CC AGE OPEN VERSUS CLOSE IMPACT ON SCORE POSSIBLE MISTAKE?

swins24 — Wed, 28 Jul 2010 17:28:26 GMT

About a year ago I started the rebuild process by reading forums like crazy on my Fico and I open up a secured credit card with Applied bank as my first open cc to report in June. Right before the 1yr anniversary of the card I closed it to avoid the 79 annual fee. So now my next card that's open want be a year old until October. My question is should I have kept that account open until the other card was at least a year old and then closed it or was saving myself the annual fee In my best interest even tho I know that's sometime the cost of rebuilding. I know it will continue to report for ten yr but does it matter score wise if its a open account or closed? Should I receive an increase once my other card reaches a year old since it will be my first? I do have other cards all are under a year tho and some under 6 mos. Thanx for any help in helping me understand how this works im stuck at 650 on eq and 636 on TU fico.

Re: CC AGE OPEN VERSUS CLOSE IMPACT ON SCORE POSSIBLE MISTAKE?

Anonymous — Wed, 28 Jul 2010 17:34:13 GMT

It is still being considered when AAoA is computed. The only possible score impacts of closing this are if you carry a balance on your other card. In that case, instead of 1/2 cards showing a balance 1/1 cards will be reporting a balance, which is much more detrimental. It will also factor into your utilization percentage if you carry a balance.

The other impact will be in 7 years or 10 years, cant remember, that closed account will fall off your reports, thus decreasing your AAoA. However, by then, your recovery will likely be in full swing and you'll have many more accounts reporting as several years old, so the effect shouldn't be too much. Just try to get a couple more CC accounts reporting in the next year or so, I'd say.

topic CC AGE OPEN VERSUS CLOSE IMPACT ON SCORE POSSIBLE MISTAKE? in Credit Cards

CC AGE OPEN VERSUS CLOSE IMPACT ON SCORE POSSIBLE MISTAKE?

Re: CC AGE OPEN VERSUS CLOSE IMPACT ON SCORE POSSIBLE MISTAKE?