topic Re: Delete new account that I closed, ruined AAoA in General Credit Topics

Delete new account that I closed, ruined AAoA

Anonymous — Sun, 24 Feb 2019 00:00:39 GMT

When a new credit card was opened it tanked the score because it dropped the Average age of accounts. The account has been closed, now it's still pulling down the AAoA. How can it be removed from the reports?
Tia

Re: Delete new account that I closed, ruined AAoA

Anonymous — Sun, 24 Feb 2019 03:42:39 GMT

You cannot remove it.

Your report contains both open and closed accounts for 7-10 years.

Re: Delete new account that I closed, ruined AAoA

Anonymous — Sun, 24 Feb 2019 03:48:26 GMT

Bummer, would that be considered black hat if someone removed the account and inquiry?

Re: Delete new account that I closed, ruined AAoA

Anonymous — Sun, 24 Feb 2019 04:34:14 GMT

@Anonymous wrote:
When a new credit card was opened it tanked the score because it dropped the Average age of accounts.

Looking at your sig, it appears you have a bunch of open accounts and who knows how many closed ones (all count toward AAoA). That being said, opening a new account won't "tank" your scores as the impact to your AAoA is going to be quite minor. The only age of accounts factor that could result in a decent drop would be if your AoYA went from 12+ months to 0 months... basically meaning if you haven't opened an account in over a year prior to this one.

Re: Delete new account that I closed, ruined AAoA

Anonymous — Sun, 24 Feb 2019 19:29:07 GMT

@Anonymous wrote:
@Anonymous wrote:
When a new credit card was opened it tanked the score because it dropped the Average age of accounts.
Looking at your sig, it appears you have a bunch of open accounts and who knows how many closed ones (all count toward AAoA). That being said, opening a new account won't "tank" your scores as the impact to your AAoA is going to be quite minor. The only age of accounts factor that could result in a decent drop would be if your AoYA went from 12+ months to 0 months... basically meaning if you haven't opened an account in over a year prior to this one.

I thought AAoA < 2 years was a pretty big drop?

Re: Delete new account that I closed, ruined AAoA

Anonymous — Sun, 24 Feb 2019 23:14:55 GMT

What's likely tanking your score is a combination of three factors:

1. Your AAoA dropped

2. You have an inquiry

3. You have a "new account" penalty (even if it's closed)

The first two are pretty well known effects.

I believe I have some data to support the claim that #3 is a real thing, that there is some sort of "new account" penalty that impacts you for accounts that are less than a year old, and that it is not explained only through impact from AAoA and inquiries.

Here is the data; I opened two cards with BoA about a month apart, my Premium Rewards card followed by a Cash Rewards. The first incurred a HP and some impact to my AAoA so of course it moved my score a little, but not much, as I recall it dropped 3-4 points. The second had a bigger impact, dropping my score a further 5-7 points.

And what's surprising about that is that the second card did not have a HP, and did not move my AAoA across any "year boundary". So what happend there? It must be that there's some sort of increasing penalty for having new accounts, and when I went from 0 to 1 new account it hit me a little, and when I went from 1 to 2 new accounts it hit me a lot harder.

My score has stayed pretty stable, consistently around 750, for months and months after that. Now a year later it's climbing back and is at 760. That was nearly a year ago so I'll be interested to see what happens when that inquiry falls off, and then when the neweset card goes >12m.

Re: Delete new account that I closed, ruined AAoA

Anonymous — Mon, 25 Feb 2019 02:24:15 GMT

@Anonymous wrote:
I thought AAoA < 2 years was a pretty big drop?

I have not seen the OP quantify his AAoA drop with a provided before/after AAoA, so who knows. I can't see the change being major though based on his file thickness. Any score "tank" related to an AAoA threshold crossing would be crossed back in the other direction within a couple of months tops.