and open accounts the same way as FICO?
Moderator Emeritus
fused
Posts: 16,374
Registered: ‎03-12-2007
0

Re: Account Aging



r92503lind wrote:
I was only thinking about doing this to 2 accounts I would not close ALL CC.
 
Does the FAKO calc method for EX and TU count closed and open accounts the same way as FICO?


Not sure with the FAKOs! If you close any cards just pay very close attention to your util%, ideally you want 1-9% reporting.
Credit Profile -
FICO 08 Scores (09-16-2014): EQ 824, EX 817, TU 822
All three scores were 850. Lost points for not having an open installment TL. So, BE WARNED!!!!!
Credit History: 26+ years ~ AAoA: 12 years ~ Util: 1% ~ Inqs: EX 1 (Amex 07-15-2014)

Senior Contributor
smallfry
Posts: 4,831
Registered: ‎04-20-2007
0

Re: Account Aging



r92503lind wrote:
I was only thinking about doing this to 2 accounts I would not close ALL CC.
Does the FAKO calc method for EX and TU count closed and open accounts the same way as FICO?



Who cares what TC thinks?

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