Closed Account Removed, Took a 18 Point Drop

[Time2letgo]

My oldest account which I closed over ten years ago was just removed from all three bureaus. For months I kept wondering how this would have affected my score when it finally happened, as I knew it was on the horizon. Resulted in a eighteen point decrease across the board. If I knew then, what I know now I would have kept it open since it was the oldest account.

[stw715]

What’s your next oldest account and how old was the removed account?

[Thomas_Thumb]

Yes - details would be useful.

1) Before/after score on each of the three CRAs, if available

2) Age of oldest account on file before/after drop off.

3) AAOA before/after drop off.

[Time2letgo]

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@Thomas_Thumb wrote:

Yes - details would be useful.

1) Before/after score on each of the three CRAs, if available

2) Age of oldest account on file before/after drop off.

3) AAOA before/after drop off.

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  These are the scores and before & after results.       

                               EQ             TU             EX

Scores                  751           750            749

                             733            732            729

AAoA                  3y 8m      3y 4m       3y 2m

                             3y 5m      3y 1m      3y 0m    

AoOA                23y 4m     23y 4m     23y 4m

                          20y 4m     19y 1m     20y 2m 

[Anonymous]

What is your AOYA? Do you have any derogs? With 20 years of history your score should be higher if you're clean.

[stw715]

Assume I read it correctly. Seemingly rather large scoring movement for such minor reduction in age of credit.

[Time2letgo]

Clean reports, nothing negative but most of my open accounts are fairly new. Had BK in 2005 and didn't start rebuilding until 2013. So there were only a couple accounts that were clean and remained on reports post BK. My scores have been in the ranges of 750s - 760s in the past year, except for when I do app sprees and take a hit for the inquiries and new accounts reporting. There were no other changes reported this month except for removal of the oldest account.

[JVille]

BK and App Sprees 🙄

[Thomas_Thumb]

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@Time2letgo wrote:

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@Thomas_Thumb

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  These are the scores and before & after results.       

                               EQ             TU             EX

Scores                  751           750            749

                             733            732            729

AAoA                  3y 8m      3y 4m       3y 2m

                             3y 5m      3y 1m      3y 0m    

AoOA                23y 4m     23y 4m     23y 4m

                          20y 4m     19y 1m     20y 2m

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Those changes in age are insignificant and don't account for the score change. The 18 point drop is typical for the penalty associated with: "no recent activity on revolving accounts". Charge cards and, in many cases, AU cards don't count toward revolving activity.

Your score drop is also typical for a spike in aggregate revolving utilization. For example, going from 6% to 11% which crosses the 9% threshold. Another utilization example would be increasing highest individual card utilization to 55% from 20% which crosses two thresholds:  29% and 49%.

Paying off an only loan or refinancing a loan that spikes installment B/L could also produce a drop of this magnitude.

[SouthJamaica]

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@Time2letgo wrote:

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@Thomas_Thumb wrote:

Yes - details would be useful.

1) Before/after score on each of the three CRAs, if available

2) Age of oldest account on file before/after drop off.

3) AAOA before/after drop off.

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  These are the scores and before & after results.       

                               EQ             TU             EX

Scores                  751           750            749

                             733            732            729

AAoA                  3y 8m      3y 4m       3y 2m

                             3y 5m      3y 1m      3y 0m    

AoOA                23y 4m     23y 4m     23y 4m

                          20y 4m     19y 1m     20y 2m 

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Wow, that's a lot of points to lose for such a trivial difference.  Sorry.