so how do we work out the closed accounts?
so an account with a 2/08 age on it translates to 13 months because it is 3/09 now, correct? Or do I need to find out the actual DAY?
Hello. Sorry to revive an old forum here but I had a question about the topic.
The general consensus among veterans here tends to be that a TL has its age calculated from the date of opening through to todays date REGARDLESS OF WHEN YOU CLOSED THE ACCOUNT. That sounds like good news to me, since it means it doesnt really matter if I close my travel hacking credit cards a month after I get the reward. Yes, I know then that means the max they can age to is 10 years, plus however long i had them open, and yes I know all about credit utilization, thats not in question here.
My question is, is there any official statement/terms/conditions that state this is the way TL age is calculated (namely from date of opening to todays date VERSUS date of opening to date of closing)? The myFICO summary on age limit simply points to the forums but what people say here is not officially sanctioned. Is there some officially sanctioned literature that states this as the case? Not saying I dont believe you guys, but its hard to believe what you hear about credit now adays since everybody seems to have their own idea of what hurts your credit and what doesnt (and there is even disagreement within this thread itself)!
Nothing in this forum is sanctioned.
The opinions given are just that based on experiences.
If things were sanctioned you would know how to dicipher how things are scored and I doubt we will ever really know.
So you're saying its intentionally ambigous and therefore theres no official documentation at this level of detail (namely detailing how age of a TL is calculated)?
Hey guys, I have a question, If I had opened a new CC account My Average age is about three yrs & change, my oldest account opened 7 yrs ago,my Ex:698. Now, should I expect a score increase because of the 7k TL? "My credit to debt ratio" has increased, or will it Decrease because My age is going to be shorten?Unfortunately, there's not enough information to answer your question. The short answer is that the new account will hurt your average age, but will help your utilization. The effect on your score will depend on which effect is greater.To know how much it will hurt your average age we would need to know how many accounts you have as well as the age of each individual account. Just knowing your current average age doesn't help.To know how much it will help your utilization, we'd have to know your current balances and CLs. Just knowing the fact that the new CL is $7K doesn't help here, either.
Message Edited by cheddar on 03-23-2008 09:10 PM
In my experience, the new TL will win out in the short-term and lower your FICO (the exact drop is complex and impossible to predict).
However as the account ages, the lower util will eventually win out (the increased CL's also help). So increasing your FICO score by increasing your available credit with a new TL is something of a longer term proposition - say the better part of a year to make a significant improvement. This also assumes that you won't be using that increased limit. If you use it, all bets are off.
A more immediate improvement in your FICO would be achieved by paying down your CC's to less than 10% util. Also, if you can obtain credit line increases on existing accounts without a hard pull inquiry that will improve your score right away.