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AAOA?

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Contributor

AAOA?

I have two credit cards that were open about the same time back in 2012. I want to close one of them as it doesn't serve much purpose for me anymore. I was wondering how much of an affect closing one would have even though I have another credit card with the same history as it is the average age of accounts. Will it drop significantly or would the change be minor?

As of March 2016:
Equifax 735
TransUnion 702
Experian 731
Message 1 of 16
15 REPLIES 15
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Valued Contributor

Re: AAOA?

Well if you app for more cards, they will average out all of them and it will most likely drop your AAOA a bit more.  My oldest is Amex and next is VS & Cap One.  And that Cap One has a very low limit of 2k as compared to my other Venture's with 20k a piece on them. I keep it because it's over 10 yrs old.  I'm afraid my AAOA will go down too far.  Wait for other experts to give you advice on this.  Smiley Wink


FICOS: EQ-812 TU-811 EX-818 Goal - 840-850 Across The Board
Total Credit Lines - 506K Gardening....
"I am the master of my fate and the captain of my destiny" Nelson Mandela
Message 2 of 16
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Super Contributor

Re: AAOA?

No effect at all other than UTL if needed

Try the calculator and experiment AAOA

http://seemly.com/aaoa-calculator/

Before you app think...
Have you done your research of the CC?
Does it fit your spending?
Do you have a plan for the bonus w/o going into debt?
Can you afford the AF?
Do you know the cards benefits? Is it worth the HP?
Message 3 of 16
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Frequent Contributor

Re: AAOA?

I no longer use my BoA cash rewards card but keep it open because it is my oldest card.

Just sock drawer it and charge something small like a pack of gum each year.

It's worth it in my opinion just to keep your score/AAoA up.

But it honestly depends on how many CC's you currently have and if you're planning on applying for new ones anytime soon.


FICO 08 EQ: 747 // TU: 761 // EX: 759 // Goal: All 760+ // Age 23.
Building credit since 12/2013 // Gardening since 04/2017.
Hover over my cards to view limits.
Message 4 of 16
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Super Contributor

Re: AAOA?


@TYREX wrote:

I no longer use my BoA cash rewards card but keep it open because it is my oldest card.

Just sock drawer it and charge something small like a pack of gum each year.

It's worth it in my opinion just to keep your score/AAoA up.

But it honestly depends on how many CC's you currently have and if you're planning on applying for new ones anytime soon.


You may want to try to work that Bank of America account to a larger CL. BofA sends out 0% BT offers with a 4% fee regularly. Perhaps not now, but at some point in the future you may decide that looks like a good offer.

High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Message 5 of 16
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Super Contributor

Re: AAOA?

As myJourney points out, closing it will have no effect on your AAoA.  Thre reason why is that closed accounts (in FICO's models) continue to age and they count toward your AAoA just as much as open accounts do.  The slight caveat is that, ten years from now, when the closed account falls off your report, it will of course no longer contribute toward your AAoA.

 

If the account you close is older than all your others by a big stretch, then when it falls off in ten years it will also affect a different factor, which is "age of your oldest account."  So some people like to keep their oldest CC going -- if it is substantially older than your others AND there is no annual fee to it. 

 

Message 6 of 16
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Senior Contributor

Re: AAOA?


@TYREX wrote:

I no longer use my BoA cash rewards card but keep it open because it is my oldest card.

Just sock drawer it and charge something small like a pack of gum each year.

It's worth it in my opinion just to keep your score/AAoA up.

But it honestly depends on how many CC's you currently have and if you're planning on applying for new ones anytime soon.


Closing the card would have no impact on your AAoA.

Message 7 of 16
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Contributor

Re: AAOA?

Thanks for the responses. I see it won't have an immediate affect. I just applied for the BCE to replace the ED (talked to quite a few reps about a product change but all of them said I had offers for other cards but it wasn't possible and that the only card I could product change to is the EDP). My oldest cards are the Freedom and Discover It, so I think I'm just gonna close the IT. It's the card I use the least plus the BCE I was approved for has a higher cl even with all the Discover love.

As of March 2016:
Equifax 735
TransUnion 702
Experian 731
Message 8 of 16
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Regular Contributor

Re: AAOA?


@selena wrote:

Thanks for the responses. I see it won't have an immediate affect. I just applied for the BCE to replace the ED (talked to quite a few reps about a product change but all of them said I had offers for other cards but it wasn't possible and that the only card I could product change to is the EDP). My oldest cards are the Freedom and Discover It, so I think I'm just gonna close the IT. It's the card I use the least plus the BCE I was approved for has a higher cl even with all the Discover love.


Why not just leave it open until Amex closes it themselves? If I could have a 3 year old account with no AF I'd take it. And that wouldn't even be my oldest card. haha What's the CLI compared to the other cards?

Cards: Discover It $7500, Wyndham $5000, Capital One Quicksilver $5000, Shell Mastercard $6000, Citi Double Cash $7000, Sallie Mae $900, Amex BCP $3000, Chase IHG $10,500, BoA BB $1500,

EQ: 8/16/15 CCT 755
EX: 8/27/15 CCT 749
TU: 8/16/15 CCT 782
Message 9 of 16
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Frequent Contributor

Re: AAOA?


@myjourney wrote:

No effect at all other than UTL if needed

Try the calculator and experiment AAOA

http://seemly.com/aaoa-calculator/


Well dang! That only goes to 20 accounts...

Message 10 of 16
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