Closing out a Secured Card - Will it impact AAoA or similar metrics?

[ReGuy71]

I have the cards listed in my signature block below. After adding the Langley FCU unsecured Visa recently, I am hoping to apply for AMEX the first week of Sep. Last time I looked over a month ago, I prequalified for all of AE's cards. No open collections, only charge offs (2 Cap 1's, Disc and 2 PenFed's) in 2018 that I paid in full in July 2020. My AZEO utilization generally sits between 1-3%. I am considering closing my Self Visa secured with $2k. I've had it the longest but no rewards (or even an unsecured increase) or possibility of it ever graduating to anything. I would rather close it and use the money for other purposes or open an account with TD Bank (secured card) or Citi (although even the secured is tough). Would closing the account impact my AAoA or other related metrics? My AAoA on EXP is 3 years and over 4.5 years on EQ. TU is just shy of 3 years but unless I try for a Citi card, most other lenders like AMEX, TD, FNBO will pull EXP, so my focus is on the impact on my scoring on EX if I close out Self. Oddly enough my EQ9 is 742 because of an old account closed in 2012 that's still on there. I think that scoring helped me get the Langley Visa recently. Unfortuantely not many other lenders utilize EQ9. Thoughts on closing out Self Visa? 

[FireMedic1]

Not all lenders use FICO9. Many use good ole FICO 8 bankcard or another version. You'll want to stay at a min of 3 cards. Dont go below that. Now AMEX will have a problem with 3 CO's. Your AAoA will be fine unless you add more accounts. If could list out your FICO 8's on all 3 and see where your at. Theres a reason why secured is the only way at this moment you can apply with. Sounds like some more rebuilding needs to happen before you hit the big league. We'll help you. Just need more facts.

[SouthJamaica]

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@ReGuy71 wrote:

I have the cards listed in my signature block below. After adding the Langley FCU unsecured Visa recently, I am hoping to apply for AMEX the first week of Sep. Last time I looked over a month ago, I prequalified for all of AE's cards. No open collections, only charge offs (2 Cap 1's, Disc and 2 PenFed's) in 2018 that I paid in full in July 2020. My AZEO utilization generally sits between 1-3%. I am considering closing my Self Visa secured with $2k. I've had it the longest but no rewards (or even an unsecured increase) or possibility of it ever graduating to anything. I would rather close it and use the money for other purposes or open an account with TD Bank (secured card) or Citi (although even the secured is tough). Would closing the account impact my AAoA or other related metrics? My AAoA on EXP is 3 years and over 4.5 years on EQ. TU is just shy of 3 years but unless I try for a Citi card, most other lenders like AMEX, TD, FNBO will pull EXP, so my focus is on the impact on my scoring on EX if I close out Self. Oddly enough my EQ9 is 742 because of an old account closed in 2012 that's still on there. I think that scoring helped me get the Langley Visa recently. Unfortuantely not many other lenders utilize EQ9. Thoughts on closing out Self Visa? 

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No, closing it would not hurt any of your aging metrics. It will continue to be factored into your AAoA and AoOA until it's dropped as a closed account in your reports, which is likely to be many years down the road.

On the other hand, applying for new cards to replace it will indeed damage your scores.

[ReGuy71]

Thank you for the feedback! My card list and FICO 8's are in my signature block. Please let me know if you can't see them. Including the Self Card, I now have 5 revolver accounts (USB Secured, Apple Card, LangleyFCU) and also a Grain account. I also have the Credit Strong installment loan still active till year end. Re: AMEX, I have seen a lot of people get approved for AMEX with scores under 700 and with derogs. I'm at 704 (EX) and am also a user on a business AMEX (Plum card) now for over 2.5 years. I also only have 3 inquiries on EXP, two of which will be over a year at the end of August 2021. That might nudge my score up a few points as well. Reported utilization is always under 3% monthly and while I do use all of my cards aggressively, I pay them off at month end and follow AZEO. I'm hoping the combo of all of this helps when I apply. Last time I checked, they prequalified me for all of their cards; I would be happy with a Gold and a Delta Plat. I'm only going to apply first week of Sep if I check their Prequal page and it comes back with most or all of the cards. Happy to report back in Sep with any results.