No credit card required
Browse credit cards from a variety of issuers to see if there's a better card for you.
Credit Karma has me confused.
I understand that its ok to close credit cards, but I'm just curious. Do the closed credit cards stop "ageing"?
Let me claify, if a card for example is 1 years old, and I close it. How will the age be calculated 5 years from now? 1 years old, or 6 years old?
I have some cards I want to chop:
First Premier MasterCard
First National Visa
HSBC/Capital One Discover
My 2nd Capital One MasterCard (they won't let me combine trade lines ).
Yes, they are all paid off.
@Poki wrote:Credit Karma has me confused.
I understand that its ok to close credit cards, but I'm just curious. Do the closed credit cards stop "ageing"?
Let me claify, if a card for example is 1 years old, and I close it. How will the age be calculated 5 years from now? 1 years old, or 6 years old?
I have some cards I want to chop:
First Premier MasterCard
First National Visa
HSBC/Capital One Discover
My 2nd Capital One MasterCard (they won't let me combine trade lines ).
Yes, they are all paid off.
It will show as paid as agreed for 10 years after which time it will drop off your CR's
For clarification, CK does not include closed accounts in their AAoA.
FICO includes all OC accounts, open, closed, good or bad.
Here's what I understand:
FICO considers a few things with respect to the AGE of your accounts. In this section of their scoring, they consider the AAoA; your oldest OPEN tradeline (revolving); and, length of credit
The AAoA takes into account open AND closed accounts. FICO tallies up all tradelines (since they were open) in MONTHS, then divides by 12. Sadly, if your AAoA is 4 years and 11 months, FICO rounds DOWN and reports AAoA as 4 years. And, FYI, if one account is 1 year and 11 months old, it is calculated as ONE year. And, fyi, a BRAND SPANKING NEW acount, 1 month old is calculated as ONE year. So, anywhere from ONE month to ONE year and 11 months is seen by FICO as only ONE YEAR.
But, to answer your specific question, AAoA includes closed AND open accounts. Just keep in mind, in this section of scoring, your OLDEST/OPEN revolving account is considered (i.e., factored into the scoring), also. That's why you need to close accounts with care.
Maybe an EXPERT here should elaborate on what I wrote. I think I am correct, thouh.
@Poki wrote:Credit Karma has me confused.
I understand that its ok to close credit cards, but I'm just curious. Do the closed credit cards stop "ageing"?
Let me claify, if a card for example is 1 years old, and I close it. How will the age be calculated 5 years from now? 1 years old, or 6 years old?
To directly answer your question:
All account are calculated in months from the open date on your credit report until the current month. They do not stop "ageing" because AAoA is always calculated this way, whether the accounts are open or closed.
@pizzadude wrote:
I recommend that you ignore CK scores, AAoA, and their scoring advice.
I'm going to give this one a big +1. CK is good for monitoring new accounts, Inqs, etc. But worthless when it comes to scores. Their scoring method is way off par, plus you won't see a creditor denying or granting you credit due to your CK score.
@I_SUFFER_FROM_FICO_ENVY wrote:Here's what I understand:
FICO considers a few things with respect to the AGE of your accounts. In this section of their scoring, they consider the AAoA; your oldest OPEN tradeline (revolving); and, length of credit
The AAoA takes into account open AND closed accounts. FICO tallies up all tradelines (since they were open) in MONTHS, then divides by 12. Sadly, if your AAoA is 4 years and 11 months, FICO rounds DOWN and reports AAoA as 4 years. And, FYI, if one account is 1 year and 11 months old, it is calculated as ONE year. And, fyi, a BRAND SPANKING NEW acount, 1 month old is calculated as ONE year. So, anywhere from ONE month to ONE year and 11 months is seen by FICO as only ONE YEAR.
But, to answer your specific question, AAoA includes closed AND open accounts. Just keep in mind, in this section of scoring, your OLDEST/OPEN revolving account is considered (i.e., factored into the scoring), also. That's why you need to close accounts with care.
Maybe an EXPERT here should elaborate on what I wrote. I think I am correct, thouh.
As DaveSignal indicated, the length of credit history includes your oldest account from the open date, regardless of whether or not it is opened or closed. If your oldest is closed, then that's your length of credit history.
FICO also scores your oldest overall account, oldest revolving, and oldest installment. It doesn't matter if they are opened or closed.
thnks
Never said anything about CK's listed score
I already have the follow up letters typed out, just need to call First Premier and First National Visa this Monday. I will keep the Discover and Capt1 for now, since they don't charge an annual fee.