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Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
0

effect of closing accounts that are under a year old?

now i know i shouldnt close accounts unless they have an annual fee. 

but if my plan goes right i dont want to carry around 3 cards from one company. 

if i can get them to merge my cl onto one card and close the other two. 

 

how bad is it to close accounts less then 6 months old? 

1 account i didnt take an inq for and 1 i did. 

that inq will be a year old in july. 

 

i know they still report as paid for 10 years etc... 

current cards 9 and installment loan

aaoa is about 10 months (from new cards this summer) 

if i get them to do what i want though i will gladly not apply for anything until aug/sep of 2015 unless amex in jan of 14' (if i accept the card)

 

thoughts? advice? 

i know i sound like a broken record since i posted this in the cc forums as well but im really torn!

Current: Discover Fico 701 10/14 Walmart Fico 689 9/14

Inquiries (24 Months): EQ 3 TU 0 EX 0 | Most Recent: 09/26/2014


2014 Goals:
Lower Utility
47%(OUCH!!)
Freedom Signature

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: effect of closing accounts that are under a year old?

Per FICO, there really isn't any impact. AAoA stays the same. Mix stays the same. The only factor is the impact to util and that only applies if you are carrying balances on your other CCs.

Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
0

Re: effect of closing accounts that are under a year old?


llecs wrote:

Per FICO, there really isn't any impact. AAoA stays the same. Mix stays the same. The only factor is the impact to util and that only applies if you are carrying balances on your other CCs.


well my aaoa will drop a little from adding another account. util reporting right now is 4 percent but will be about 18 next month

bought tv and acsserois for about 1800 at 0% for 2 years. but it will be paid off by march anyways. 

 

the 5000 limit would drop the util from 18 to 11. 

the main reason why i want the card is that its a real card and not a store card. 

which from what i hear chase will match.  recently got walmart to 5k. next highest at 3.5k macys store. my other card from that bank is at 2k

if they can move all my lines together from that bank and have a 7500 limit would be great

 

i called already and asked and they dont offer a sig version of any kind with this bank. but chase does and amex to follow in the coming years. 

since im already in amex they wont close my accout... (hoping lol) and hoping chase will match or higher even with a hard pull after i have the card for a couple years. 

its at 500 (when i apped i only had one other non store card at 500)  ive used it to max and pif since july. and havent seen any increases. 

annualized salary is 32k without bonuses that roughly average 5k a year. 

Current: Discover Fico 701 10/14 Walmart Fico 689 9/14

Inquiries (24 Months): EQ 3 TU 0 EX 0 | Most Recent: 09/26/2014


2014 Goals:
Lower Utility
47%(OUCH!!)
Freedom Signature

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: effect of closing accounts that are under a year old?

Adding accounts can drop your AAoA, not to mention the new account ding. But closing them you'll be OK.

 

 

Valued Contributor
creditnocash
Posts: 2,255
Registered: ‎07-23-2012
0

Re: effect of closing accounts that are under a year old?

the new account ding is one year correct? 

or 2? 

 

like i said id only be taking the new account ding/ drop in aaoa since this is done via a soft pull. 

Current: Discover Fico 701 10/14 Walmart Fico 689 9/14

Inquiries (24 Months): EQ 3 TU 0 EX 0 | Most Recent: 09/26/2014


2014 Goals:
Lower Utility
47%(OUCH!!)
Freedom Signature

Amex Zync(Unicorn)
Chase Freedom$1500
Discover IT$2900
Citi Diamond Preferred$6000
Citizens Mastercard$7000
Moderator Emeritus
llecs
Posts: 32,869
Registered: ‎08-04-2007
0

Re: effect of closing accounts that are under a year old?


creditnocash wrote:

the new account ding is one year correct? 

or 2? 

 

like i said id only be taking the new account ding/ drop in aaoa since this is done via a soft pull. 


IME, I've always rebounded most of the points within 6 months. Virtually all by a year. I've also been rebucketed resulting in larger losses, and that took a while to recover from, but also AAoA dropped by a couple.

 

If you need the account, you need it. I have a couple dozen open CCs right now and regret half of them. But that won't preclude me from apping in the future.


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