topic Re: Closed 2 Credit Accounts, For the Better? in Credit Cards

Closed 2 Credit Accounts, For the Better?

Anonymous — Mon, 19 Dec 2011 05:20:56 GMT

Closed my PayPal SmartConnect and Kay Jewlers Credit Accounts with them. I have number used those cards at all. And PayPal has some issues on its website on viewing my account profile. Glad I closed them, because I will have an easier time in keeping track on my credit accounts.

Re: Closed 2 Credit Accounts, For the Better?

Anonymous — Mon, 19 Dec 2011 05:42:03 GMT

Well, your AoAA will take a ding as well as your UTIL (if they were reporting limits). But in the long run I don't think it'll hurt too much.

Re: Closed 2 Credit Accounts, For the Better?

haulingthescoreup — Mon, 19 Dec 2011 05:44:22 GMT

@Anonymous wrote:
Well, your AoAA will take a ding as well as your UTIL (if they were reporting limits). But in the long run I don't think it'll hurt too much.

Your AAoA is not affected when cards are closed, as long as the accounts report. (Typically 10 years after closing, although they can and do fall off sooner.)

AAoA (and oldest account) are factored on both open and closed accounts.

As long as an account is on your reports, whether open or closed, it is factored into your history.

Re: Closed 2 Credit Accounts, For the Better?

Anonymous — Mon, 19 Dec 2011 05:45:37 GMT

Well, I only said that cause they don't grow anymore, which I guess, In my opinion is a ding.

Re: Closed 2 Credit Accounts, For the Better?

Guava — Mon, 19 Dec 2011 05:46:13 GMT

The way I see it, the less hassle and confusion, the better!

Re: Closed 2 Credit Accounts, For the Better?

haulingthescoreup — Mon, 19 Dec 2011 05:54:58 GMT

@Anonymous wrote:
Well, I only said that cause they don't grow anymore, which I guess, In my opinion is a ding.

Not trying to be argumentative , and I'm not sure if I'm understanding what you're saying, but the age of a closed account continues to increase every year, and therefore it helps your AAoA every year, until it eventually falls off your reports, at which point you might see a ding due to lowered AAoA. But in most cases, people have acquired new credit along the way, and there isn't a dramatic drop in AAoA, and therefore there isn't a dramatic drop in your FICO scores.

However, closed accounts can and do come off early, especially on Equifax if you pull your own reports frequently (= lotsa soft pulls). And even Experian, which usually holds on to things until the end of time, stopped reporting one of my old closed accounts when the single late on it hit seven years. It was supposed to keep reporting until 10 years after closing, and they even listed this on my reports when it said "this account should remain until blah-blah", but it went poof when the 30 hit seven years.

It is true that obviously, your CL on a closed account won't continue to grow (in fact, if the account has a $0 balance, the CL is also $), so if that's what you were saying when you wrote "cause they don't grow anymore," then I agree.

Re: Closed 2 Credit Accounts, For the Better?

haulingthescoreup — Mon, 19 Dec 2011 05:58:39 GMT

@Anonymous wrote:
Closed my PayPal SmartConnect and Kay Jewlers Credit Accounts with them. I have number used those cards at all. And PayPal has some issues on its website on viewing my account profile. Glad I closed them, because I will have an easier time in keeping track on my credit accounts.

IMO, this can be a very legitimate reason to close accounts, even those without fees.

Your life shouldn't revolve around keeping track of your various credit accounts and paying this here and that there. Your credit should be your servant, not the other way around.

If you've read fused's Closing Credit Cards, and you've taken a week or two to think about all the ramifications of closing an account --as it relates to your personal credit situation --and it still makes sense, then go for it!

Re: Closed 2 Credit Accounts, For the Better?

Anonymous — Mon, 19 Dec 2011 06:11:54 GMT

I wasn't trying to be arguementative either. Oo. Just explaining what I thought was the bad points of closing accounts. From what I've been reading.. Closed accounts don't age, but I guess they do. Thanks for explaining that. I'm still fairly new at the credit thing. What I thought was that closed accounts kept the age up to the point of the time they closed.

Sorry for wall of text effect, posting from phone. Also sorry for semi-thread derailment.

Re: Closed 2 Credit Accounts, For the Better?

Smug — Mon, 19 Dec 2011 10:22:54 GMT

I did the same thing had a HSBC discover for 400.00 and a cap 1 for 750.00 now have NFCU 7.5 and Barclays 5k and PSECU 5k, my score didn't drop at all they were about a year old .

Re: Closed 2 Credit Accounts, For the Better?

CS800 — Mon, 19 Dec 2011 11:15:10 GMT

@haulingthescoreup wrote:
@Anonymous wrote:
Well, your AoAA will take a ding as well as your UTIL (if they were reporting limits). But in the long run I don't think it'll hurt too much.
Your AAoA is not affected when cards are closed, as long as the accounts report. (Typically 10 years after closing, although they can and do fall off sooner.)

AAoA (and oldest account) are factored on both open and closed accounts.

As long as an account is on your reports, whether open or closed, it is factored into your history.

Great now i can close my $500 cap one with the $60 af

Re: Closed 2 Credit Accounts, For the Better?

RockinRay — Mon, 19 Dec 2011 14:38:32 GMT

Kick that thing to the curb - and feel good about it!

Ray

Re: Closed 2 Credit Accounts, For the Better?

Juan123 — Mon, 19 Dec 2011 14:45:51 GMT

i didn't know that..... thats very good information hauling, question, so it won't affect my score closing my oldest card since it'll keep reporting?!?!?! because i hate both my capital one cards but they're both my oldest cards.

Re: Closed 2 Credit Accounts, For the Better?

MarineVietVet — Mon, 19 Dec 2011 16:32:13 GMT

@Juan123 wrote:
i didn't know that..... thats very good information hauling, question, so it won't affect my score closing my oldest card since it'll keep reporting?!?!?! because i hate both my capital one cards but they're both my oldest cards.

A closed account in good standing generally will continue to report for about 10 years after being closed. Here is the thread recommended for reading about the pros and cons of Closing Credit Cards.

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Re: Closed 2 Credit Accounts, For the Better?

haulingthescoreup — Tue, 20 Dec 2011 05:02:05 GMT

@Anonymous wrote:
I wasn't trying to be arguementative either. Oo. Just explaining what I thought was the bad points of closing accounts. From what I've been reading.. Closed accounts don't age, but I guess they do. Thanks for explaining that. I'm still fairly new at the credit thing. What I thought was that closed accounts kept the age up to the point of the time they closed.

Sorry for wall of text effect, posting from phone. Also sorry for semi-thread derailment.

No prob. The whole idea of closed accounts continuing the help is so counter-intuitive that sometimes we have to sort of poke at posts to see what's going on.

And you do a whole lot better posting from a phone than I do. Auto-correct is going to get me into serious trouble one day!

Re: Closed 2 Credit Accounts, For the Better?

Anonymous — Tue, 20 Dec 2011 05:10:54 GMT

I love my physical keyboard. ^_^- It automatically disables autocorrect and the keys are spaced out nicely to type fast.

Re: Closed 2 Credit Accounts, For the Better?

android01 — Tue, 20 Dec 2011 05:44:40 GMT

@haulingthescoreup wrote:
@Anonymous wrote:
I wasn't trying to be arguementative either. Oo. Just explaining what I thought was the bad points of closing accounts. From what I've been reading.. Closed accounts don't age, but I guess they do. Thanks for explaining that. I'm still fairly new at the credit thing. What I thought was that closed accounts kept the age up to the point of the time they closed.

Sorry for wall of text effect, posting from phone. Also sorry for semi-thread derailment.
No prob. The whole idea of closed accounts continuing the help is so counter-intuitive that sometimes we have to sort of poke at posts to see what's going on.

And you do a whole lot better posting from a phone than I do. Auto-correct is going to get me into serious trouble one day!

What's really cool is when a closed account falls of your credit report after ten years which is younger than your AAoA. Your AAoA goes UP.