WHEN WILL CLOSED ACCT FALL OFF REPORT AND NO LONGER IMPACT AAoA?

[Trudy]

Good Saturday to All,

Wondering if someone can clarify when a closed account will fall off of ones credit report, impacting AAoA.  I've heard that closed accounts can stay on your account up to 10 years.  Is this from closed date, last activity date,???

I have an older account opened 7/2003 and closed 9/2011 and last activity 10/2011.  There's a late payment from 9/2011 which reaches 7 years and should fall off 9/2018(?)/10/2018(?).  When will this account no longer impact my AAoA?

[HeavenOhio]

Ten years is a good estimate and worth placing a small bet on. However, some have seen closed accounts drop much sooner than ten years, and some have seen them stick around a lot longer.

I wouldn't be surprised if "last activity" and "date closed" might be one in the same simply because the closure might rate as a type of activity. This is purely speculation on my part, though.

[DollyLama]

How severe was the late? Is it the only incident?  It may be impacting your score a bit, but the age is helping, unless you have older accounts on your file that are open currently, or opened before the account in question and closed later. Your oldest account aging off will reduce not only Age of Oldest Account but also Average Age of Accounts. It is dependent on each person's file, perhaps you opened a revolver during this time, or mortgage, and will only reduce the age 1 or 2 years. However if it is your oldest by 5-6 years or more, it definitely will.

[jamie123]

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@Trudy wrote:

Good Saturday to All,

Wondering if someone can clarify when a closed account will fall off of ones credit report, impacting AAoA.  I've heard that closed accounts can stay on your account up to 10 years.  Is this from closed date, last activity date,???

I have an older account opened 7/2003 and closed 9/2011 and last activity 10/2011.  There's a late payment from 9/2011 which reaches 7 years and should fall off 9/2018(?)/10/2018(?).  When will this account no longer impact my AAoA?

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There isn't a hard rule that closed accounts must stay on your reports for 10 years, or that closed accounts will fall off after 10 years. Closed accounts can fall off much sooner or hang around for much longer. I had a line of credit on my EX report that was opened in 1987 and was closed in 1993 that stayed on my report until 2015. (It helped my score on EX tremendously because it was by far and away my oldest account.) Closed accounts GENERALLY stay on reports for 10 years from the CLOSED date.

Negative information, besides tax liens and bankruptcies, will not affect your credit score after 7 years and this is the LAW. By this September your late payment won't affect your score anymore, even if it is still shown on your report. In September you can call and have that account removed if it is still shown on your report and it bothers you.

[Trudy]

Thanks for your input @HeavenOhio.  I guess my question really is, if 10 years, than10 years from which date?

[Trudy]

Thanks for your response @DollyLama.  It's my 5th oldest account with 1996 being the oldest.  2 more revolving accounts opened in same year and an installment the year after. 

9/2011 late is a 90 day which I'm pretty sure still impacts my score.  But I guess this leads to another question, there is a 30 day @ 7/2011, 60 day @ 8/2011.  Not sure if each will fall off each month or since it's in succession will all be removed at the same time?

But my real question from original post is from which date in my scenario, would the 10 year count start? 

[Trudy]

Thanks @jamie123.  I think this answers my question.  I haven't opened an account since 10/2016 and once that late falls off (because it's a 90 day) I will be looking to open another account.  My oldest account is from 1996 so I was wondering if this 5th oldest account falling off will majorly impact my AAoA.

[Anonymous]

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@Trudy wrote:

@Anonymous @jamie123.  I think this answers my question.  I haven't opened an account since 10/2016 and once that late falls off (because it's a 90 day) I will be looking to open another account.  My oldest account is from 1996 so I was wondering if this 5th oldest account falling off will majorly impact my AAoA.

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That's easy to answer.  Assume that the account will fall off exactly 10 years after it was closed (just for simplicity's sake).

Then calculate your AAoA based on the month before (when it is still there) and also the month after (when it is gone).  That will tell you what kind of an AAoA drop you'll get.

If you don't understand how to calculate your AAoA, it's no different that finding any average of a bunch of numbers.

Estimate how old each account will be (in months) at the point you expect the account to fall off.  Add those numbers together.  Then divide by the total number of accounts.  That's your AAoA (in months).  If you want that AAoA in years, divide the AAoA in months by 12.

[Anonymous]

PS.  The good news is that your Age of Oldest Account (AoOA) will not be affected when it falls off, since it is not in fact your oldest account.  AoOA is a separate scoring factor from AAoA.

If your AoOA is tied to a credit card that is currently open, do your best to keep that card from ever being closed (e.g. due to inactivity).  In fact, if your two oldest accounts are both credit cards, I'd make sure you keep both open.

[Trudy]

Thanks for your response @CreditGuyInDixie.  My 4 oldest accounts are still active.  This being my 5th oldest and possibly falling off soon I was just wondering how that will impact my AAoA.  If I have a choice I will not close the oldest from 1996.  I actually have a calculator and think I'm in decent standings with an AAoA at 12+ years.  But wasn't sure when a closed account would drop out of the equation.

If possible, can you provide some insight on the secondary question in regard to the 30, 60, 90 day, whether all 3 will fall off at the same time considering it's consecutive months, or whether each will fall off at 7 years individually?