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Regular Contributor
jayrock24
Posts: 125
Registered: ‎08-28-2011
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closing accounts thats brand new

whats the difference between closing an account thats 1 month old and an account thats 12 months old as far as aaoa is concerned im planning on closing to new accounts how will this effect my score and or aaoa thanks

gardening tu fico 770 eq fico 735 ex fico 698 last app 2/27 chase freedom instant approval planing on gardening until my house search begins sometime in jun or july
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pizzadude
Posts: 9,674
Registered: ‎01-28-2010
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Re: closing accounts thats brand new

[ Edited ]

jayrock24 wrote:

whats the difference between closing an account thats 1 month old and an account thats 12 months old as far as aaoa is concerned im planning on closing to new accounts how will this effect my score and or aaoa thanks


AAoA includes all accounts, either open or closed.   So you might as well leave them open unless they have annual fees.  

 

The main issue with closing credit cards is the effect on your revolving utilization.    If your revolving utilization increases as a result of losing the credit limits then your FICO score might be lowered.    See this link:    http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

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