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practical AAoA score impact of closing older cards

Valued Contributor

practical AAoA score impact of closing older cards

Hi folks.  As my sig shows, I'm finally in good shape, score-wise.  No need for new credit on the horizon.  To simplify life, I'm inclined to start closing/consolidating credit cards.  That said, the target (low limit) cards are also some of my oldest.  Two part question:

 

1) Is my understanding correct that, in all likelihood  ('cause I know that there's no guarantee), if I close a card or three, the closure is unlikely to impact my FICO AAoA calculation for a decade? [I know it'll impact my total amount of credit and aggregate util, but former will stay above 150K;  the latter will remain below 4%.]

 

2) If the closure were to immediately impact my AAoA, can anyone offer a worst-case score hit?

(For kicks, let's say my AAoA went from its current 7 years to 3.5 years and the oldest account went from 20 years to 10).  Currently, my FICO Payment History, Amount of Debt and Credit Mix are all 'Exceptional'; Length of Credit is 'Very Good'; Amount of New Credit is in the gutter (2 hard pulls in December (1x CLI, 1x phone), 2 new cards mid-October, one in May, one in April, and 4 more had their first anniversary last month).

 

For bonus marks -- thoughts on VantageScore 3.0 impact?

('cause Chase and Cap One seem to care about those)

 

Insight welcome.

2019 Goals: actually garden; save 3 months' net income; clear the BT cards; acquire a CO card
2020 Goal: Chase Freedom (Q2)

EQ8129 INQ (5 CC, 2 mort, phone, CU)
EX80610 INQ (6 CC, 2 HELoan, 2 mort)
TU8207 INQ (5 CC, 2 mort)
9/24 < 3% AAoA 6.6 - 7.3 | AoYA 0m | AoOA 20ish y
Take the myFICO Fitness Challenge [ Last INQ 7-Jan-2019 ]
I can garden. Yes, I can..
Message 1 of 18
17 REPLIES
Valued Contributor

Re: practical AAoA score impact of closing older cards

The answer is #1 so no need to speculate #2 or bonus round. Smiley Tongue

Message 2 of 18
Regular Contributor

Re: practical AAoA score impact of closing older cards

It kind of works like this.Any credit accounts will continue to age as long as the accounts are still on your credit report weather they are closed are not.If a cc is closed and you owe a balance the balance will will count toward cc utilization,but the credit limit will not.I recommend keeping your oldest cc account open because the longer you keep the cc open the better it is for your Fico score. 

Message 3 of 18
Super Contributor

Re: practical AAoA score impact of closing older cards

Chase and Cap One IMO don't care about the VS 3.0 scores they provide... they simply provide them because it's super cheap for them to do so.

Message 4 of 18
Established Contributor

Re: practical AAoA score impact of closing older cards


@BrutalBodyShots wrote:

Chase and Cap One IMO don't care about the VS 3.0 scores they provide... they simply provide them because it's super cheap for them to do so.


BBVA uses VS 3.0 in their credit making decisions, my cost of credit letter had both FICO and VS on there so there’s at least one lender who actually uses them in part to make decisions. 

 

As for AAoA, unless something drastic changes, all positive closed accounts remain on your report for at least 10 years. 


Starting Score: 647 TU/670 EX/680 EQ
Current Score:706 TU/671 EX/685 EQ
Goal Score:760/760/760

Take the myFICO Fitness Challenge


Scores 1/1/19:
Current scores:

Hover over my cards to see my limits!
Goal: Garden time until 2020!
Message 5 of 18
Super Contributor

Re: practical AAoA score impact of closing older cards


@Saeren wrote:

As for AAoA, unless something drastic changes, all positive closed accounts remain on your report for at least 10 years. 


What do you mean by drastic changes and positive closed accounts?

Message 6 of 18
Established Contributor

Re: practical AAoA score impact of closing older cards


@BrutalBodyShots wrote:

@Saeren wrote:

As for AAoA, unless something drastic changes, all positive closed accounts remain on your report for at least 10 years. 


What do you mean by drastic changes and positive closed accounts?


I mean unless the reporting rules are changed. We can’t say with absolute certainty that positive accounts will stay for 10 years in the future, we can only tell how it is currently. 


Starting Score: 647 TU/670 EX/680 EQ
Current Score:706 TU/671 EX/685 EQ
Goal Score:760/760/760

Take the myFICO Fitness Challenge


Scores 1/1/19:
Current scores:

Hover over my cards to see my limits!
Goal: Garden time until 2020!
Message 7 of 18
Super Contributor

Re: practical AAoA score impact of closing older cards

I guess I'm not understanding the word positive above.  What does it matter if the account is positive (or negative) if it's closed in terms of it remaining on one's report for the standard amount of time?

Message 8 of 18
Established Contributor

Re: practical AAoA score impact of closing older cards


@BrutalBodyShots wrote:

I guess I'm not understanding the word positive above.  What does it matter if the account is positive (or negative) if it's closed in terms of it remaining on one's report for the standard amount of time?


I believe that @Saeren is referring to that fact that while negative items are removed at 7.5 years by law, the 10 year "standard" for removing closed postive items is merely a convention on the part of the CRAs, and could be changed to a longer or shorter period of time by the CRAs at will. (Not that it's likely, though.)

 

EQ8:843 TU8:840 EX8:850 EQ9:850 TU9:850 EX9:850 EQ5:774 TU4:791 EX2:809 - 2018-11-07
Message 9 of 18
Super Contributor

Re: practical AAoA score impact of closing older cards

OP congrats on getting over 800.

Are your figures realistic, that if you closed your three oldest accounts, those are all over 10, up to 20 years old and your next oldest is 10 years max?

Which three cards are you considering closing, and why?

A no-AF card that is your oldest gets some sort of halo unless you have another more popular card that is say two years younger.
High Bal Jan 2009 $116k on $146k limits 80% Util.
Oct 2014 $46k on $127k 36% util EQ 722 TU 727 EX 727
April 2018 $18k on $344k 5% util EQ 806 TU 810 EX 812
Jan 2019 $7.6k on $360k EQ 832 TU 839 EX 831
Only one app would be interesting now, Platinum 100k, but Gold + Delta Reserve + SPG Luxury + Hilton Aspire covers a lot of ground. Useful cards: Hyatt and Diners and Altitude Reserve. Ch United maybe, on a lark, but not many other apps are necessary. Chase Trifecta is useful, but I'm not sure how long.
Message 10 of 18