AAoA & closing CCs

[bichonmom]

When you close a CC, I know that it stays on your CR for 10 years. So, let's say you have 4 CCs, and you got them all within a few months of each other. And, you cancel 2 of the CCs. Those 2 CCs will stay on your rept for 10 yrs. So, in 10 yrs., will your AAoA be hurt when those fall off, if you still have 2 of the 4 original cards that are 10 yrs. old?

I'm thinking that if there are still 2 10-yr old cards,then your AAoA won't be affected by the loss of the other 2, but I'm still trying to undertand how AAoA works.

(I hope this is clear -- if not, let me know and I'll rephrase it.)

Thanks!

[Anonymous]

Okay, I hope this is good math. 

if you have four cards that are brand new today, and leave them open; in one year your AAofA will be 1 year.  In ten years, your AAofA will be 10 years (Four accounts at 10 years each = 10 years AAofA).  In ten years plus one day (give or take) your AAofA will be 10 years.  (Four accounts at 10 years each = 10 years AAofA).

If you have four cards that are brand new today, and close two now; in one year your AAofA will be 1 year.  In ten years, your AAofA will be 10 years (Four accounts at 10 years each = 10 years AAofA).  In ten years plus one day (give or take) your AAofA will be 10 years (Two accounts at 10 years each = 10 years AAofA).

Now, it'll get a little more interesting as real life enters the picture, and you open other accounts along the way.

At 11 years, if you've kept four open and now open a new account, your AAofA will be something like 8.8 years

At 11 years, if you've closed two now and left two open and now open a new account, your AAofA will be something like 7.3 years.

I sincerely hope someone checks my math - it could be SO far off.  I'm doing math (in my head no less), talking on the phone & watching TV and eating yummy coleslaw all at once.  Now I'm scared to hit the "post" button.  Oh, well - here goes.  Someone will whop me upside the head if my math is off.

[bichonmom]

Thanks, BeamMEup.

So, if I'm reading your post right, as long as I will still have 2 CCs that are will be10 yrs old in the future, closing the other two shouldn't make a difference.

I have 2 Cap Ones that I can't wait to get rid of. If I had known when I app'd that I'd only get $300 and $500 CLs, not to mention the fact that they won't give CLIs, I would not have app'd for them. Fortunately, I also got 2 other CCs around the same time period. So, I'd like to close my Cap Ones asap, but just don't want to shoot myself in the foot by doing so. It looks to me that there is no value (beyond poss util) to keeping them, unless I'm missing something (which I might be, because this credit stuff is new to me, and doesn't always follow my logic.)

[Anonymous]

If it were me, (and it's not), I wouldn't hesitate to close two cards I had no desire to keep open if my other cards kept me in FICO's good graces. 

I don't remember what your other cards are (or even if you've posted that); but as long as you have at least one bank card in that mix, my personal feeling is to close the ones you don't like.  But there are lots of folks that would keep them open.  I just don't like juggling cards that are not serving me well enough to be worth the effort.

I was in a situation very similar to yours two years ago.  I opened a few too many cards, all in a very close time frame, and I closed the ones I didn't want to keep open.  I now have four cards and am very happy with that number.  I think I would even be happy with three of my four and wouldn't feel too badly about closing one of those.  IMO, at this point, it becomes a personal preference type of thing.  Then again, I've become a fan of doing things slowly.  I would possibly close one and wait several months and see if I still wanted to close the other. 

[Jstic]

If the account is closed, is it's age still used in the calculation for AAoA? I thought once the account is closed, the only accounts that are used to figure AAoA are the remaining open accounts.

[bichonmom]

It stays on your CR for 10 yrs from the date it was closed, so it continues to help your AAoA until it falls off of CR. It doesn't help your util, though, once it's closed.

[bichonmom]

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@Anonymous wrote:

If it were me, (and it's not), I wouldn't hesitate to close two cards I had no desire to keep open if my other cards kept me in FICO's good graces. 

I don't remember what your other cards are (or even if you've posted that); but as long as you have at least one bank card in that mix, my personal feeling is to close the ones you don't like.  But there are lots of folks that would keep them open.  I just don't like juggling cards that are not serving me well enough to be worth the effort.

I was in a situation very similar to yours two years ago.  I opened a few too many cards, all in a very close time frame, and I closed the ones I didn't want to keep open.  I now have four cards and am very happy with that number.  I think I would even be happy with three of my four and wouldn't feel too badly about closing one of those.  IMO, at this point, it becomes a personal preference type of thing.  Then again, I've become a fan of doing things slowly.  I would possibly close one and wait several months and see if I still wanted to close the other. 

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I feel the same way. I'd rather close them than "sock drawer" them -- unless there is some real advantage for me in doing that.

I have one new CU visa and Old Navy... plus the 2 Cap Ones. I got the Old Navy the same day as my first Cap One, so it isn't my oldest card. I'd really like to get to the point where I can get an Amex again and hopefully backdate. That would do wonders for my AAoA, which is *really* low right now.

[Anonymous]

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@bichonmom wrote:

I feel the same way. I'd rather close them than "sock drawer" them -- unless there is some real advantage for me in doing that.

I have one new CU visa and Old Navy... plus the 2 Cap Ones. I got the Old Navy the same day as my first Cap One, so it isn't my oldest card. I'd really like to get to the point where I can get an Amex again and hopefully backdate. That would do wonders for my AAoA, which is *really* low right now.

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Do you have any other cards?  If not, the Cap One is playing an important role - it fills the need for a bank/national CC.  Depending on the scoring model being used, CU's sometimes count.  Just to keep everyone in every FICO scoring model happy, I would keep a bank/national CC open.

[bichonmom]

Wow. I didn't realize that. I thought as long as it was MC/Visa, it counted. Well, I guess I'm stuck with at least one of the Cap Ones long-term, then.

I was hoping to avoid the B of A/Chase/Citi/Discover cards, as I had some them previoiusly and could be blacklisted; they're harder to qualify for; and, in general, I've heard some not-so-great things about them (though, I know some people are happy w/them.)

Are there any other banks that would count? Though, even if I qualify for one of them next year, I'll still be stuck sock-drawering my Cap One for age. The smaller CL doesn't have an AF, but I have read here about CCs adding an AF later on, which is a concern. I'd hate to depend on it for my AAoA, and end up stuck paying an AF in the future so my score doesn't drop.