How to manage accounts falling off a credit report in order to maximize FICO score?

[creditmeister]

Hello all, I've seen my score rise from 685 to 724, but in the most recent FICO report it dropped to 706.  I compared the previous FICO report to the current one and the only items which have changed are:  installment loan debt has decreased due to regularly scheduled payments, and the total number of accounts on the report dropped from 20 to 19.  The account which fell off the report appears to have been a clothing retailer charge card.

This alone was sufficient to drop my score by that much?  I'm frustrated.  How do others deal with accounts falling off the credit report, and their apparently negative impact on the FICO score?  Anyway to manage this, perhaps use them occasionally to ensure they continue to stay on the report? 

Also, what is the difference between an account listed as "date closed" but still being on the report, and not being on the report at all (as is the case with the retail charge card above)?

Thanks everyone.

[llecs]

It could happen if it was an account older than your AAoA. If you look on page 2 or 3, you may see a line item that says "age of your oldest account" and "average age" or something like that. Compare the before and after numbers. If your AAoA dropped, then your score could have dropped.

[creditmeister]

That makes sense.  The account was one of the oldest on my credit report, so my AAoA must have decreased.

That still leaves the question:  How do people handle this situation?  Is it preventable?

 and, what is the difference between an account disappearing from one's credit report, and an account still being listed but being "closed"?

Thanks so much. 

[llecs]

It is mostly preventable. It is recommended that you should never close a CC. Now there are situations like high-fee cards, change in the CC's T&C, etc. that may be unavoidable, but I'll cycle through each of my CCs and buy a cup of coffee once every 3 months just to keep them active and open. There's a great thread on Closing CC's stickied somewhere. Lists some of the pitfalls in closing a CC.

Once the card is closed, and attempts to reopen them with the CCC fail, then they will continue to report for 10 years from the date they are closed, if the CC is reporting well. Bad accounts only report for 7 yrs. If closed, it still factors into AAoA. But as you may have experienced, once it is removed, then AAoA will change.

[creditmeister]

Thank you very much for the help!