Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
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.