Confirming my FICO knowledge and Question

[sjt]

Hi All

I wanted to confirm what was told to me awhile ago regarding FICO scoring:

AAOA:

• I heard that closing a credit card will not effect your AAOA. A credit card that is reported closed will still factored in your AAOA as long as the credit card is being reported to a CRA.

Utilization:

• The only time closing a credit card can have a negative impact if the reduction of credit, from the closed credit card, will increase your utilization ratio if you carry a balance.
• Charge Cards (Amex, Diners) are considered open accounts and the reported balances are not factored in the Utilization ratio on newer scoring models, ir FICO 08.
• There is no difference between a unpaid or paid collection or charge off, however the balances on the unpaid collections/charge offs are factored in your utilization ratio.

Transferring/upgrading your credit card accounts:

• When doing a product change there are some financial institutions that require a new account. I was told to make sure they list the new account as a "transferred account."

Am I on track or am I off on these?

Also at what point do your scores get "rebucked?"

Thanks!

[guiness56]

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@sjt wrote:

Hi All

I wanted to confirm what was told to me awhile ago regarding FICO scoring:

AAOA:

• I heard that closing a credit card will not effect your AAOA. A credit card that is reported closed will still factored in your AAOA as long as the credit card is being reported to a CRA.  True

Utilization:

• The only time closing a credit card can have a negative impact if the reduction of credit, from the closed credit card, will increase your utilization ratio if you carry a balance. Only if the balance and the CL are reported are they included in utilization.  Once paid off, the CL will be removed from utilization also.
• Charge Cards (Amex, Diners) are considered open accounts and the reported balances are not factored in the Utilization ratio on newer scoring models, ir FICO 08.
• There is no difference between a unpaid or paid collection or charge off, however the balances on the unpaid collections/charge offs are factored in your utilization ratio.  Only on OC accounts.  CA accounts are not factored into utilization.  Unless they are reporting in your account section, which they should not be but sometimes do.  And yes, no difference between paid and unpaid.

Transferring/upgrading your credit card accounts:

• When doing a product change there are some financial institutions that require a new account. I was told to make sure they list the new account as a "transferred account."  Not sure of this one.  I thought some just upgrade your TL to the new product.

Am I on track or am I off on these?

Also at what point do your scores get "rebucked?"  Rebucketing can occur when their are changes in AAoA, collections being deleted, a negative aging etc.

Thanks!

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