How much would my credit score be negatively impacted by closing my oldest account?

[cws-21]

I think I probably already have a good idea, but I was hoping you good folks could provide me with your best informed guess as to how much my credit score would be negatively impacted by closing my oldest account. I have provided my credit cards below along with the year they were opened and I can provide the exact month if that would be useful.

There are a few things you should know. First, I have approached credit cards differently than many in these forums. Over the years, I have applied for credit cards that would benefit me and closed credit cards that no longer did regardless of the consequences. I currently have a credit score between 821 and 833. I understand that, if I closed my oldest account, that it would stay on my credit history for 10 years. I also realize that my credit score would be negatively impacted in 10 years because my AAoA would have decreased from what it would have been. My utilization would not really be a problem given the card that I would be canceling has my lowest limit ($1,800), which it has been at for over a decade. Given all the above and below, and with the understanding that this is not an exact science, how much would my credit score be negatively impacted by closing my OAFCU Platinum Credit Card (opened 2001; $1,800 credit limit)? As always, I very much appreciate the replies, information, insights, recommendations, and the like.

OAFCU Platinum Credit: 2001 ?

American Express Blue Cash Preferred: 2014

Citi Double Cash: 2018

Wells Fargo Propel AMEX: 2019

First Bankcard Rewards Signature (Ducks Unlimited): 2019

Chase Amazon Card: 2019

Target RedCard Credit Card: 2021

[OmarR]

Someone else is going to ask, so I might as well be the one. 

Any particular reason why you want to close it? Annual fee?  Or just because? (Which is your absolute right) 

[JeffMO]

In my opinion it shouldn't change at all providing it isn't a huge hit to utilization which you already stated isn't much. If it doesn't serve your needs, close it I closed my credit one card and never took a hit.

Enjoy

[thornback]

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@JeffMO wrote:

In my opinion it shouldn't change at all providing it isn't a huge hit to utilization which you already stated isn't much. If it doesn't serve your needs, close it I closed my credit one card and never took a hit.

Enjoy

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There is no immediate impact on scores because closed accounts continue to age and be factored into your age of accounts for as long as they remain on your reports (~10 years after the date of closure).  However, the loss in age once the account is finally removed down the road can, indeed, negatively affect scoring due to reduced AAoA - tho I haven't done the math in how much aaoa would change in this particular case.

Also the age of the oldest account (AoOA) is also a scorecard segmentation factor.  Losing a card thats nearly 20 years older than all others can have a negative impact, in addition to the potential impact from reduced AAoA.

That said - the other cards will be 10+ years old at that point so a re-segmentation may not occur in this case. 

@Anonymous - can you chime in here please? - i think i recall reading that once AoOA reaches 10 years, there is no additional segmentation from aging beyond that point- is that right? 

[cws-21]

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@OmarR wrote:

Any particular reason why you want to close it? Annual fee?  Or just because? (Which is your absolute right) 

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@OmarR, thanks for the reply. There is no annual fee, but it is another account to check regularly and it isn't doing much for me. I try to simplify my life anywhere and everwhere I can so I can focus my time and energy on those people, activities, hobbies, etc. bringing value and meaning to my life (like being on myFICO!). I know that it doesn't take much time to periodically check my account for this particular credit card, monitor it for possible fraud, and to remember to make small purchases every once in awhile, but it is time that I could better use elsewhere.

[cws-21]

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@thornback wrote:

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@JeffMO wrote:

In my opinion it shouldn't change at all providing it isn't a huge hit to utilization which you already stated isn't much. If it doesn't serve your needs, close it I closed my credit one card and never took a hit.

Enjoy

---

There is no immediate impact on scores because closed accounts continue to age and be factored into your age of accounts for as long as they remain on your reports (~10 years after the date of closure).  However, the loss in age once the account is finally removed down the road can, indeed, negatively affect scoring due to reduced AAoA - tho I haven't done the math in how much aaoa would change in this particular case.

Also the age of the oldest account (AoOA) is also a scorecard segmentation factor.  Losing a card thats nearly 20 years older than all others can have a negative impact, in addition to the potential impact from reduced AAoA.

That said - the other cards will be 10+ years old at that point so a re-segmentation may not occur in this case. 

@Anonymous - can you chime in here please? - i think i recall reading that once AoOA reaches 10 years, there is no additional score gain from aging beyond that point- is that right? 

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@JeffMO, thank you for the reply. @thornback, thanks for responding. I really appreciate the information and hope others can chime in. I understand that there will be a negative impact on my credit score in 10 years, for the reasons that you mentioned, I just don't know how much of an impact it will be. I also realize that there are a lot of unknown variables that will play a role between now and then such as whether or not I keep the cards that I currently have and/or apply for new cards. I am just hoping for some informed opinions on what I can likely expect.

[Anonymous]

Not enough information provided to say really.

You'd have to project your age of accounts changes 10 years from now... So basically if that card is 20 years old now, in 10 years when it's expected to fall off after closure what would your AoOA drop from?  If it's from 30 years to something 20+ years, you'd be in a similar place to where you are now.  Also keep in mind that eliminating an old revolver will not only drop your AAoA when it comes off your report, but also your AAoRA, which some believe may be more important than AAoA.

Ultimately the decision is yours, OP, but I would definitely take a look at the numbers and work out the math before closing the account.  You also have to consider your own credit habits and project what they may be over the next decade.  If you're the type of person that opens a card every year or two and thus may have 5-10 more revolvers on your CR at that time it could impact your numbers differently than if you hardly ever open new accounts.

[longtimelurker]

And another important thing to remember about consequences 10 years away, we have no idea about how the then-current scoring system will work.  While some things will presumably be similar (lates and chargeoffs are unlikely to be rewarded!) things like age and mix of credit could change in importance, and more significant changes (such as the trending added to FICO 10) could happen

[cws-21]

@Anonymous & @longtimelurker, I appreciate your responses. I knew this was a complex and complicated issue, but I was hoping there may be some sort of generalities that could be made. Is that not the case? Would the best balance of information at this point in time indicate a possible or likely 10 point reduction in 10 years? 50 point reduction? As I previously mentioned, I understand that there are many unknown factors, but I always prefer to make informed decisions. However, I don't believe that I am informed enough to make this decision.

[wingennis]

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@cws-21 wrote:

I think I probably already have a good idea, but I was hoping you good folks could provide me with your best informed guess as to how much my credit score would be negatively impacted by closing my oldest account. I have provided my credit cards below along with the year they were opened and I can provide the exact month if that would be useful.

There are a few things you should know. First, I have approached credit cards differently than many in these forums. Over the years, I have applied for credit cards that would benefit me and closed credit cards that no longer did regardless of the consequences. I currently have a credit score between 821 and 833. I understand that, if I closed my oldest account, that it would stay on my credit history for 10 years. I also realize that my credit score would be negatively impacted in 10 years because my AAoA would have decreased from what it would have been. My utilization would not really be a problem given the card that I would be canceling has my lowest limit ($1,800), which it has been at for over a decade. Given all the above and below, and with the understanding that this is not an exact science, how much would my credit score be negatively impacted by closing my OAFCU Platinum Credit Card (opened 2001; $1,800 credit limit)? As always, I very much appreciate the replies, information, insights, recommendations, and the like.

OAFCU Platinum Credit: 2001 ?

American Express Blue Cash Preferred: 2014

Citi Double Cash: 2018

Wells Fargo Propel AMEX: 2019

First Bankcard Rewards Signature (Ducks Unlimited): 2019

Chase Amazon Card: 2019

Target RedCard Credit Card: 2021

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I do this, too.  My good credit score is supposed to work for me.  If a card no longer benefits me, I shouldn't have to maintain it in order to polish my credit score.  My oldest account from 1998 just fell off my EQ report last year.  My next oldest that remained was 2005  I lost <10 points IRC.