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Member
Posts: 16
Registered: ‎10-12-2012
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Oldest Account On Fico

About the oldest account opened on Fico score, is this the oldest account opened/closed?
I understand that closing account has No effect on AAOA as it stays on the report for 10 years
and it Does affect util ratio as credit limit is no longer available.
What about Oldest account opened section of Fico?
I am asking because I wish close my oldest accont and want to know if it would have any effect on my length of history.

Thank you for your time reading my post ! :d

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Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Oldest Account On Fico

Just like with AAoA, the oldest account is included whether opened or closed. Closing an account won't impact your length of history.

Valued Contributor
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Registered: ‎01-05-2010
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Re: Oldest Account On Fico

I'm idly curious. Why do you wish to close your oldest account?

 

Never underestimate the power of denial
Member
Posts: 16
Registered: ‎10-12-2012
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Re: Oldest Account On Fico

Thank you for yor reply.

Say my oldest account is 15 years old

and I have 3 other accounts; all are 5 years old.

Even after I close my oldest account, my "oldest account opened" should be 15 years ago.

DId I understand correctly?

Thank you again for your time and help! :d

 

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Oldest Account On Fico

Strike the word "opened" from your quotes. Per FICO, it doesn't matter if it is opened or closed. Your oldest account will be 15 years old today when opened and still will be 15 years old if closed tomorrow.

 

The reason the prev. poster asked why is because of you close this 15-yr old account now, it'll still factor into your length of history and AAoA. However, in 10 years it will disappear from your CRs. In other words, it is 10 years between your oldest and 2nd oldest. Once it deletes, you lose 10 years of history and you'd likely see a significant score drop...but that's 10 years from now.

Member
Posts: 16
Registered: ‎10-12-2012
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Re: Oldest Account On Fico

Thank you for your help.

I think I understood. So once the account is closed, it no longer grows.

1 Year old account will be 2 yrs old next year.

But If I close that account today, it will stay 1 year old next year.

Did I understand correctly?

 

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Oldest Account On Fico


sjf0sauf09u109 wrote:

Thank you for your help.

I think I understood. So once the account is closed, it no longer grows.

1 Year old account will be 2 yrs old next year.

But If I close that account today, it will stay 1 year old next year.

Did I understand correctly?

 


No.

 

If an account is opened on 11/2000, it is 12 years old today.

 

If an account is opened on 11/2000, and closed tomorrow, then 8 years from now in 2020 (if still reporting), it'll be 20 years old, not 12, and scored as a 20 year old acct.

 

It doesn't matter per FICO when you closed an account. It'll still factor in whether closed or not per age and AAoA.

 

What we are saying is if you have an account, and you close it now, then it'll delete in about 10 years. This is a general guideline as used by the credit reporting agencies. You said you have a 15 year old account. If you close it now, it'll be a 25 year old account, but at the age of 25, it'll likely delete (again, the 10-yr guideline). If that deletes, you lose 25 years of history. It'll drop from 25 years to 15 years and that'll result in a very significant FICO hit 10 years from the date you close it.

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