topic Re: Opinion Needed Please :) in Credit Cards

Opinion Needed Please :)

Anonymous — Fri, 12 Jun 2015 09:20:45 GMT

My AAoA is about 2 years but I just opened 2 new accounts (1 in april and 1 in may). The limits arent very high...(Discover $200 and Blaze MC $750). Almost every card I have was opened 2 years ago this coming August or sooner. After thinking about the decision to open these cards, I'm wanting to close them to boost my AAoA. The only downfall is losing $950 cushion..which I'm not totally worried about. My Debt is about $4,000. Available credit is $43,000. I'm kind of convinced I Should close them. Please lmk what you think..

Thank you for your help

Re: Opinion Needed Please :)

core — Fri, 12 Jun 2015 09:26:01 GMT

@Anonymous wrote:
After thinking about the decision to open these cards, I'm wanting to close them to boost my AAoA.

Unfortunately, closing them will not help AAoA. The damage has already been done and there's nothing you can do about it at this point.

Re: Opinion Needed Please :)

Anonymous — Fri, 12 Jun 2015 09:33:36 GMT

Oh! Well, I Am glad to know that now as opposed to after closing them. I'll be doing some cleaning up and gardening for at least six months. Thanx for your response.

Re: Opinion Needed Please :)

Anonymous — Fri, 12 Jun 2015 12:37:31 GMT

Keep them open for a year and then close it for you still want to do it. They will still remain on your report for the next 10 years.

Re: Opinion Needed Please :)

takeshi74 — Fri, 12 Jun 2015 12:40:18 GMT

See also this thread linked in the Helpful Threads sticky:

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true

Unfortunately, the time to worry about impact to AAoA is before applying -- not after. Chalk it up as a learning experience.

Re: Opinion Needed Please :)

Anonymous — Sat, 13 Jun 2015 21:34:09 GMT

Thank you for your help! I'll keep them open for now. Can you explain how the AAoA is calculated ?

Re: Opinion Needed Please :)

gdale6 — Sat, 13 Jun 2015 22:31:51 GMT

@Anonymous wrote:
Thank you for your help! I'll keep them open for now. Can you explain how the AAoA is calculated ?

Different scoring models calculate it in different ways. With Fico scoring its calculated on all open and closed OC accounts.

Re: Opinion Needed Please :)

Anonymous — Sat, 13 Jun 2015 23:10:42 GMT

Ok thank you! What is OC accounts?

Re: Opinion Needed Please :)

core — Sat, 13 Jun 2015 23:59:47 GMT

OC = Original creditor

as opposed to

CA = Collection agency

Re: Opinion Needed Please :)

Anonymous — Sun, 14 Jun 2015 02:00:22 GMT

Okay! Do you suggest keeping them each open for 24 months and charge something once a month to show payments on them and then close them after the 24 months?

Re: Opinion Needed Please :)

NRB525 — Sun, 14 Jun 2015 02:07:40 GMT

@Anonymous wrote:
Okay! Do you suggest keeping them each open for 24 months and charge something once a month to show payments on them and then close them after the 24 months?

Yes, use the Discover card, but do not close it. But more importantly, take note of that $200 Discover limit. That is an indication you were close to being denied. You should, in all honesty, not be applying for anything for a year or more to let your score have a chance to recover and continue to grow. Discover is one of those cards you want to have in your wallet forever, just because it's so basically beneficial and low cost. So talking about closing Discover doesn't make a lot of sense.

Close some of those Store Cards that are clogging up your report.

Re: Opinion Needed Please :)

Anonymous — Sun, 14 Jun 2015 02:18:07 GMT

Won't the closed accounts still show up on my CR? I started making a list of cards to close. So far I only have 4. Thank you for the tips about discover. I am gardening so I do not plan to apply for anything more until COs drop off in March next year. There's a few more things still to come off in 2-2017 and 8-2017. So I have plenty of time to garden. I am going to try to get the 2017 items removed beginning next week..they are PRs that I can file a motion for I found out by reading here.

I'll keep the discover but the Blaze card needs to go I think.