Impact of Losing an Old Account

[credit8502020]

Hi All! I'm trying to help someone I know determine the impact of losing an old deragatory account. 

Here are the credit card details: 

Opened 2003

Closed in 2014

String of lates - On EQ & TU - 30 day (8/18, 9/18) & 60 day (10/18)
On EXP - 1 30 day (10/18)

$0 Balance

Oldest account: EQU, TU & EXP
32YR 10MO, 32YR 10MO, 32YR 10MO
Average age of accounts: 
13YR 4MO, 13YR 10MO, 14YR

All Fico scores are in or close to the 800s.

Questions:

1. If this account is totally removed from the credit report, what type of impact should they expect? 
2. What is the different impact of closed vs open accounts on average age? 
3. How long should a closed account stay on your credit report? I've seen mixed answers. 7 yrs for some and 10 yrs for another. 
4. When the time comes, 7 yrs or 10 yrs., is it as simple as requesting that they remove the account? 
5. What other concerns would you suggest they consider?
6. For a thick file, what is the optimal average age of accounts? Does this vary per bureau? 

Is the printed report the best place for us to find the average age of accounts? I haven't been able to find it elsewhere. 

Thank you for your feedback. 

@SouthJamaica & @FireMedic1 I've seen you respond regarding things like this so I figured I would tag you. 

[GZG]

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@credit8502020 wrote:

Hi All! I'm trying to help someone I know determine the impact of losing an old deragatory account. 

Here are the credit card details: 

Opened 2003

Closed in 2014

String of lates - On EQ & TU - 30 day (8/18, 9/18) & 60 day (10/18)
On EXP - 1 30 day (10/18)

$0 Balance

All Fico scores are in or close to the 800s.

Questions:

1. If this account is totally removed from the credit report, what type of impact should they expect? Based on their scores now, I imagine the only thing holding them back are these lates. I would imagine an uplift once the lates fall off. The account should remain as a positive account once the lates fall off in 7 years.
2. What is the different impact of closed vs open accounts on average age? None
3. How long should a closed account stay on your credit report? I've seen mixed answers. 7 yrs for some and 10 yrs for another. The lates should remain for up to 7 years and the account itself should remain for 10 years.
4. When the time comes, 7 yrs or 10 yrs., is it as simple as requesting that they remove the account? Once the lates age out at 7 years, the account is fully positive and you shouldn't want it removed. 
5. What other concerns would you suggest they consider?
6. For a thick file, what is the optimal average age of accounts? Does this vary per bureau? Older is always better, but credit is there to be used, so I wouldn't go out of my way to not open accounts you want for the sake of AAoA. But avoiding store cards for a one time 30% coupon, that you're not going to take advantage of is probably wise in terms of average age of accounts.

Is the printed report the best place for us to find the average age of accounts? I haven't been able to find it elsewhere. Experian and myFico calculate this in a way that's easy to see. MyEquifax or your EQ credit report should also have this information near the top in the summary.

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how was a card closed in 2014 with only a few lates in 2018 without being CO'd? 

Are they not reporting a CO or something? Was it closed and then paid off over the next four years I imagine?

[credit8502020]

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@GZG wrote:

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@credit8502020 wrote:

Hi All! I'm trying to help someone I know determine the impact of losing an old deragatory account. 

Here are the credit card details: 

Opened 2003

Closed in 2014

String of lates - On EQ & TU - 30 day (8/18, 9/18) & 60 day (10/18)
On EXP - 1 30 day (10/18)

$0 Balance

All Fico scores are in or close to the 800s.

Questions:

1. If this account is totally removed from the credit report, what type of impact should they expect? Based on their scores now, I imagine the only thing holding them back are these lates. I would imagine an uplift once the lates fall off. The account should remain as a positive account once the lates fall off in 7 years.
2. What is the different impact of closed vs open accounts on average age? None
3. How long should a closed account stay on your credit report? I've seen mixed answers. 7 yrs for some and 10 yrs for another. The lates should remain for up to 7 years and the account itself should remain for 10 years.
4. When the time comes, 7 yrs or 10 yrs., is it as simple as requesting that they remove the account? Once the lates age out at 7 years, the account is fully positive and you shouldn't want it removed. 
5. What other concerns would you suggest they consider?
6. For a thick file, what is the optimal average age of accounts? Does this vary per bureau? Older is always better, but credit is there to be used, so I wouldn't go out of my way to not open accounts you want for the sake of AAoA. But avoiding store cards for a one time 30% coupon, that you're not going to take advantage of is probably wise in terms of average age of accounts.

Is the printed report the best place for us to find the average age of accounts? I haven't been able to find it elsewhere. Experian and myFico calculate this in a way that's easy to see. MyEquifax or your EQ credit report should also have this information near the top in the summary.

---

how was a card closed in 2014 with only a few lates in 2018 without being CO'd? 

Are they not reporting a CO or something? Was it closed and then paid off over the next four years I imagine?

---

@GZG Thank you! 

1. How long should a closed account stay on your credit report? I've seen mixed answers. 7 yrs for some and 10 yrs for another. The lates should remain for up to 7 years and the account itself should remain for 10 years. 

Ok. Is the 10 years from the closing date or the date of last activity? 

how was a card closed in 2014 with only a few lates in 2018 without being CO'd? 
I guess because there was a payment plan in place. Although on the report it shows that the closing date was 2014, I want to make sure that is accurate. I don't recall if reports from AnnualCreditReport.com shows account closing dates, but I was going to look and see the data there to make sure what is showing on MyFico is accurate.  

Are they not reporting a CO or something? Was it closed and then paid off over the next four years I imagine?

Yes, no CO at all. Yes.

Yes, I agree. The lates are the only things holding their scores back. I'm just wondering, when this account comes off, it impacts the overall profile. Do closed accounts weigh as much as open accounts regarding average age and overall impact on the score and profile, etc.? 

I updated the post to include the average age of accounts as well. 

[SouthJamaica]

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@credit8502020 wrote:

Hi All! I'm trying to help someone I know determine the impact of losing an old deragatory account. 

Here are the credit card details: 

Opened 2003

Closed in 2014

String of lates - On EQ & TU - 30 day (8/18, 9/18) & 60 day (10/18)
On EXP - 1 30 day (10/18)

$0 Balance

Oldest account: EQU, TU & EXP
32YR 10MO, 32YR 10MO, 32YR 10MO
Average age of accounts: 
13YR 4MO, 13YR 10MO, 14YR

All Fico scores are in or close to the 800s.

Questions:

1. If this account is totally removed from the credit report, what type of impact should they expect? 
2. What is the different impact of closed vs open accounts on average age? 
3. How long should a closed account stay on your credit report? I've seen mixed answers. 7 yrs for some and 10 yrs for another. 
4. When the time comes, 7 yrs or 10 yrs., is it as simple as requesting that they remove the account? 
5. What other concerns would you suggest they consider?
6. For a thick file, what is the optimal average age of accounts? Does this vary per bureau? 

Is the printed report the best place for us to find the average age of accounts? I haven't been able to find it elsewhere. 

Thank you for your feedback. 

@SouthJamaica & @FireMedic1 I've seen you respond regarding things like this so I figured I would tag you. 

---

1. I don't know.

2. Closed vs Open accounts have the same impact on AAoA. As long as a closed account continues in the reports, it's counted in AAoA.

3. It varies. I had some closed accounts drop out of my Equifax reports a year after they were closed.  I'm told that the most typical length is 10 years, but it can be longer than that, or sooner than that.

4. I don't know. I doubt it's so simple.

5. Can't think of any.

6. I think for all files it's at least 8 or 9 years. There is no optimum. The longer the better.

No the printed reports are not the best place. A 3 bureau report from myfico.com is a good place to find out what the AAoA is in each bureau.

[credit8502020]

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@SouthJamaica wrote:

---

@credit8502020 wrote:

Hi All! I'm trying to help someone I know determine the impact of losing an old deragatory account. 

Here are the credit card details: 

Opened 2003

Closed in 2014

String of lates - On EQ & TU - 30 day (8/18, 9/18) & 60 day (10/18)
On EXP - 1 30 day (10/18)

$0 Balance

Oldest account: EQU, TU & EXP
32YR 10MO, 32YR 10MO, 32YR 10MO
Average age of accounts: 
13YR 4MO, 13YR 10MO, 14YR

All Fico scores are in or close to the 800s.

Questions:

1. If this account is totally removed from the credit report, what type of impact should they expect? 
2. What is the different impact of closed vs open accounts on average age? 
3. How long should a closed account stay on your credit report? I've seen mixed answers. 7 yrs for some and 10 yrs for another. 
4. When the time comes, 7 yrs or 10 yrs., is it as simple as requesting that they remove the account? 
5. What other concerns would you suggest they consider?
6. For a thick file, what is the optimal average age of accounts? Does this vary per bureau? 

Is the printed report the best place for us to find the average age of accounts? I haven't been able to find it elsewhere. 

Thank you for your feedback. 

@SouthJamaica & @FireMedic1 I've seen you respond regarding things like this so I figured I would tag you. 

---

1. I don't know.

2. Closed vs Open accounts have the same impact on AAoA. As long as a closed account continues in the reports, it's counted in AAoA.

3. It varies. I had some closed accounts drop out of my Equifax reports a year after they were closed.  I'm told that the most typical length is 10 years, but it can be longer than that, or sooner than that.

4. I don't know. I doubt it's so simple.

5. Can't think of any.

6. I think for all files it's at least 8 or 9 years. There is no optimum. The longer the better.

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@SouthJamaica Ok. Thank you