topic Do closed accounts continue to age? and how they affect my average age of accounts? in Understanding FICO® Scoring

Do closed accounts continue to age? and how they affect my average age of accounts?

folks19 — Tue, 09 Jun 2020 01:33:42 GMT

Do closed accounts stop aging when they are closed but still on my report? consider the following example:

on 1/1/2014 i opened account 1

on 1/1/2015 i open account 2

on 1/1/2016, account 1 is 2 years, and account 2 is 1 year, so my average is 1.5. (1+2)/2=1.5.

if i now close account 2 on 1/1/2016, what's the age of account 2 on 1/1/2017, 1 year (because is was only open for 1 year) or 2 years (because it remains on my report)?

Re: Do closed accounts continue to age? and how they affect my average age of accounts?

SouthJamaica — Tue, 09 Jun 2020 01:50:57 GMT

@folks19 wrote:
Do closed accounts stop aging when they are closed but still on my report? consider the following example:
on 1/1/2014 i opened account 1
on 1/1/2015 i open account 2
on 1/1/2016, account 1 is 2 years, and account 2 is 1 year, so my average is 1.5. (1+2)/2=1.5.
if i now close account 2 on 1/1/2016, what's the age of account 2 on 1/1/2017, 1 year (because is was only open for 1 year) or 2 years (because it remains on my report)?

They continue to age so long as they continue to appear in your credit reports, which is usually -- but not always -- a long time.

Re: Do closed accounts continue to age? and how they affect my average age of accounts?

folks19 — Tue, 09 Jun 2020 02:00:16 GMT

@SouthJamaica wrote:
@folks19 wrote:
Do closed accounts stop aging when they are closed but still on my report? consider the following example:
on 1/1/2014 i opened account 1
on 1/1/2015 i open account 2
on 1/1/2016, account 1 is 2 years, and account 2 is 1 year, so my average is 1.5. (1+2)/2=1.5.
if i now close account 2 on 1/1/2016, what's the age of account 2 on 1/1/2017, 1 year (because is was only open for 1 year) or 2 years (because it remains on my report)?
They continue to age so long as they continue to appear in your credit reports, which is usually -- but not always -- a long time.

the truth is that my main concern was that they will remain on my report but stop aging. that would mean that the closed account will slow down my average aging. for example, if i have 1 open and 1 closed, my average age will only age by half a year. i just wanted to make sure that's not the case!

Re: Do closed accounts continue to age? and how they affect my average age of accounts?

TheKid2 — Tue, 09 Jun 2020 03:37:35 GMT

@folks19 wrote:
the truth is that my main concern was that they will remain on my report but stop aging. that would mean that the closed account will slow down my average aging. for example, if i have 1 open and 1 closed, my average age will only age by half a year. i just wanted to make sure that's not the case!

There's no the account is X old field - it's being calculated by the opened date. As long as time keeps moving, it will keep aging.