Do closed CC with good history impact my score?

[Anonymous]

As I'm learning more and more about  my credit score and credit history on my journey to good credit health I've notice something that I'm worried about. On my reports there is a closed CC account from BOA. The account was opened in 1999 in my name by my mother and closed in 2008. The payment history is excellent. She told me she opened the account to build my credit and closed it not knowing that doing so might be harmful? So I have a few questions....

1) Does the credit history of this closed account impact my current score?

2) On my report it states the account is due to stay on record until December 2018. Will my score drop if it is no longer reported?

Any advice would be appreciated

[sarge12]

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@Anonymous wrote:

As I'm learning more and more about  my credit score and credit history on my journey to good credit health I've notice something that I'm worried about. On my reports there is a closed CC account from BOA. The account was opened in 1999 in my name by my mother and closed in 2008. The payment history is excellent. She told me she opened the account to build my credit and closed it not knowing that doing so might be harmful? So I have a few questions....

1) Does the credit history of this closed account impact my current score?

2) On my report it states the account is due to stay on record until December 2018. Will my score drop if it is no longer reported?

Any advice would be appreciated

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A closed credit card will stay on the report for 10 years, and will be figured into AAoA so will be slightly beneficial. Since it is closed it will not figure into utilization, so closing a card will usually have a negative affect on your total credit limits available and credit utilization.

[Anonymous]

Thanks for your respons!!

I was thinking about being added to her Sears card as an AU to increase my AAoA. She's had it for 41 years and has excellent payment history. She's currently carrying about $3000.00 balance on 7000.00 CL. Do you think that would help me? My current AAoA is 8 months....

[sarge12]

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@Anonymous wrote:

Thanks for your respons!!

I was thinking about being added to her Sears card as an AU to increase my AAoA. She's had it for 41 years and has excellent payment history. She's currently carrying about $3000.00 balance on 7000.00 CL. Do you think that would help me? My current AAoA is 8 months....

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It may very well help, but some creditors discount AU data...if it has always had a good credit history on that card it certainly should not harm your credit.

[HeavenOhio]

I'd feel better about the Sears card if it had much lower utilization.

[EW800]

I agree with HO. The Utilization of almost 50% on the Sears card would concern me. Is it possible she will be getting that down significantly in the near future?

[Anonymous]

She's told me that she plans on reducing the balance soon. Would the 41 years fo good credit history help me by increasing  my AA0A?

[DollyLama]

You need to look at all the factors in score besides AAoA. 

In your other post, your credit is 1200/6000 which is about 20% utilization, if your mother added you now with her balance, your trade off will take you to about 32% utilization.  IMO utilization raise is going to impact your score way more than getting your AAoA. As you garden and let your cards age, the AAoA will rise. If raising your AAoA is your only concern, does your Mother have a open card with a zero balance that has been open for 10, 20+ years? That would be beneficial as a AU.

[Anonymous]

Next year when that closed account falls off your report in December 2018, you'll lose that 19 year old account being factored into your AAoA.  If you have a lot of other accounts on your credit report (open and closed) this may not impact you much, perhaps a 1 year AAoA reduction at most.  If you only have a couple of other accounts on your credit report the AAoA reduction could be more significant (several years) which could adversely impact your score a bit.