topic Re: Closed Account Removed, Took a 18 Point Drop in Understanding FICO® Scoring

Closed Account Removed, Took a 18 Point Drop

Time2letgo — Tue, 04 Sep 2018 16:33:48 GMT

My oldest account which I closed over ten years ago was just removed from all three bureaus. For months I kept wondering how this would have affected my score when it finally happened, as I knew it was on the horizon. Resulted in a eighteen point decrease across the board. If I knew then, what I know now I would have kept it open since it was the oldest account.

Re: Closed Account Removed, Took a 18 Point Drop

stw715 — Tue, 04 Sep 2018 16:47:30 GMT

What’s your next oldest account and how old was the removed account?

Re: Closed Account Removed, Took a 18 Point Drop

Thomas_Thumb — Tue, 04 Sep 2018 16:54:43 GMT

Yes - details would be useful.

1) Before/after score on each of the three CRAs, if available

2) Age of oldest account on file before/after drop off.

3) AAOA before/after drop off.

Re: Closed Account Removed, Took a 18 Point Drop

Time2letgo — Tue, 04 Sep 2018 18:52:12 GMT

@Thomas_Thumb wrote:
Yes - details would be useful.

1) Before/after score on each of the three CRAs, if available
2) Age of oldest account on file before/after drop off.
3) AAOA before/after drop off.

These are the scores and before & after results.

EQ TU EX

Scores 751 750 749

733 732 729

AAoA 3y 8m 3y 4m 3y 2m

3y 5m 3y 1m 3y 0m

AoOA 23y 4m 23y 4m 23y 4m

20y 4m 19y 1m 20y 2m

Re: Closed Account Removed, Took a 18 Point Drop

Anonymous — Tue, 04 Sep 2018 19:24:21 GMT

What is your AOYA? Do you have any derogs? With 20 years of history your score should be higher if you're clean.

Re: Closed Account Removed, Took a 18 Point Drop

stw715 — Wed, 05 Sep 2018 01:02:24 GMT

Assume I read it correctly. Seemingly rather large scoring movement for such minor reduction in age of credit.

Re: Closed Account Removed, Took a 18 Point Drop

Time2letgo — Wed, 05 Sep 2018 03:13:04 GMT

Clean reports, nothing negative but most of my open accounts are fairly new. Had BK in 2005 and didn't start rebuilding until 2013. So there were only a couple accounts that were clean and remained on reports post BK. My scores have been in the ranges of 750s - 760s in the past year, except for when I do app sprees and take a hit for the inquiries and new accounts reporting. There were no other changes reported this month except for removal of the oldest account.

Re: Closed Account Removed, Took a 18 Point Drop

JVille — Wed, 05 Sep 2018 03:40:36 GMT

BK and App Sprees 🙄

Re: Closed Account Removed, Took a 18 Point Drop

Thomas_Thumb — Wed, 05 Sep 2018 03:42:26 GMT

@Time2letgo wrote:
@Thomas_Thumb
These are the scores and before & after results.

EQ TU EX
Scores 751 750 749
733 732 729

AAoA 3y 8m 3y 4m 3y 2m
3y 5m 3y 1m 3y 0m

AoOA 23y 4m 23y 4m 23y 4m
20y 4m 19y 1m 20y 2m

Those changes in age are insignificant and don't account for the score change. The 18 point drop is typical for the penalty associated with: "no recent activity on revolving accounts". Charge cards and, in many cases, AU cards don't count toward revolving activity.

Your score drop is also typical for a spike in aggregate revolving utilization. For example, going from 6% to 11% which crosses the 9% threshold. Another utilization example would be increasing highest individual card utilization to 55% from 20% which crosses two thresholds: 29% and 49%.

Paying off an only loan or refinancing a loan that spikes installment B/L could also produce a drop of this magnitude.

Re: Closed Account Removed, Took a 18 Point Drop

SouthJamaica — Wed, 05 Sep 2018 11:31:38 GMT

@Time2letgo wrote:
@Thomas_Thumb wrote:
Yes - details would be useful.

1) Before/after score on each of the three CRAs, if available
2) Age of oldest account on file before/after drop off.
3) AAOA before/after drop off.
These are the scores and before & after results.

EQ TU EX
Scores 751 750 749
733 732 729

AAoA 3y 8m 3y 4m 3y 2m
3y 5m 3y 1m 3y 0m

AoOA 23y 4m 23y 4m 23y 4m
20y 4m 19y 1m 20y 2m

Wow, that's a lot of points to lose for such a trivial difference. Sorry.

Re: Closed Account Removed, Took a 18 Point Drop

Time2letgo — Sun, 30 Sep 2018 05:47:09 GMT

@JVille wrote:
BK and App Sprees 🙄

BK was 2003, that has been cleared from my reports for years now.

Re: Closed Account Removed, Took a 18 Point Drop

Bees18 — Fri, 07 Sep 2018 09:17:12 GMT

Does it fall off 10 yrs from when it was closed or when it was last reported...anyone know?

Re: Closed Account Removed, Took a 18 Point Drop

Anonymous — Fri, 07 Sep 2018 12:37:50 GMT

10 years from when it was closed.

It can be deleted earlier or later than the 10 year mark, though in most cases it is 10 years from closure (+/- one month). Some people have noticed accounts on their reports that were closed 15 years ago or more. In the case of early deletions (e.g. at year 7) those are sometimes attributable to a person arguing with the creditor about a closed account, in which case the creditor may get fed up and just delete it.

I am curious whether how the next year will play out. There are many thousands of credit cards that were closed by the issuer in late 2008 and in 2009 as a result of the financial meltdown. It will be interesting to see whether the CRAs delete all of these promptly at the 10 year mark.

Re: Closed Account Removed, Took a 18 Point Drop

Bees18 — Sat, 08 Sep 2018 20:20:22 GMT

Ok so if that's the case then my husband will have to closed account falling off in 6 months.

Anyone know how big of drop he could recieve and if there is anything he could do to buffer it?

His score now is between 815-825 and is now clean.

his oldest card is 12 yrs that is open
he has two closed cards at 9.5 years
two at 6 months
one SSL at six months
and one new card from august that hasn't reported.

Re: Closed Account Removed, Took a 18 Point Drop

Time2letgo — Mon, 10 Sep 2018 17:12:29 GMT

@Bees18 wrote:
Ok so if that's the case then my husband will have to closed account falling off in 6 months.

Anyone know how big of drop he could recieve and if there is anything he could do to buffer it?

His score now is between 815-825 and is now clean.

his oldest card is 12 yrs that is open
he has two closed cards at 9.5 years
two at 6 months
one SSL at six months
and one new card from august that hasn't reported.

The difference may not be that great since his oldest account is still open. In my case the account that was removed was my oldest account and most of my remaining open accounts are relatively new in comparison.