Why wait 1 or 2 years to close accounts?

[wmarat]

My assumptions/speculations are

1. You fully recover from the hit you took opening new account.

2. Keeping account for 2 years makes your report look "prettier"

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@Anonymous wrote:
Why do people recommend waiting for 1 or 2 years? The accounts will be the same age fico-wise wether they are opened or closed. Whats the theory behind this? Average age won't change open or closed.

Message Edited by hobojon on 01-29-2009 10:56 PM

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[GregB]

I think the reason that you want the unused accounts to stay open is so that your ratio of accounts with balances to open accounts is less. There are at least some buckets for that even if it is just one at 50%.

I have had huge score drops and increases when my accounts with balances passes 50% of the number of open accounts.

For example, my current report lists 25 open accounts. If I have balances showing on 12 of them, I am below 50%. If I have a balance on a 13th account, I get a big score drop.

This becomes more important for me due to the delay in reporting balances. I have two accounts reporting balances right now that were paid to zero last month and no new charges have been made.

If you aren't paying a fee to keep an account open, I can't see any reason you would want to have it removed.

[oracles]

Laz and LilMirth, excellent answers

Kudos to both of you.

Remember OP, it is not just the fico score that lenders look at. They reveiw your report and history.

In this situation, it would not look good on your report.

Example:

An apple could look great on the outside but if it is rotten on the inside, you would not eat it.

Score may look good but if the report has some baddies, you could be denied 

[Anonymous]

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@Anonymous wrote:

The FCRA states you can dispute any inaccurate information. It does not specify that the only way it can be inaccurate is if it is "opened fraudulently or by someone other than yourself". The inquiries had the wrong date. They were all dated for the day after I actually applied. I disputed them, they could have fixed the date, they decided to delete them instead. I can find many other similar inaccuracies in the accounts if I try.

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I'm sorry, but... you have to be kidding me.

The FCRA exists for a reason, and... that is SO not it.

[Anonymous]

The FCRA exists for me to utilize as I see fit. They should have been more specific in their definitions of the act. You don't get to decide how it is used. Have another glass of wine and go check for an Amex CLD again.

[fused]

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hobojon wrote:

The FCRA exists for me to utilize as I see fit. They should have been more specific in their definitions of the act. You don't get to decide how it is used. Have another glass of wine and go check for an Amex CLD again.

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Warning!

Please remember to be friendly and supportive when posting. Thank You!

--fused, myfico moderator

[haulingthescoreup]

The useful thing about keeping (excuse me) crappy accounts open is that every month, they put another month of clean history on your reports. Even if it's a total dud of an account, if it reports to all three, and if it's clean, or recently clean, it is an ally in your corner.

If you have negatives in your past, this is called "diluting bad history with good." There's a reason that I have so many open accounts.