topic AAoA question in Understanding FICO® Scoring

AAoA question

OniStringer — Mon, 14 Oct 2024 17:54:07 GMT

So ever since my student loans got split into about 17 different accounts. I have a few of them that are about a year older than my oldest credit card (Capital One Platinum) and a few of them that are equally as old give or take a few months.

I have been thinking about closing my platinum card, solely for the reason is that I never plan to use that card ever again. I do know it would be benefical to keep it active as my oldest card.

Does AAoA include all types of accounts and if so, do you think there would be much of a negavtive impact if I do cancel the platinum card?

Re: AAoA question

SouthJamaica — Mon, 14 Oct 2024 18:10:45 GMT

@OniStringer wrote:
So ever since my student loans got split into about 17 different accounts. I have a few of them that are about a year older than my oldest credit card (Capital One Platinum) and a few of them that are equally as old give or take a few months.

I have been thinking about closing my platinum card, solely for the reason is that I never plan to use that card ever again. I do know it would be benefical to keep it active as my oldest card.

Does AAoA include all types of accounts and if so, do you think there would be much of a negavtive impact if I do cancel the platinum card?

There would be no immediate impact from closing it, but I would advise you to upgrade it, rather than close it.

Re: AAoA question

OniStringer — Mon, 14 Oct 2024 18:14:41 GMT

@SouthJamaica wrote:
@OniStringer wrote:
So ever since my student loans got split into about 17 different accounts. I have a few of them that are about a year older than my oldest credit card (Capital One Platinum) and a few of them that are equally as old give or take a few months.

I have been thinking about closing my platinum card, solely for the reason is that I never plan to use that card ever again. I do know it would be benefical to keep it active as my oldest card.

Does AAoA include all types of accounts and if so, do you think there would be much of a negavtive impact if I do cancel the platinum card?
There would be no immediate impact from closing it, but I would advise you to upgrade it, rather than close it.

Yeah, I have tried multiple times to upgrade it, they literally will not for some reason. But will pre approve me for all of their cards. Its such an odd scenario.

Re: AAoA question

SouthJamaica — Mon, 14 Oct 2024 18:23:02 GMT

@OniStringer wrote:
@SouthJamaica wrote:
@OniStringer wrote:
So ever since my student loans got split into about 17 different accounts. I have a few of them that are about a year older than my oldest credit card (Capital One Platinum) and a few of them that are equally as old give or take a few months.

I have been thinking about closing my platinum card, solely for the reason is that I never plan to use that card ever again. I do know it would be benefical to keep it active as my oldest card.

Does AAoA include all types of accounts and if so, do you think there would be much of a negavtive impact if I do cancel the platinum card?
There would be no immediate impact from closing it, but I would advise you to upgrade it, rather than close it.

Yeah, I have tried multiple times to upgrade it, they literally will not for some reason. But will pre approve me for all of their cards. Its such an odd scenario.

Capital One is a weird company.

If your platinum card has an annual fee, I guess you should call up and close it before the annual fee becomes due. I mention "call" because they might have a retention offer to keep you from closing it.

The account will continue to report and be counted in AAoA after it is closed, typically for many years.

Re: AAoA question

FicoMike0 — Mon, 14 Oct 2024 18:49:43 GMT

Unless the card has a fee, I don't see any advantage to closing it. Put it in your sock drawer, they will probably eventually close it for lack of use. Meanwhile it will keep aging and report its credit limit.

Re: AAoA question

Slabenstein — Mon, 14 Oct 2024 21:38:18 GMT

AAoA includes installments like student loans. Being installments, they will eventually fall off of your reports once paid, just like the Cap1 Plat would eventually fall off if you close it. But, like @SouthJamaica said, closing the Plat wouldn't have any immediate impact on your aging metrics. The only immediate score impact it could have would be if losing $800 in TCL would appreciably affect your aggregate utilization. $800 is about 8.7% of your current $9,200 TCL, so it's not nothing, but whether that would move the needle depends on how you're using your cards. The other thing to consider is how much AoOA and AoORA you would lose when the Plat fell off your reports. If, e.g., the Plat is 10 years older than your next oldest card, it would probably be worth keeping just to anchor ages long term. But if it's only 9 mo's or something older, then this really isn't a consideration.

Re: AAoA question

Thomas_Thumb — Tue, 15 Oct 2024 16:41:24 GMT

@OniStringer wrote:
So ever since my student loans got split into about 17 different accounts. I have a few of them that are about a year older than my oldest credit card (Capital One Platinum) and a few of them that are equally as old give or take a few months.

I have been thinking about closing my platinum card, solely for the reason is that I never plan to use that card ever again. I do know it would be benefical to keep it active as my oldest card.

Does AAoA include all types of accounts and if so, do you think there would be much of a negavtive impact if I do cancel the platinum card?

All account types factor into AAoA. Each of the propagated student loans will be part of the calculation.

Fico looks at AoOA and AoYA as well. If your CC has no annual fee, consider keeping it open and use it atleast every 6 months to avoid potential closure.

It is very important to have open and active revolving credit accounts to help boost score. Also, Fico 8,9,10 look at AoYRA in scoring. If under 12 months there is a substantial penalty.