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How will closing old accounts effect my score?

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Anonymous
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How will closing old accounts effect my score?

Hello,
I have several accounts that are no longer used and have been paid off for some time.  One of the accounts has been open for 14 years, but the store (Parisian) is no longer open.  Should I close these accounts, and if so, will my score be adversely effected?  My score is currently 793, and I'd like to get up over 800. 
 
Thanks for any input.
Message 1 of 6
5 REPLIES 5
marty56
Super Contributor

Re: How will closing old accounts effect my score?

I dont think you should close old accounts since it changes your credit history length and may lower your amount of available credit which could lower your score.  It may fall off ypur report eventually but leave it be for now.
1/25/2021: FICO 850 EQ 848 TU 847 EX
Message 2 of 6
Anonymous
Not applicable

Re: How will closing old accounts effect my score?

I agree with marty. If they are inactive and have 0 balance they only help the average age of your cc's, which is one component of FICO scoring.
Message 3 of 6
haulingthescoreup
Moderator Emerita

Re: How will closing old accounts effect my score?

There's an instinct to tidy up reports, but this account isn't hurting you and might well be helping you. If you do close it, it should report for 10 more years, but with Parisian being closed (aren't they Belk now?), it might in fact vanish.

I would just keep an eye on it and make sure that you don't suddenly start seeing activity on it or something.
* 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 4 of 6
Anonymous
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Re: How will closing old accounts effect my score?

dnm45227
Super Contributor
Posts: 1218
Registered: 08-27-2007


dnm45227

Message 1 of 43

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foud this fico score estimator and it seem pretty close. also gives you a indication as the what fico specifically looks at by the questions it asks.
 
 
it's in the ball park for me, on the low end anyway.

 

aka "ducky" as of 11/18/07

 

 

This was a previous link posted by another poster. The link will take you to a simulator that can help estimate impact of removing history. The aging of accounts does have plateaus (alledgedly) and one of importance is the 15 and 20 year length of credit history. I canceled an account 10 years ago that turns out to be my oldest. It dropped off of TU recently and I lost 20 points. I had a hard time figuring it out at first, but that was the only difference between the three reports. The other two will recognize it in the next few months and I will probably loose those points too. The card would have had 22 years on it if I had not canceled. My next oldest is 18 years, so I should get it back in time. Kind of a stiff penalty for cleaning things up.

Having said all that, FICO appears to look at oldest and average ageof credit. It could hit either way. You may want to give Belks a call and see if you can transfer at your original date. As Hauling suggested, there may be a tie-in there. Can't hurt to ask if it is helping you. I have closed several cards lately but only by consolidating the CL and keeping the oldest card the active one. Cleans up the open accounts and helps the average age and does not damage util. This, obviously, only works with multiple cards from the same vendor.

 

Message 5 of 6
Anonymous
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Re: How will closing old accounts effect my score?

Thanks very much for the advice. That was my feeling as well.
Message 6 of 6
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