topic Account Aging in Understanding FICO® Scoring

Account Aging

Anonymous — Mon, 23 Jul 2007 21:40:29 GMT

I have a question on how the age of accounts is reviewed.

I have a relatively short credit history other than a few accounts. But when I do the score detail on the site it says I have a credit history of 2 years and this is hurting me. I have a few credit cards that I obtained at the end of last year and I would imagine this would hurt my average age.

My question is if I close these accounts would it help or does the age review closed accounts as well?

Also am I better off to request higher limits on my credit cards than to have 8 credit cards with low limits to increase the available revolving credit and increase my score?

Thanks again!

Re: Account Aging

fused — Mon, 23 Jul 2007 21:50:29 GMT

r92503lind wrote:
I have a question on how the age of accounts is reviewed.

I have a relatively short credit history other than a few accounts. But when I do the score detail on the site it says I have a credit history of 2 years and this is hurting me. I have a few credit cards that I obtained at the end of last year and I would imagine this would hurt my average age.

My question is if I close these accounts would it help or does the age review closed accounts as well?

Also am I better off to request higher limits on my credit cards than to have 8 credit cards with low limits to increase the available revolving credit and increase my score?

Thanks again!

1.) Open and closed accounts are weighed and scored equally by FICO, this specifically applies to average age of account and credit length history.

2.) With your situation I would not recommend you close all of your CCs.

3.) IMHO, the number of cards you choose is a personal decision. What matters most is how well you manage them. Personally I prefer fewer cards with higher CLIs. Yes, CLIs is one of a couple good ways to lower your util%, so is paying down balances.

Re: Account Aging

Anonymous — Mon, 23 Jul 2007 21:54:20 GMT

I was only thinking about doing this to 2 accounts I would not close ALL CC.

Does the FAKO calc method for EX and TU count closed and open accounts the same way as FICO?

Re: Account Aging

fused — Mon, 23 Jul 2007 22:03:28 GMT

r92503lind wrote:
I was only thinking about doing this to 2 accounts I would not close ALL CC.

Does the FAKO calc method for EX and TU count closed and open accounts the same way as FICO?

Not sure with the FAKOs! If you close any cards just pay very close attention to your util%, ideally you want 1-9% reporting.

Re: Account Aging

smallfry — Tue, 24 Jul 2007 01:32:17 GMT

@Anonymous wrote:
I was only thinking about doing this to 2 accounts I would not close ALL CC.
Does the FAKO calc method for EX and TU count closed and open accounts the same way as FICO?

Who cares what TC thinks?