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Closing Aged Accounts.. Yes It Is Ok

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jhtrico1850
Regular Contributor

Re: Closing Aged Accounts.. Yes It Is Ok

So if I close it now (10 months) instead of 13 months, 5 years from now, there's no difference? Also, what if I closed it 2 years from now?

Message 51 of 81
haulingthescoreup
Moderator Emerita

Re: Closing Aged Accounts.. Yes It Is Ok

From whatever date you close it, add ten years. It should report until the ten years are up.

We have reliable info from members that Equifax drops accounts much earlier than that. They dumped one of mine that had been closed for about 4 1/2 years.

There is no law requiring that closed accounts report for 10 years. Smiley Mad It's just custom.
* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 52 of 81
jhtrico1850
Regular Contributor

Re: Closing Aged Accounts.. Yes It Is Ok

This is a great scoop btw. Why don't we know more about it?

 

http://www.nytimes.com/2009/05/17/magazine/17credit-t.html?_r=1

 

And this of course... Even though it's not technically the FICO score per se...

http://www.fico.com/en/Products/DMApps/Pages/FICO-Transaction-Scores.aspx

 

 

 

 

It would be grea if there was a site that was more transparent in the scoring method.

 

Message 53 of 81
Anonymous
Not applicable

Re: Closing Aged Accounts.. Yes It Is Ok

So, taking what's been said in this thread, it appears that it pays to reopen at least some accounts that are nearing the 10-years-since-closing mark, since typically they will add to the average length of credit history.  Or are reopened accounts handled differently by FICO scoring?

Message 54 of 81
llecs
Moderator Emeritus

Re: Closing Aged Accounts.. Yes It Is Ok


@Anonymous wrote:

So, taking what's been said in this thread, it appears that it pays to reopen at least some accounts that are nearing the 10-years-since-closing mark, since typically they will add to the average length of credit history.  Or are reopened accounts handled differently by FICO scoring?


Reopened accounts are treated as if they never closed. Now good luck reopening a 10 year old since-closed account. It would have to be the exact same account with the same account number that you had before. Creditors will usually tell you you'd have to reapply and that action would mean opening a new account, and not reopening the old.

Message 55 of 81
haulingthescoreup
Moderator Emerita

Re: Closing Aged Accounts.. Yes It Is Ok

 


@llecs wrote:

@Anonymous wrote:

So, taking what's been said in this thread, it appears that it pays to reopen at least some accounts that are nearing the 10-years-since-closing mark, since typically they will add to the average length of credit history.  Or are reopened accounts handled differently by FICO scoring?


Reopened accounts are treated as if they never closed. Now good luck reopening a 10 year old since-closed account. It would have to be the exact same account with the same account number that you had before. Creditors will usually tell you you'd have to reapply and that action would mean opening a new account, and not reopening the old.


 

+1

 

I have never, ever heard of a lender willing to do this.

 

The closest you can get is the backdating trick with AmEx, with a new card picking up the opening year of the oldest.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007
Message 56 of 81
BaddebtKing
New Contributor

Re: Closing Aged Accounts.. Yes It Is Ok

I have read that JC Penny's has re-opened some OLD closed accounts, but that seems to be the exception.


Starting Score: EQ 730 -- TU 763
Current Score: EQ 764 -- Walmart TU FICO 9/6/11 775
Goal Score: EQ 800 -- TU 800


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Message 57 of 81
MagicShot
Contributor

Re: Closing Aged Accounts.. Yes It Is Ok


@Tuscani wrote:


@Anonymous wrote:
OK, tell me if I've got this right:
 
Say I have a five-year old card.  I close it today.  Two years from today, does it count towards my history as a seven-year old card?  It's not frozen in time today when I close it as a five-year old? 


Yes, it counts towards your history as a seven year old card. And the 10 yr clock for its removal begins on the date you closed it, not when it was opened.

Is this Still true today as in meaning since the the Credit Card Law went into effect?

Message 58 of 81
MarineVietVet
Moderator Emeritus

Re: Closing Aged Accounts.. Yes It Is Ok


@MagicShot wrote:

@Tuscani wrote:



Yes, it counts towards your history as a seven year old card. And the 10 yr clock for its removal begins on the date you closed it, not when it was opened.

Is this Still true today as in meaning since the the Credit Card Law went into effect?


Yes all this still applies. The Credit Card Act did not change any of this. As far as I know.

 

 

 

From a BK years ago to:
EX - 9/09 pulled by lender 802, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 59 of 81
MagicShot
Contributor

Re: Closing Aged Accounts.. Yes It Is Ok

So an account I opened 4 years ago that was that was closed 3 years ago will still count as 4 years in my AAoA untill it falls off after 10 years?

Message 60 of 81
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