closing old cc accounts.

[Anonymous]

Hello I was wondering if I should close down 3 old accounts. 2 years ago my credit was horrible so I got 2 first premiere cards. 300 limits and another card with a 125 limit. Credit went from the 400's to the mid 500s, and then a fingerhut and then a Merrick Card followed by 11 other cards. Now I have a chase, cap 1, and barclays. My utilization is under 10%. 13 of my cards are really new less than 6 months. The 3 crappy ones are 2 yrs. Should I close those 3 horrible cards? Credit now in mid 600's and slowly gone up. If i close them it will make my avg limits better, but will it decrease my avg age.

[RobertEG]

Lowering your average credit limit is not a scoring parameter, it is you total credit limit that counts, divided into your total balance.

You wont improve your % util by closing a card that is at 0 balance, you will lose its credit limit in the denominator of your % util.

Closing a credit card does not result in its exclusion from your average age of accounts calculation.

However, closing does run the risk that the creditor could decide to totally cancel the account, at which time it would be removed from your AAoA calculation.

[coldnmn]

The only affect closing them would possibly raise utilization.  They will report as a positive trade line even closed for 10 years. In my opinion close them they served their purpose. Congrats on your credit journey!

[takeshi74]

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@Anonymous wrote:
Hello I was wondering if I should close down 3 old accounts. 

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Your call to make.  Use the info in this thread, linked in the Helpful Threads sticky in the Credit Cards subforum as well as your needs/wants to decide.

http://ficoforums.myfico.com/t5/Credit-Cards/Closing-Credit-Cards/m-p/347190?jump=true

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@Anonymous wrote:
If i close them it will make my avg limits better, but will it decrease my avg age.

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As stated above and in the Closing Credit Cards thread it's not the average limit, it's utilization that matters and closing will not impact AAoA.