@srloring13 wrote:Is it better to wait two years before closing an account? I have a few accounts with Credit One, Merrick Bank, and FNBO that I am contemplating closing. The Credit One has reached two years but the other two accounts are one years old. My concern is If I close them before they are at least 24 months will they still be considered r "new accounts" in my overall credit profile.
We used to say not to close any account until they reached 2 years old as they were still considered new by Fico. There is no basis in fact for that per Barry Paperno former My Fico Administrator. I would not close anything prior to it reaching 7 months of age as its well known new credit underwriters consider an account to be new for its first 6 months.
Quote directly from Barry Paperno "There's no 24 month rule having to do with closed and/or new accounts or even any true definition of a new account for that matter. As with all score calculations, there are various thresholds, whether dollars or months or numbers, where the number of points increases or decreases when crossed. For time triggered factors, one threshold could very well be 24 months, just at it could also be 12, 36, 48 months, etc. Not sure why 24 months has caught on in this way, but it might just be that it's a relatively manageable time period to track - and it sort of sounds logical. Other than that, you got me!"
I would close any account (after 7mo) that has an AF and you are no longer using. If you are now able to get unsecured cards there would be no point in paying AF for secured cards or even unsecured cards esp thru lenders like Credit One who charge monthly fees.
