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I have looked around and understood many of the factors for credit score calculation.
The only question I have yet to confirm is, what is the Age of my closed accounts?
IE if I open a card today, and cancel in 11 months. Now that closed account stays on my record for 10 years.
In 5 years, will that account show 5 years of history (thus not hurting my AAoA)
or will it show 1 year of history (1 year of the account being open) indefinitely until it falls off.
I can deal with a temporarity hit to my AAoA if it eventually goes down over time. But a few 1 year accounts that stick with me for 10 years will obviously drag my score into the dirt in that category. And yes I cannot leave this open, because it will be a high annual fee card. I have not yet signed up for it, just trying to understand before I do.
I already know about the Util calculations and oldest accounts and such. This is the only part I am confused about now.
Thanks much
edit: To clarify, I would be closing these accounts with zero balances, and in good standing.
Yes, the age of an account is exactly the same whether it is open or closed.
+1, Stan!
Yes, all accounts in your CR count in your AAoA scoring. However, the CRAs have an unregulated policy of deleting old, closed accounts from their files at a time of around 10 years after account closing. At that time, you might lose the closed account, which will necessarily have an age of over 10 years, Then, it becomes significant.