Do closed accounts still impact your AAoAs?

[omgitsMatt]

I've been reading a strategy where others would open a Capital One account and then merge it with another 6 months later when the option became available.

Essentially building a high SL CC over a period of time.

When the closed account is closed and reports as closed to the bureaus, it'll sit there for 7 to 10 years.

If a card is closed at 6 months old, does it continue to age and pull down your AAoAs?

[Remedios]

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@omgitsMatt wrote:
I've been reading a strategy where others would open a Capital One account and then merge it with another 6 months later when the option became available.

Essentially building a high SL CC over a period of time.

When the closed account is closed and reports as closed to the bureaus, it'll sit there for 7 to 10 years.

If a card is closed at 6 months old, does it continue to age and pull down your AAoAs?

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What do you mean by "pull down"? 

Closed card continues to contribute to AAoA for up to 10 years. 

[omgitsMatt]

"Pull down" as in lowering the mean average of a persons AAoAs.

A six month old account opened purely to consolidate into another CC seems like an interesting idea, but that seems like a serious con though too.

[Remedios]

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@omgitsMatt wrote:
"Pull down" as in lowering the mean average of a persons AAoAs.

A six month old account opened purely to consolidate into another CC seems like an interesting idea, but that seems like a serious con though too.

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 "Lowering" would have happened at the time account was opened. After that, the account is contributing to AAoA

[omgitsMatt]

I see,

If you have 3 accounts, (5yr + 5yr + 5yr) / 3 = 5yr giving you a mean AAoAs at 5 years then open a new accoun and wait six months then close that new account...

That would then give you (5.5yr + 5.5yr + 5.5yr + .5yr) / 4 = 4.25yrs

That .5yr, even closed, still influences a credit profiles AAoAs.

Do I understand better now?

Do closed mortgages, auto loans & personal loans behave the same way when closed?

[Remedios]

All TLs behave that way

Opening accounts just to close accounts is not a greatest idea. 

[omgitsMatt]

Follow up question,

When renoving yourself from an account that you're an AU on, does that still influence a cresit profile concerning the AAoA?

[omgitsMatt]

Seemed like not a great idea to me too.

People do it though, especially when opening Capital One accounts to simply merge accounts six months later to build one CC with a high SL.

Is a high SL CC worth that hassle? I can't figure out the pros for it other than having a single account with a high SL

[Anonymous]

That .5yr account will continue to age until it falls up to 10 years later and will contribute to AAoA during that time. 

Obviously it’s still a decrease temporarily or a decrease from where it would have gotten without that account but AAoA is only a minor scoring factor really. 

People combine accounts so that they can use more of their limit without hitting a utilization wall. 

[Anonymous]

Better off trying a different lender.