The information provided here stands to reason. If it was not true it would not be fair, ie....if someone has two revolving accounts and two installment loans all with a late payment or two but closes all out with PIF and closes at consumer discretion, than only the negative would count and thus completly wreck ones score. This would not be an accurate snap shot of ones ability to manage credit. Thus by counting closed accounts, it would fix this issue. I think that made since........
The opening post for this thread was a correct post about AAoA. Your score dropped when you paid off the mortgage because there is also a FICO scoring area for "types of credit" and you lost a major type of credit in your mix of accounts by closing the mortgage account. Nobody said that FICO seemed like a reasonable scoring method. It's not broken, this is just how FICO works. I think some of the reasons my score fluctuates are crazy too, but it is what it is and this what the lenders use.
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