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Should I close recently(within past 2 years) opened CC

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abzze
Valued Member

Should I close recently(within past 2 years) opened CC

I have avg age of credit account ~6 years.

3 Cards ~11 years.

A few ~5 years. 

and 2 ~1.5 years.

 

If I close the ones around 1.5 years old, it will decrease my available credit by less than 5%.

But it will increase avg age of open accounts.

Will it help my score increase?

Message 1 of 6
5 REPLIES 5
Remedios
Credit Mentor

Re: Should I close recently(within past 2 years) opened CC


@abzze wrote:

I have avg age of credit account ~6 years.

3 Cards ~11 years.

A few ~5 years. 

and 2 ~1.5 years.

 

If I close the ones around 1.5 years old, it will decrease my available credit by less than 5%.

But it will increase avg age of open accounts.

Will it help my score increase?


It will not increase your AAoA nor will it decrease it. Closed accounts can stay on your CR up to 10 years after closing and contribute to age entire time

If there is a scoring change, it will be due to utilization changes. Increase in utilization may lead to scoring decrease if threshold is crossed

That's solved easily by paying down the balances, though. 

Message 2 of 6
abzze
Valued Member

Re: Should I close recently(within past 2 years) opened CC

I agree. It won't change AAoA.
But I see all of them show AA o "open" accounts. By all of them I mean CK and CS.
Message 3 of 6
Remedios
Credit Mentor

Re: Should I close recently(within past 2 years) opened CC


@abzze wrote:
I agree. It won't change AAoA.
But I see all of them show AA o "open" accounts. By all of them I mean CK and CS.

 

That's just CK user interface and it's misleading. Ignore it. It's only good for monitoring your reports. 

Besides, vantage scores are typically not used in lending, so dont sweat anything you see there other than account details 

 

Message 4 of 6
SouthJamaica
Mega Contributor

Re: Should I close recently(within past 2 years) opened CC


@abzze wrote:

I have avg age of credit account ~6 years.

3 Cards ~11 years.

A few ~5 years. 

and 2 ~1.5 years.

 

If I close the ones around 1.5 years old, it will decrease my available credit by less than 5%.

But it will increase avg age of open accounts.

Will it help my score increase?


No, closing them will not affect your average age of accounts.


Total revolving limits 741200 (620700 reporting) FICO 8: EQ 701 TU 704 EX 685

Message 5 of 6
Anonymous
Not applicable

Re: Should I close recently(within past 2 years) opened CC


@abzze wrote:

But it will increase avg age of open accounts.

Will it help my score increase?


No it won't increase (or decrease) your scores.

 

Average age of open accounts is not a factor in Fico scoring.  Average age of accounts (AAoA) is and that factor is determined by using both your open and closed accounts, thus no change to it when you close them.

Message 6 of 6
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