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Close youngest card to raise score?

New Visitor

Close youngest card to raise score?

My newest card was opened 3mos ago - if I close it will my score go up?  Does a closed account factor into the average age of accounts?  I know that my utilization percentage will go up as well (currently 20percent, would change to 40), so I guess it'd be a balancing act.

2 REPLIES
Moderator Emeritus

Re: Close youngest card to raise score?


bchaney wrote:

My newest card was opened 3mos ago - if I close it will my score go up?  Does a closed account factor into the average age of accounts?  I know that my utilization percentage will go up as well (currently 20percent, would change to 40), so I guess it'd be a balancing act.


Welcome!

 

Closing it won't change your AAoA any because AAoA includes all OC accounts, whether opened or closed, good or bad. So closing it will not change your AAoA. Depending on your scoring profile and credit, I'd hazard a strong guess of a significant score drop if util doubles by closing a $0-balance CC.

 

OP, I don't know how much your AAoA changed by adding the TL, but you are probably experiencing the new account ding that happens when opening a new TL. That'll fade over the next few months and I'd expect to see some gradual increases. Also 20% is a tad high and I bet you could see some nice gains by getting it below 9%.

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New Visitor

Re: Close youngest card to raise score?

Interesting, thanks for the advice.  I currently have only 2 cards, I would need to open probably 2 more to get my utilization down below 9%.  Would the bump from lower utilization be enough to overcome the hit from opening 2 new cards?