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Established Member
Posts: 10
Registered: ‎05-21-2007
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Re: Closing New Accounts

So what I gather from this is that closing a new account has no benefit to your average age. If so, is it right to say that closing a card, per se, will never increase your FICO score?
Regular Contributor
Posts: 252
Registered: ‎03-16-2007
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Re: Closing New Accounts

Closing an account will never increase your FICO score.

However, if the account is costing you money, then do what makes financial sense.

For example, it makes financial sense to pay off an auto loan or a mortgage early if you can.
Moderator Emeritus
Posts: 16,373
Registered: ‎03-12-2007
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Re: Closing New Accounts



Conc wrote:
So what I gather from this is that closing a new account has no benefit to your average age. If so, is it right to say that closing a card, per se, will never increase your FICO score?


No, a closed new account will continue to age for up to 10 years on your CR. Closed and opened accounts are weighed equally too.
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, 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

Established Member
Posts: 10
Registered: ‎05-21-2007
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Re: Closing New Accounts



fused111 wrote:


Conc wrote:
So what I gather from this is that closing a new account has no benefit to your average age. If so, is it right to say that closing a card, per se, will never increase your FICO score?


No, a closed new account will continue to age for up to 10 years on your CR. Closed and opened accounts are weighed equally too.


I think you misunderstood what I said. I said closing (the action) a new account has no benefit to your average age, thus never increasing your FICO. On the other hand, you're saying that a closed account (the noun) will age and factor into your average age, which is essentially the reason why my statement is true.
Super Contributor
Posts: 8,172
Registered: ‎03-25-2007
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Re: Closing New Accounts

A closed account stays their, but it does not get any older.  FICO will look for when you first got revolving credit, and the average time accounts were open accounts.  My oldest credit card was closed years ago, but it still used by FICO as the date I first got a credit card
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Established Member
Posts: 10
Registered: ‎05-21-2007
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Re: Closing New Accounts



MidnightVoice wrote:
A closed account stays their, but it does not get any older.  FICO will look for when you first got revolving credit, and the average time accounts were open accounts.  My oldest credit card was closed years ago, but it still used by FICO as the date I first got a credit card


So does a closed acount age or not? I've heard it said both ways in this thread.
 
For example, if I close an account after having it for a year, what will its age be a year after that, as factored into my average age? 1 year or 2 years?
Super Contributor
Posts: 8,172
Registered: ‎03-25-2007
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Re: Closing New Accounts

As far as I know, a 5 year old account, once closed, will be 5 years old for ever.  It should stay on the CR for another 10 years, always being 5 years old, then it should drop off and be a zero
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid
Moderator Emeritus
Posts: 16,373
Registered: ‎03-12-2007
0

Re: Closing New Accounts



MidnightVoice wrote:
As far as I know, a 5 year old account, once closed, will be 5 years old for ever.  It should stay on the CR for another 10 years, always being 5 years old, then it should drop off and be a zero


I have closed Amex CC TLs (AU ones but it doesn't matter) on some of my CRs and they do age. In fact my fico EQ and TU says I have a credit card history that is 28 years old beacuse of these. They were opened in 1979 and closed in 2001. 
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, 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

Moderator Emeritus
Posts: 16,373
Registered: ‎03-12-2007
0

Re: Closing New Accounts

I know it seems odd that FICO rewards me and others for this but I'm not complaining!:smileytongue:
Credit Profile -
FICO 08 Scores (11-08-2014): EQ 818, 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

Super Contributor
Posts: 8,172
Registered: ‎03-25-2007
0

Re: Closing New Accounts



fused111 wrote:


MidnightVoice wrote:
As far as I know, a 5 year old account, once closed, will be 5 years old for ever.  It should stay on the CR for another 10 years, always being 5 years old, then it should drop off and be a zero


I have closed Amex CC TLs (AU ones but it doesn't matter) on some of my CRs and they do age. In fact my fico EQ and TU says I have a credit card history that is 28 years old beacuse of these. They were opened in 1979 and closed in 2001. 


Credit history is not the same as average age of accounts.  In my case, it is average age that causes problems (esp EX, which has one 10 year old CL missing).  If they did age, I would be in clover!
 
I actually had a thread on this a while ago, and the consensus seemed to be they didn't get older once closed.  And the average ages quoted on my reports from this place tend to agree with this.
The slide from grace is really more like gliding
And I've found the trick is not to stop the sliding
But to find a graceful way of staying slid

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