topic Re: AAoA Calculations...will closing these accounts INCREASE My Score? in General Credit Topics

AAoA Calculations...will closing these accounts INCREASE My Score?

DaWhole9 — Fri, 23 Sep 2022 16:38:59 GMT

I have 2 Credit One acounts. One is 1y 6m old and the other is 2y 6m old. I hvae 7 new accounts this year so my current AAoA is 4y 7m. Doing the calculations...closing both Credit One accounts will increse my AAoA to 60 months or 5 years. This will aslo allow me to ditch Credit One which I literally never use. Currently they are $1000 and $800 CL. My total available credit is $80k and I just got a CLI for my Apple card for an additional $5k which would more than make up for the loss in available credit. I also am under 1% utilisation as I pay off all cards monthly and never carry balances. I just wanna double check that I am not missing anything. It seems like I have nothing to lose and only things to gain by dumping my 2 Credit One cards. I wont miss teh available credit, the AAoA will go up, and I cut the only 2 cards with AFs even though now they have been waived but they should kick in again soon.

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

GZG — Fri, 23 Sep 2022 16:57:46 GMT

there's a super long thread somewhere on here that highlights scoring factors, if I could find it, I could look into it and remember if AAoA is a scoring factor or not

it doesn't sound intuitively right for closing an account to increase your score, but I would need to find that thread to be sure

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

FireMedic1 — Fri, 23 Sep 2022 17:48:15 GMT

Your AAoA is right now and gets older each month. It wont change scores by closing cards. Open or closed accounts which can count up to in most cases is 10 yrs is equated in your AAoA's. So closing 2 Credit 1's wont do a thing to AAoA's. Here is a AAoA calculator:

https://aaoa-calculator.org/

In some cases its been said keeping a total of 5 active open accounts is beneficial. But I wouldn't put much into it. Staying above 3 is known. If there was a nice point gain. People would be closing accounts left and right around here.

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

FireMedic1 — Fri, 23 Sep 2022 17:59:17 GMT

@DaWhole9 wrote:
I have 2 Credit One acounts. One is 1y 6m old and the other is 2y 6m old. I hvae 7 new accounts this year so my current AAoA is 4y 7m. Doing the calculations...closing both Credit One accounts will increse my AAoA to 60 months or 5 years. This will aslo allow me to ditch Credit One which I literally never use. Currently they are $1000 and $800 CL. My total available credit is $80k and I just got a CLI for my Apple card for an additional $5k which would more than make up for the loss in available credit. I also am under 1% utilisation as I pay off all cards monthly and never carry balances. I just wanna double check that I am not missing anything. It seems like I have nothing to lose and only things to gain by dumping my 2 Credit One cards. I wont miss teh available credit, the AAoA will go up, and I cut the only 2 cards with AFs even though now they have been waived but they should kick in again soon.

What is used each month on a card isnt a util % thats reported. Its whats reported come statement date that matters. So paying all cards to 0% before statement date. Is 0% util which is a 15-20pt penalty for not having accounts reported any activity. Since you dont carry balances your aggregate util % should stay at 1%. No matter how many acounts are open. If 1% is reported. And you pay before the due date after the statment cuts. Confused?

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

GZG — Fri, 23 Sep 2022 18:38:33 GMT

@FireMedic1 wrote:
Your AAoA is right now and gets older each month. It wont change scores by closing cards. Open or closed accounts which can count up to in most cases is 10 yrs is equated in your AAoA's. So closing 2 Credit 1's wont do a thing to AAoA's. Here is a AAoA calculator:
https://aaoa-calculator.org/
In some cases its been said keeping a total of 5 active open accounts is beneficial. But I wouldn't put much into it. Staying above 3 is known. If there was a nice point gain. People would be closing accounts left and right around here.

Perhaps OP meant AAoOA?

I really wish I could find the therad I was talking about, it's not on the big list of common threads

it's that super indepth guide to fico scoring

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

FireMedic1 — Fri, 23 Sep 2022 18:46:57 GMT

@GZG wrote:
@FireMedic1 wrote:
Your AAoA is right now and gets older each month. It wont change scores by closing cards. Open or closed accounts which can count up to in most cases is 10 yrs is equated in your AAoA's. So closing 2 Credit 1's wont do a thing to AAoA's. Here is a AAoA calculator:
https://aaoa-calculator.org/
In some cases its been said keeping a total of 5 active open accounts is beneficial. But I wouldn't put much into it. Staying above 3 is known. If there was a nice point gain. People would be closing accounts left and right around here.
Perhaps OP meant AAoOA?

I really wish I could find the therad I was talking about, it's not on the big list of common threads

it's that super indepth guide to fico scoring

In my fisrt reponce thats what I was trying to say. Open or closed still counts. My oldest closed account keeps getting updated from 30 yrs ago. Say no more. Dont wanna jinx it. Its figured in.

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

SouthJamaica — Fri, 23 Sep 2022 19:37:11 GMT

@DaWhole9 wrote:
I have 2 Credit One acounts. One is 1y 6m old and the other is 2y 6m old. I hvae 7 new accounts this year so my current AAoA is 4y 7m. Doing the calculations...closing both Credit One accounts will increse my AAoA to 60 months or 5 years. This will aslo allow me to ditch Credit One which I literally never use. Currently they are $1000 and $800 CL. My total available credit is $80k and I just got a CLI for my Apple card for an additional $5k which would more than make up for the loss in available credit. I also am under 1% utilisation as I pay off all cards monthly and never carry balances. I just wanna double check that I am not missing anything. It seems like I have nothing to lose and only things to gain by dumping my 2 Credit One cards. I wont miss teh available credit, the AAoA will go up, and I cut the only 2 cards with AFs even though now they have been waived but they should kick in again soon.

The AAoA for FICO takes into account both open and closed accounts. So closing accounts has zero immediate effect on your AAoA. The closed accounts will continue to be factored in so long as they continue to appear in your reports, which is typically 10 years or so, but sometimes longer, and sometimes shorter. Please do get rid of Credit One.

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

DaWhole9 — Fri, 23 Sep 2022 21:19:17 GMT

OK...I was confused which is why I posted in the first place..lol. So I was talking about Averge Age of OPEN Accounts...which isnt in the calculation credit score. AAoA includes all accounts open AND closed. Got it Thank you...so if I close an account, it just moves from one category to another but its still factored into my credit score. So closing an account really only changes the available credit and the utlisation. If its closed, does it still age? Or is it on my credit for 10 years as a 2 year 7 month account?

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

SouthJamaica — Fri, 23 Sep 2022 21:24:06 GMT

@DaWhole9 wrote:
OK...I was confused which is why I posted in the first place..lol. So I was talking about Averge Age of OPEN Accounts...which isnt in the calculation credit score. AAoA includes all accounts open AND closed. Got it Thank you...so if I close an account, it just moves from one category to another but its still factored into my credit score. So closing an account really only changes the available credit and the utlisation. If its closed, does it still age? Or is it on my credit for 10 years as a 2 year 7 month account?

Yes it ages.

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

DaWhole9 — Fri, 23 Sep 2022 21:32:05 GMT

Gotcha...So to summarize..no positives other than no AF on those 2 particular dog cards. The negatives will be those CL's will be removed from my available credit and that coud have a slight affect on utilisation. Thanks!!

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

CYBERSAM — Fri, 23 Sep 2022 21:36:35 GMT

@DaWhole9 wrote:
Gotcha...So to summarize..no positives other than no AF on those 2 particular dog cards. The negatives will be those CL's will be removed from my available credit and that coud have a slight affect on utilisation. Thanks!!

Yes! But you'll be much happier person because you no longer dealing with Credit One 🤑

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

FireMedic1 — Fri, 23 Sep 2022 22:41:58 GMT

@DaWhole9Not to confuse you more. Vantage or CK does not count closed accounts with AAoA's. So their will be a drop there. But it doesnt matter. FICO runs the show. That may have put a little question in your mind.

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

LendMeTheLoot — Sun, 24 Mar 2024 14:52:22 GMT

Your AAOA won't be affected and certainly won't increase with the closure of an account unless the trade line is completely deleted from your reports. This isn't super common.

Re: AAoA Calculations...will closing these accounts INCREASE My Score?

LendMeTheLoot — Sun, 24 Mar 2024 14:56:24 GMT

Closed accounts do not continue aging.