Closing old cards, AAoA, Scoring help

emily15 · ‎08-06-2017

Hello everyone,

Listed below are my three oldest accounts, I am embarrassed to say that on a whim I closed my oldest card, which was a capital one secured card.

I should have closed my credit one card because that annual fee is RIDICULOUS. but I had a $200 deposit sitting with capital one and a small annual fee as well. However, I would still like to close the credit one account.

I feel like I have made a huge mistake and I am not really sure what I am even asking here but I guess looking for some clarification on the damage I may have done and some advice on what to do next.

I have many more accounts than listed below, but they are newer than 2 years and 4 months. My current AAoA is 2 years 7 months. (that was from CK including the capital one secured which was the oldest.

Capital One Bank Usa Na

5 yrs, 4 mos

Credit One Bank

3 yrs, 9 mos

Capital One Bank Usa Na

2 yrs, 4 mos

I know that closed accounts continue to age for 10 years.. Should I go ahead and close the credit one (my second oldest) account as well? Should I open any new cards? Should I open new cards BEFORE closing any more accounts?

Thank you in advance.

Anonymous · ‎08-06-2017

@emily15 wrote:

I have many more accounts than listed below....

Should I go ahead and close the credit one (my second oldest) account as well? Should I open any new cards? Should I open new cards BEFORE closing any more accounts?

Thank you in advance.

You mention having many more accounts. These could be all closed accounts or installment accounts. We'll need to know how many open cards you have right now to answer your question.

If you now have exactly two open cards, then opening more cards may make sense. If you already have half a dozen cards, there's no need to.

Any cards you close will likely stay on your report for the next ten years (not certainly -- but it is fairly likely). Since FICO includes closed accounts in its age-related factors, your AAoA and also your "Age of Oldest Account" should not be harmed at all as long as those closed accounts remain on your reports.

emily15 · ‎08-06-2017

I have 21 total accounts which include both open and closed. I don't need any new cards so I most likely won't open another, although a BT offer would be nice..

I'm guessing there would be a small hit in 10 years ? Can I closed my next oldest which is the credit one? Should I space that closure out 6 months?

Anonymous · ‎08-06-2017

The reason you want to close the Credit One account is because of an annual fee.... is that right?

If so, I would close the C1 a couple months before the annual fee is next due. I would most certainly not pay another annual fee for it.

Your Age of Oldest Account will drop by three years when the two closed cards fall off. That's significant but still pretty minor in the big scheme of things. Keeping the C1 open won't change that event by much.

emily15 · ‎08-06-2017

Credit one charges the annual fee on a monthly basis, and they won't budge on that (I've tried). I should've kept capital one until the next annual fee hits which would've been in April but what's done is done.
Thank you for your reply!!