Opinions on AAoA please

[Anonymous]

I am really grateful for all the advice from myFico over the years and wanted to ask one more question on the forum before going on a long break.

I was recently preapproved for the Penfed Power Card but already have the Penfed Platinum Cash Rewards. I initially wanted to increase the limit on my existing card w/ the preapproval. Turns out that's not possible because it's being phased out (like I've read here). I decided to open a new account and then transfer the CL from the Platinum.

My only concern is my AAoA (7 years now). I am heading off to grad school and expecting 8 new student loan accounts, which means a major impact on my AAoA (unless student loans don't factor in?)...

Should I transfer all of my CL to the Power Cash and close out the Platinum (almost 3 year history) or keep a small limit ($500?) on the Platinum?

For reference, I have about 15 active CCs on my credit report. Most of them are at zero and I have <1% util. Just passed the 800 mark on some credit bureaus (Thanks, MyFico forums!).

[Kforce]

If you close a CC account, it will remain on record for 10 years, so no harm to AAOA.

You have your Util under control, so it should not hurt you at all.

[Anonymous]

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@Anonymous wrote:

I am really grateful for all the advice from myFico over the years and wanted to ask one more question on the forum before going on a long break.

I was recently preapproved for the Penfed Power Card but already have the Penfed Platinum Cash Rewards. I initially wanted to increase the limit on my existing card w/ the preapproval. Turns out that's not possible because it's being phased out (like I've read here). I decided to open a new account and then transfer the CL from the Platinum.

My only concern is my AAoA (7 years now). I am heading off to grad school and expecting 8 new student loan accounts, which means a major impact on my AAoA (unless student loans don't factor in?)...

Should I transfer all of my CL to the Power Cash and close out the Platinum (almost 3 year history) or keep a small limit ($500?) on the Platinum?

For reference, I have about 15 active CCs on my credit report. Most of them are at zero and I have <1% util. Just passed the 800 mark on some credit bureaus (Thanks, MyFico forums!).

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Keep it due to no AF?

[Anonymous]

If your AAoA is about 7 years now, it will drop to about 5 years with the addition of 5 new accounts if you have 15 accounts on your credit report currently.  You said you have 15 credit cards, does that mean you have 15 accounts on your credit report, or do you have more total accounts (open or closed)?  The more you have, the less the impact to AAoA.

An AAoA drop from 7 years to 5 years isn't killer, IMO, so long as the rest of your profile is solid.

[Anonymous]

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@Anonymous wrote:

I am really grateful for all the advice from myFico over the years and wanted to ask one more question on the forum before going on a long break.

I was recently preapproved for the Penfed Power Card but already have the Penfed Platinum Cash Rewards. I initially wanted to increase the limit on my existing card w/ the preapproval. Turns out that's not possible because it's being phased out (like I've read here). I decided to open a new account and then transfer the CL from the Platinum.

My only concern is my AAoA (7 years now). I am heading off to grad school and expecting 8 new student loan accounts, which means a major impact on my AAoA (unless student loans don't factor in?)...

Should I transfer all of my CL to the Power Cash and close out the Platinum (almost 3 year history) or keep a small limit ($500?) on the Platinum?

For reference, I have about 15 active CCs on my credit report. Most of them are at zero and I have <1% util. Just passed the 800 mark on some credit bureaus (Thanks, MyFico forums!).

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Did you receive federal loans in your financial aid package? (subsidized & unsubsidized Stafford Loans) Did you receive loans for your undergrad? If so, it would just go under your current lender. No new loans needed. Unless you're trying to go through a private lender.

[Anonymous]

Thank you all for all the replies so far!

BrutalBodyShots - I have 7 closed and fully paid off student loan accounts from undergrad so that would put me at 22 old and new accounts.

KidFICO - I paid off all my student loans inbetween undergrad and grad school so no loans at the moment. Thankfully no private loans! My financial aid package will have both unsubsidized and direct plus loans. I'm not sure if they will go with my past lender (Nelnet).

[Anonymous]

KidFico, not completely sure about that. I am in grad school now and already had loans through FedLoan. The current loan I just got through them a few months ago shows as a separate and new account opened when it started reporting

[SouthJamaica]

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@Anonymous wrote:

I am really grateful for all the advice from myFico over the years and wanted to ask one more question on the forum before going on a long break.

I was recently preapproved for the Penfed Power Card but already have the Penfed Platinum Cash Rewards. I initially wanted to increase the limit on my existing card w/ the preapproval. Turns out that's not possible because it's being phased out (like I've read here). I decided to open a new account and then transfer the CL from the Platinum.

My only concern is my AAoA (7 years now). I am heading off to grad school and expecting 8 new student loan accounts, which means a major impact on my AAoA (unless student loans don't factor in?)...

Should I transfer all of my CL to the Power Cash and close out the Platinum (almost 3 year history) or keep a small limit ($500?) on the Platinum?

For reference, I have about 15 active CCs on my credit report. Most of them are at zero and I have <1% util. Just passed the 800 mark on some credit bureaus (Thanks, MyFico forums!).

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Usually the closed account stays in your reports for a long time, most people seem to think 10 years.

But not always.  Equifax recently dropped reporting 5 of my accounts which had been closed within the past year.

So to be on the safe side you might want to keep it open with a small limit.

[CreditDunce]

I would post this question in the understanding FICO scoring section.  There are a few folks there whose hobby is understanding FICO scoring...

But IMO AAoA isn't that important to FICO scoring.  Especially if you can stay above 4-5 years. Even if you AAoA drops, your oldest account age should still keep on rising helping your FICO score.  I will also note that most lenders don't look any differently at a 761 vs a 850 score.  At that range income and your average credit limit on other accounts becomes more important.

[Anonymous]

Thank you all for replying!

I will just close the old Platinum Cash Rewards and up the limit on the new Penfed Power Card. I'm pretty sure I won't apply for more credit until I graduate so my AAoA will most likely grow by then and I'll hopefully qualify for a Chase CSP/CSR.