new account closed within 30 days - how is it reported?

[Anonymous]

Have searched everywhere for this info and couldn't find anything.  Are there any special reporting provisions for a new account closed within 30 days (I'm thinkin' credit cards here).

-Jono

[Anonymous]

Closed by you or the credit grantor?

[Anonymous]

There are no special provisions for the reporting of an account closed in any time frame.  Generally, if you apply for an account and are approved, it will report.  When it is closed, it will continue to report, but will report as closed, even if it's for a credit card you never activated or a line of credit you never accessed.

[Geordi]

---

@Anonymous wrote:

There are no special provisions for the reporting of an account closed in any time frame.  Generally, if you apply for an account and are approved, it will report.  When it is closed, it will continue to report, but will report as closed, even if it's for a credit card you never activated or a line of credit you never accessed.

---

I completely agree!!!!

Plus you will get dinged for a new tradeline.  Exactly how many points you will lose will depend on how this new tradeline affects your average age of all of your accounts.

GL

[Anonymous]

So if you apply for a new card, get it, decide you don't like it and close it out within 30 days...you still get a tradeline reporting as 1 month old...for the next 10 years?

Yeah, I can see how that would RUIN the average age of your accounts.

-Jono

[Anonymous]

---

jsbach1982 wrote:

So if you apply for a new card, get it, decide you don't like it and close it out within 30 days...you still get a tradeline reporting as 1 month old...for the next 10 years?

Yeah, I can see how that would RUIN the average age of your accounts.

-Jono

---

For this reason, this is why one should thoroughly think through the decision to apply for credit before doing so.

[Anonymous]

---

jsbach1982 wrote:

So if you apply for a new card, get it, decide you don't like it and close it out within 30 days...you still get a tradeline reporting as 1 month old...for the next 10 years?

Yeah, I can see how that would RUIN the average age of your accounts.

---

No, not exactly.  Your closed tradeline will continue to age for as long as it continues to report.  It doesn't remain one month old for that whole period.

However, you cannot UNDO the effect of reaging your file due to the new account just by closing it, even if you only kept it open for ten days or so or never activated the card, for example.

[Anonymous]

Wait...so for closed accounts, FICO doesn't look at how long the account was actually open, it just looks at how much time has passed since the account was first opened?

In other words, the formula isn't (date closed - date opened), it's actually (today's date - date opened)....?

So a closed account ages just the same as an open account?  (Of course it stops aging when it falls off your report.)

Very interesting....

-Jono

[llecs]

---

jsbach1982 wrote:

Wait...so for closed accounts, FICO doesn't look at how long the account was actually open, it just looks at how much time has passed since the account was first opened?

In other words, the formula isn't (date closed - date opened), it's actually (today's date - date opened)....?

So a closed account ages just the same as an open account?  (Of course it stops aging when it falls off your report.)

Very interesting....

-Jono

---

Right. FICO reads from the date it was opened to today. It'll keep reading that so as long as the closed TL continues to report (if a good acct, 10 yrs from the date of closure).

Open or closed, FICO reads the age the same.

[Anonymous]

---

jsbach1982 wrote:

Wait...so for closed accounts, FICO doesn't look at how long the account was actually open, it just looks at how much time has passed since the account was first opened?

In other words, the formula isn't (date closed - date opened), it's actually (today's date - date opened)....?

So a closed account ages just the same as an open account?  (Of course it stops aging when it falls off your report.)

Very interesting....

-Jono

---

Yep, you got it.