Score effects of closing 40-yr-old cc?

[Anonymous]

I have a 40 year old card I want to close due to no perks zero and I have enough credit lines that the 5k limit on this card will not be missed. what I am worried about is will closing an old card like this hurt my age or is it still used in the average age and the oldest age or is it taken out of the formula? I want to replace it with a newer card with air miles.

(This was split off from another thread in Credit Cards to create its own thread here.  Thread title was edited and one phrase removed from beginning of post to avoid confusion. - Scamp)

Message Edited by Scamp on 09-26-2009 04:30 PM

[Anonymous]

It should stay on your report for up to 10 years after you close it - how old is your next oldest, still open card? If it's not costing you anything to keep open (i.e. no annual fee) then I would leave it open and just use it once every couple of months to keep it active to buy a tank of gas or some such.. it doesn't stop you from still opening the rewards car you want

[haulingthescoreup]

keninmiami, please read fused's Closing Credit Cards, linked down in my siggy.

The card should continue to report for 10 years after closing, factoring into your AAoA, but EQ is already "losing" closed accounts early, and who's to say that the other two won't follow suit? There's nothing in the FCRA that requires the bureaus to report closed accounts for 10 years.

I'd keep it open. Is it a bank card or a store-only card (no Visa, MC, etc logo)?

[smallfry]

Speaking of Equifax removing closed tradelines prior to 10 years. Are those deletions made by a computer or just some eager EQ employee?

[Anonymous]

     Hauling, thanks for the reply. Am I reading this correctly?

It is ok to close a 40 year old account in perfect standing because it will continue to report for up to 10 years continuing to be factored in the oldest card and the average age of accounts?

   I do not need the limit because I have more card with much higher limits reporting.

Here are the things I want to know

1) This is my oldest account still reporting and I want to close it. When I close it will I continue to get the age factor included in my average age and will it still report as my oldest account when it is closed?

2) I have my kids as Au's on this account will they still get the benefits of the age included in there scoring?

3) I am not worried about the amount (5k) coming out of my total credit line because I have plenty

4) I want to add 2 cards over the next year a) Saks world elite and b) Nordstroms Sig vis

5) I have  good mix of quality store cards and prime bank cards now

6) I have above average Ficos now

7) I will after closing wait a while ( I have 10 new accounts added 90 days ago)  to swwk the cards I want.

I also have to boring cards I will ax in the coming year, I want air miles and good perks period! This 40 year old card in one that is a BOA that was 2 dif banks before it starting with Barnett bought out then bought out and it is just not giving me any kind of love so I need something new!

   In a nut shell I will keep the age benefits but lose the credit limit in scoring correct? 

[smallfry]

Ken do yourself a favor and keep the card open. There is no upside to closing it. I think the kids lose the AU once closed and you might see the card dropped well before the 10 year promise. I have seen 10 accounts dropped 3-6 years early. Leave it open and avoid any possible problems.

[Anonymous]

   If it reports the age for 3 years thats good enough for me! I want some new cards with perks!

[smallfry]

It's not mutually exclusive. You can keep the old card and get new ones too. You're the boss.

[haulingthescoreup]

keninmiami, is there something about this card that is making you crazy, and causing you to want to close it? Because I just don't get it.

I have to reluctantly say that technically, you'd probably be OK closing it, as long as it continued to report, blah blah blah. As mentioned, it will probably come off your kids reports, though.

And not only will you lose it as the oldest history, you will lose its weight in the calculation of your AAoA.

All I know is that the thought of walking away from a perfectly good and open 40-year-old TL makes me physically ill.

[tiger67]

Why not just call BOA and request a product change to a card with rewards? They will issue the new card with perks while keeping your 40y history intact. No new inquiry and no hit on FICO for a new account. Best of both worlds.