Effect of closing 20+ yr old credit card account

[Anonymous]

Wanted to find out from those in the know, the effect of closing an aged card in good standing. I have an old Capital One rewards card that began its life back in 1994 as a secured credit card. As credit improved, it graduated to a normal credit card, and is my oldest active account...which I know is good for my score. But even after all this time, and with FICO scores in the 800's and total CC utilization at < 2%, I can't get them to raise the CL more than an additional $750, for a total of $2900. In addition, they keep sending me 0%/12-month offers that I might be inclined to take advantage of, but not with this low CL. So I'm ready to cut ties with this card (I have no other Capital One accounts). With the card playing such a big part in my average age of accounts, how big of a factor is it likely to be in my FICO if I close it? I'm not worried about it changing my utilization, it's a drop in the bucket of my total CL. Thanks in advance for any help.

[Anonymous]

If you decide to close it, it'll stop aging and will stay on your reports for 10 years, then will fall off and your new AAoA will be calculated without it.

[kdm31091]

Since it's not going to harm your utilization, you will probably see little to no issue from closing it in the short term. Long term, 10 years  from now, it may hurt your AAOA slightly when it falls off, but it sounds like it's a card that it's time to move on from.

[Thomas_Thumb]

---

@Anonymous wrote:

If you decide to close it, it'll stop aging and will stay on your reports for 10 years, then will fall off and your new AAoA will be calculated without it.

---

Closed accounts continue to age while they are on file. 

For example a 20 year old account closed today contributes 20 years to the sum total of your aggregate accounts. Nine years from now that same closed account will contribute 29 years.. As mentioned above, 10 years from now that account disappears off your report and thus no longer makes a contribution to age.

[CreditDunce]

If it is just the CL that bothers you, why not try app'g for a Venture/QS combo.  In 6 months combine the new cards into the old.  No guarantee that you will be able to combine the cards in 6 months, but if nothing else the sign up bonuses are that bad.  Of course, the two new cards will hurt your AAoA depending on how thick your file is.

On the other hand, closing the card will not hurt in the short term.  Assuming you have some other cards in the pipe line, they will have good age in 10 years when the Cap1 card probably will drop off.

[Anonymous]

Thanks for all the help, it definitely clears things up for me. I do have a few other active cards that are in the 10-15 yr range that will also continue to age...this one can definitely go away. 

[SouthJamaica]

---

@Anonymous wrote:

Wanted to find out from those in the know, the effect of closing an aged card in good standing. I have an old Capital One rewards card that began its life back in 1994 as a secured credit card. As credit improved, it graduated to a normal credit card, and is my oldest active account...which I know is good for my score. But even after all this time, and with FICO scores in the 800's and total CC utilization at < 2%, I can't get them to raise the CL more than an additional $750, for a total of $2900. In addition, they keep sending me 0%/12-month offers that I might be inclined to take advantage of, but not with this low CL. So I'm ready to cut ties with this card (I have no other Capital One accounts). With the card playing such a big part in my average age of accounts, how big of a factor is it likely to be in my FICO if I close it? I'm not worried about it changing my utilization, it's a drop in the bucket of my total CL. Thanks in advance for any help.

---

With your scores, if you were to apply for a Venture card you would probably get one with a starting limit of $30,000.

Then, 6 months down the road, you could combine your Venture card into the old card.

[Anonymous]

My wife has a card that she got back in 2008 with a $300 limit - Ever since we started dating and got married 3 years ago, I've been requesting a CLI every month like clockwork.  Each time it's denied without a clear reason.  The last three months denial reasons were the same: "A credit limit increase is currently not available upon request because Capital One is evaluation account activity at assigned credit limits".  In trying to increase the "activity" on the account, we constantly run several thousands of dollars thru that card (paying off at least once a week) for months... They just won't budge.  She has two other Capital One cards with $21,000 and $15,000 limits respectivily.  So it's not like they're afraid to give her credit. 

I'm in agreement with what others have said about account combinations - Apply for a Venture card, get approved for $20-30K and then in 6 months combine it with this oldest card.  You should see very little in negative AAoA and you will have a card with a usable credit limit that fits your needs.

[Anonymous]

---

@Anonymous wrote:

Wanted to find out from those in the know, the effect of closing an aged card in good standing. I have an old Capital One rewards card that began its life back in 1994 as a secured credit card. As credit improved, it graduated to a normal credit card, and is my oldest active account...which I know is good for my score. But even after all this time, and with FICO scores in the 800's and total CC utilization at < 2%, I can't get them to raise the CL more than an additional $750, for a total of $2900. In addition, they keep sending me 0%/12-month offers that I might be inclined to take advantage of, but not with this low CL. So I'm ready to cut ties with this card (I have no other Capital One accounts). With the card playing such a big part in my average age of accounts, how big of a factor is it likely to be in my FICO if I close it? I'm not worried about it changing my utilization, it's a drop in the bucket of my total CL. Thanks in advance for any help.

---

I know your problem.  Have a Cap One still holding onto because it's 12 yrs old but only has a 6k limit.  

I would try to get another Cap One.  They usually start you off with higher limits now.  And it is really very difficult to get them to raise your old cards limit to anything near decent.  I'm going to ask them one more time in a year and then close also and try again for another if necessary.  My green Amex is over the hill & on it's way back down!!!!  I had that since I was 20 so I will probably never get rid of it unless they cancel it.

[Anonymous]

Sounds like a good idea, but it will probably have to wait a few months...I did a couple apps for CSP and BC Arrival+ a couple weeks ago and am currently already trying to burn through $7K in minimum spending to get my bonus points. But I can't turn down another 40K in points, hopefully that deal waits for me!