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Improving Average Age of Account ?

Valued Member

Improving Average Age of Account ?

On my latest credit pull my average age of  accounts is 8 years, with my longest account being 18 + years old.  I'm working on all factors that contribute to my credit score and currently my avg age of accounts is rated as Good.   I would like to get to very good or excellent.   Question I have is, if I have 3 newer cards that I don't need, don't plan to use all opened in 2014, if I were to close those accounts would that improve my average age of accounts?   

Message 1 of 12
11 REPLIES
Established Contributor

Re: Improving Average Age of Account ?

Once you open an account, it doesn't matter if you close or not, your AAoA is already affected. No point closing the accounts unless you don't need it and has AF. If you close it, closed account would stay on your CR for 10 years.

Message 2 of 12
Community Leader
Super Contributor

Re: Improving Average Age of Account ?


anewme35 wrote:

On my latest credit pull my average age of  accounts is 8 years, with my longest account being 18 + years old.  I'm working on all factors that contribute to my credit score and currently my avg age of accounts is rated as Good.   I would like to get to very good or excellent.   Question I have is, if I have 3 newer cards that I don't need, don't plan to use all opened in 2014, if I were to close those accounts would that improve my average age of accounts?   


No, you cannot improve AAoA by closing accounts. All OC accounts, both open and closed are factored into AAoA. Just be patient and let time do its work. 8 years is already a pretty decent AAoA, you're just not likely to see big point gains by stretching it out more.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
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Message 3 of 12
New Contributor

Re: Improving Average Age of Account ?

Will close the accounts hurt utilization as well?  To explain better, will cosing accounts such as credit cards deduct the dollar value from your available amount?  I hope this makes sense.  LOL

Message 4 of 12
Community Leader
Super Contributor

Re: Improving Average Age of Account ?


SystemChief1 wrote:

Will close the accounts hurt utilization as well?  To explain better, will cosing accounts such as credit cards deduct the dollar value from your available amount?  I hope this makes sense.  LOL


Yes, it will.

Most Recent FICO 8 Scores EX616/TU587/EQ607 01/09/2018 Starting scores 553/485/543 08/25//2017
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SDFCU VISA Secured $250
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Message 5 of 12
Community Leader
Legendary Contributor

Re: Improving Average Age of Account ?

You can call the creditor and additionally request that, upon closing the account, they report deletion of the entire account with the CRA.

Deletion obviously will remove from AAoA scoring.  It is, however, discretionary on the part of the creditor.

 

 

 

Message 6 of 12
New Contributor

Re: Improving Average Age of Account ?

I just had a crazy thought somewhat.  If OP was to remove TLs from his CR, would that make his AAoA go up as they will have fewer accounts?  Just asking as I have no idea on how this works.

Message 7 of 12
Established Member

Re: Improving Average Age of Account ?

The most agist part of this whole thing. Other than young people don't have the money to take it to court, this really is unconstitutional.

Message 8 of 12
Valued Contributor

Re: Improving Average Age of Account ?


wannacredit wrote:

The most agist part of this whole thing. Other than young people don't have the money to take it to court, this really is unconstitutional.


Really?  Based on what??? There's no constitutional right to have credit.  SMH.  

Message 9 of 12
Community Leader
Legendary Contributor

Re: Improving Average Age of Account ?

One factor in the scoring of AAoA that really, in my opinion, is unfair stems from the CRA policy of arbitrarily deleting accounts that have been closed for approx. ten years.

 

While I understand the CRA position in wanting to retrieve database capacity, and their assumption that accounts closed for ten years have likely already had all derogs exlcuded from credit reports, and thus have dubious value to the customers, that assumes that only creditors are their customers.

We consumers are ignored in their decision to delete, and its clear affect on AAoA and oldest account in length of credit scoring.

 

Accounts subjectively deleted by the CRAs are almost always older than the consumer's current average age of accounts, and thus their deletion will lower consumer AAoA, and often also remove their oldest account. Consumer affect is ignored by the CRAs.

Perhaps they could restain only the account name and open date, thus permitting the continued scoring of its age.........

 

Message 10 of 12