AAoA Question

[jlfce1]

I apologize if I'm posting this under the wrong Forum, but here goes my question:

My oldest account reporting is 2003.  I just opened a new account this 5/31/2012. I have accounts (student loans and additional cards opened in between these dates) My score wasn't affected, but my AAofA dropped by 2 months (not a huge deal...will make that up shortly). 

How will my AAofA be affected if I close two accounts that were opened in 2008, neg/pos? (there will no longer be any accounts reported open for that year)? 

The reason I want to close them is because one is a Target Card ($500/no AF) that I never use and the other is a Cap1 (AF $39/CL 750) which I never use. I've tried a CLI, etc. with no problems.  My new card I opened is a $6000 limit 0% for 12 months, so it makes up for the $1250 CL combined so I'm not worried about that. 

 If there is anything additional needed to assist with my questions, please let me know.  Thanks for any insight you can provide!

[HiLine]

Have you read this sticky thread yet?

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190

[b_seeker]

Your AAoA will not be affected by closing accounts until they fall off about 10 years after they are closed. AAoA takes into account both open and closed cards so you should keep the Target open cause of no AF. If you see a score drop from closing an account it is not due to AAoA dropping(For FICO models at least, others may be different), it is just due to other factors resulting from the closed account.

Also keep in mind, AAoA for scoring purposes is only takes into account whole years rounded down. So if your AAoA is 4.8 and dropped to 4.6 (Just an example), FICO calculates your AAoA as 4 years in both cases.

[takeshi74]

You can do the math yourself to see the impact.  It's not just AAoA that you need to consider but utilization, etc.  Figure it out both ways and you'll have what you need to make your decision.

[HiLine]

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@b_seeker wrote:

Your AAoA will not be affected by closing accounts until they fall off about 10 years after they are closed.

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There is no guarantee how long closed accounts will be reported...

[b_seeker]

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@HiLine wrote:

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@b_seeker wrote:

Your AAoA will not be affected by closing accounts until they fall off about 10 years after they are closed.

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There is no guarantee how long closed accounts will be reported...

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Of course. -_- Just like most things credit related, it's all a crapshoot.

[jlfce1]

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@takeshi74 wrote:

You can do the math yourself to see the impact.  It's not just AAoA that you need to consider but utilization, etc.  Figure it out both ways and you'll have what you need to make your decision.

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Honestly, if I could calculate it myself, I would; however, I have too many student loan accounts that have been transferred, etc. throughout the years that it's hard for me to average everything correctly, but I do thank you for the suggestion. 

[jlfce1]

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@b_seeker wrote:

Your AAoA will not be affected by closing accounts until they fall off about 10 years after they are closed. AAoA takes into account both open and closed cards so you should keep the Target open cause of no AF. If you see a score drop from closing an account it is not due to AAoA dropping(For FICO models at least, others may be different), it is just due to other factors resulting from the closed account.

Also keep in mind, AAoA for scoring purposes is only takes into account whole years rounded down. So if your AAoA is 4.8 and dropped to 4.6 (Just an example), FICO calculates your AAoA as 4 years in both cases.

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Thank you-I didn't realize it is rounded, that's great to know.

[jlfce1]

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@HiLine wrote:

Have you read this sticky thread yet?

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/td-p/347190

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Thank you. I did see this, I just still couldn't determine if I would be affected.

[jlfce1]

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Agreed that there is no guarantee.  I have <9% Utilization and the two CC's in questions are at zero.  I don't need them so I wasn't sure if it would be best to close them now before I apply for my mortgage in a year. I feel like it's one more thing to keep track of and I don't need the CL's or anything so I just wanted to make sure nothing else would have negatively.  I appreciate all of you for taking the time to respond.