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Posts: 16,382
Registered: ‎03-12-2007
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Re: How CC Re-aging works?

db23 wrote:

fused wrote:

Rather accounts are open or closed, they are factored exactly same way when it comes down to average-age and credit length.

I'm a bit confused I guess. I was under the belief that once you close an account it stops aging. So if I were to have opened a new account in Jan-06 and closed it in Mar-06 then it's age would be 2 months as of today, not the 21 months that I would calculate by that statement.

No, aging begins on both closed and open accounts when they are opened. This account opened in 01/06 would have an age (including our current month Oct 07) of 21 months and will continue to factor in average-age of account scoring until Mar 2016.
Credit Profile:
FICO 9: EQ 833 ~ EX 828 ~ TU 824 (07-12-2017)
FICO 8: EQ 830 ~ EX 819 ~ TU 828 (07-12-2017)
FICO 8 Bankcard: EQ 851 ~ EX 849 ~ TU 851 (07-12-2017)
Credit History: 29 years ~ AAoA: 14 years
Total available revolving credit: 157K ~ Cumulative Util: 3% (1 CC reporting a balance)
Inqs: 1 EX (new)
14 Total Accounts on Reports: 9 open, 5 closed. 1 newly opened installment account
Moderator Emerita
Posts: 28,095
Registered: ‎04-01-2007
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Re: How CC Re-aging works?

fused wrote:No, aging begins on both closed and open accounts when they are opened. This account opened in 01/06 would have an age (including our current month Oct 07) of 21 months and will continue to factor in average-age of account scoring until Mar 2016.

Are we talking two clocks running here? One clock (the aging clock) starts the month and year that a card is opened, whether that card is now open or closed, and it records the age of the account, increasing every month, as long as the account stays on the history. So on the hypothetical opened-in-Jan-06, closed-in-mar-06, this clock started running in Jan 06, and it's still running.

The other clock (the how much longer it stays on your report clock) starts on cards that are closed (and on loans that are paid off??) on the month and year that they are closed, and that clock runs for 10 more years, at which point that CC/ loan falls off the history. On the short-lived account, this clock started running in March 06, and it will run until March 2016. Yes? No? (it's been a long Monday)
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