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Closing my secured card and AAoA - should I or shouldn't I close it?

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CreditSage
Regular Contributor

Closing my secured card and AAoA - should I or shouldn't I close it?

Hi everyone - I have a capital one platinum secured card which only has a $700 limit and has never been upgraded. I am thinking of closing it.

 

Here are my current accounts and AAoA. It looks to me like closing this card will actually improve my AAoA and since the limit is so low ($700) it shouldn't affect my credit limit/utilization that much. I really can't see anydownside to closing it but want to hear what you think.

 

AAoA BEFORE closing it = 3 years 7 months

AAoA AFTER closing it = 3 years 8 months

Credit availability will go from $24,300 to $23,600.

 

Account in question is bolded bellow.

 

Nov-1193Months
May-1463Months
Sep-1547Months
Jul-1637Months
Aug-16

36

Months
Feb-1730Months
Nov-1721Months
Apr-1816Months

 

Thanks in advance!

Current Open: NFCU AMEX $6,800 CL | Chase Freedom $3,800 CL | QS1 $1,300 CL | BankAmericard $24,000 CL (AU) | NFCU SSL $3,000 |
FICO 8 EXP, EQ, TU: 675-715 (depending on Utl.) | AAoA 3 Years 3 Months | AoYA 0 Months

Closed: American Honda Finance Installment $16,000 paid satisfactorily | Capital One Secured $700 paid satisfactorily | Wells Fargo credit card $3,000 paid charge off settled less than full amount (badie 2015) | Bank of America credit card $1,000 paid charge off settled less than full amount (badie 2015)
2 REPLIES 2
BallBounces
Valued Contributor

Re: Closing my secured card and AAoA - should I or shouldn't I close it?

Your Average Age of Accounts includes your closed accounts for as long as they remain reported and reportable prior to exclusion.  For accounts in good standing, that is typically 10 years.  Closing an account in good standing that you are the account owner for will NOT have a negative immediate effect on your Average Age of Accounts (nor your age of oldest account for that matter).

 

 

050719:     
021924:     


FICO 08 scores listed and are stagnated until multiple derogatory items expire over the next two years.
Message 2 of 3
CreditSage
Regular Contributor

Re: Closing my secured card and AAoA - should I or shouldn't I close it?

Oh right, duh, thanks. 

Current Open: NFCU AMEX $6,800 CL | Chase Freedom $3,800 CL | QS1 $1,300 CL | BankAmericard $24,000 CL (AU) | NFCU SSL $3,000 |
FICO 8 EXP, EQ, TU: 675-715 (depending on Utl.) | AAoA 3 Years 3 Months | AoYA 0 Months

Closed: American Honda Finance Installment $16,000 paid satisfactorily | Capital One Secured $700 paid satisfactorily | Wells Fargo credit card $3,000 paid charge off settled less than full amount (badie 2015) | Bank of America credit card $1,000 paid charge off settled less than full amount (badie 2015)
Message 3 of 3
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