Account Closure Question

[Jolo0801]

So, I have some cash and I want to pay off some high balance cc's.

I've had a military star card (store card) since 2009 $5K limit with about $4K balance.

I would like to close these card because I would like to free up room on my consumer credit. (I'd like that $5K on a visa or master card)

However, my question is what does closing the account do for my AAoA?

I heard closing store cards doesn't hurt credit but I don't know how true that is..

[Anonymous]

It will just update the Credit Card to 'Closed by Consumer' and will continue to reflect on your account for 10 years.

[Jolo0801]

So it has no negative affect on credit at all? Include AAoA...Correct

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@Anonymous wrote:

It will just update the Credit Card to 'Closed by Consumer' and will continue to reflect on your account for 10 years.

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[Anonymous]

Correct. for AAoA

Now as always, it may effect your score due to the loss of the credit line, bringing up your utilization if you have other lines of credit with balances.

And if you have more than 3 Credit Cards currently, applying for a new card may actually be a ding on your credit score due to the HP.

[ojefferyo]

It will affect your utilization, the closed card will still be factored into your Fico for the next 10 years or so. 

[Anonymous]

If it's not costing you a fee, IMO you should keep it open and never close it. My oldest card is a store from 1994 and it has helped tremendously my AAoA when I opened a bunch of new cards recently. I use mine a couple of times a year for a small amount and pay in full before the statement cuts.