New Member
eklausmeyer
Posts: 10
Registered: ‎11-16-2012
How soon will closing an account factor into your score?

I know for a fact that the credit lines of closed accounts will still impact your utilization (and thereby affect your score) for 12 months after closing.

 

I am trying to find out if closing accounts will impact my average account age immediately, or will also have some sort of delay?

 

The trouble is, in an effort to improve my utilization, I went on a spree and opened a handful of accounts all at once. They don't have balances, so my utilization was helped big-time. BUT, it's hurting my average account age! With 4 newly opened accounts, my average age went from 6 years to 3 years and 9 mos!!!!! OUCH!

 

If I go and close those accounts, will my average age get fixed immediately (when the accounts update, of course)?

 

So... anybody know the answer to this for sure? Reasonable guestimations will be accepted.

I work full time as a credit analyst for one of the largest credit card issuers in the U.S. But, I am also a consumer trying to build my own credit!
Moderator Emeritus
llecs
Posts: 32,880
Registered: ‎08-04-2007
Re: How soon will closing an account factor into your score?

eklausmeyer wrote:

I know for a fact that the credit lines of closed accounts will still impact your utilization (and thereby affect your score) for 12 months after closing.

 

I am trying to find out if closing accounts will impact my average account age immediately, or will also have some sort of delay?

 

The trouble is, in an effort to improve my utilization, I went on a spree and opened a handful of accounts all at once. They don't have balances, so my utilization was helped big-time. BUT, it's hurting my average account age! With 4 newly opened accounts, my average age went from 6 years to 3 years and 9 mos!!!!! OUCH!

 

If I go and close those accounts, will my average age get fixed immediately (when the accounts update, of course)?

 

So... anybody know the answer to this for sure? Reasonable guestimations will be accepted.



Closed CCs, including HELOCs and LOCs up to a certain limit, will still fully factor into revolving util provided a balance is showing and they are updating to your CR. I've had closed CCs w/ a balance factor in for years after the closure date (back in my old not-so-bright-credit days).

 

Any closed CC w/ a reported $0 balance are immediately removed from util calcs.

 

FICO scores AAoA heavily. AAoA as viewed by FICO includes ALL OC accounts, whether opened or closed, good or bad and rounds down to the nearest whole number. So closing an account wouldn't impact AAoA at that moment because the account should still be reporting. If you went from 6 years to 3 years then I imagine that would have hurt aside from the new acct ding.

New Member
eklausmeyer
Posts: 10
Registered: ‎11-16-2012
Re: How soon will closing an account factor into your score?

Yeah I wasn't concerned about the inquiries at all really, concerned just about average age of accounts. Sounds like no matter what I do, I'll have wait it out.

I work full time as a credit analyst for one of the largest credit card issuers in the U.S. But, I am also a consumer trying to build my own credit!