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Question about Closed CC Accounts?

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--HighHopes--
Regular Contributor

Question about Closed CC Accounts?

I notice that the amount of accounts you have is factored into your credit score according to CK.  Now normally I know CK is only for general overview, but does anyone know if this is true for the real FICO scoring?  According to them I am ranked grade letter "C" at 11-15 accounts.  So does having more accounts help to raise your score?  I know for sure that having a mix of accounts helps and I do have that.  My other question is do CC accounts that have been closed still count towards that total number of accounts for the 10 year period or do they stop counting when they are closed?  Also do auto and installment loans count or is it just CC?  Sorry for all the questions, but just trying to get a better idea of the scoringSmiley Happy




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MT936
Established Contributor

Re: Question about Closed CC Accounts?

Having a variety of credit accounts does help but it has a very small effect compared to the other factors

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Message 2 of 6
CreditPlay
Frequent Contributor

Re: Question about Closed CC Accounts?

I am  at 10 , so a D but my TU FICO is 792. You dont need to have  33 + cards to get better score as CK is saying.if you add more new cards your score will actually go down if you dont have enough old aged cards to backup your AAoA. Yes closed accounts are counted towards AAoA until they fall off after 10 yrs. Everying in report is counted somewhere in fico scoring.hard inquiries only counted for 1 year though.


         
FICO08 12/2014EQ 777TU 799EX 767
 
    
Message 3 of 6
Revelate
Moderator Emeritus

Re: Question about Closed CC Accounts?


@Jayx wrote:

I am  at 10 , so a D but my TU FICO is 792. You dont need to have  33 + cards to get better score as CK is saying.if you add more new cards your score will actually go down if you dont have enough old aged cards to backup your AAoA. Yes closed accounts are counted towards AAoA until they fall off after 10 yrs. Everying in report is counted somewhere in fico scoring.hard inquiries only counted for 1 year though.


+1.

 

As near as I can tell Credit Karma did a bit of reverse engineering and took their member data, sorted them by the TU New Accounts score they primarily use, then picked out some data to fit: people with long-established histories that have been using credit for various things, are more likely to have a higher score, and also more likely to have lots of accounts on their report.  I'm coming up on my 3 year anniversary of really establishing my credit, haven't gone "crazy" like some but even I have 16 accounts established with 9 open CC's, 1 closed CC over, and various installment loans over that period.

 

It's simply not needed though for FICO purposes, 3 open CC's and 2 open installment loans pretty much maxxes out every scorecard category that we've been able to test; also CK's score knows I talk smack about it (my own personal credit karma!) so it still hates my file even though I grade a B in that category.




        
Message 4 of 6
--HighHopes--
Regular Contributor

Re: Question about Closed CC Accounts?

Thanks for the info guys!  I know to always take the CK site with a grain of salt, but I was just wondering about the whole mix of Credit and how many accounts is truely considered ideal by the real FICO and how many is too much or too little, etc...  Just wanting to get all my ducks in a roll!  I appreciate the help!




Message 5 of 6
fused
Moderator Emeritus

Re: Question about Closed CC Accounts?


@--HighHopes-- wrote:

Thanks for the info guys!  I know to always take the CK site with a grain of salt, but I was just wondering about the whole mix of Credit and how many accounts is truely considered ideal by the real FICO and how many is too much or too little, etc...  Just wanting to get all my ducks in a roll!  I appreciate the help!


My wife has a pretty thin file and she doesn't have an open installment account. Her FICO scores are 812-818. I'm pretty darn certain her scores will go up with a new auto TL on her reports, even though she'll have a new account and a hard inq. I don't read anything at CK other than what's on my TU report.

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