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practical AAoA score impact of closing older cards

New Member

Re: practical AAoA score impact of closing older cards

The Fico scoring model does not count in tradelines the are inactive. Any tradeline that has no transactions with in six months will not be counted in to the fico scoring model. The closed acounts even if they are still on your credit report as you mentioned for 10 years. They are still not caculated  in the Fico Scoring model (after six months). Any benfit that they give you will be lost. 

 

There is no one size fits all, on how many points your score will drop. Everyone is diffrent.

 

Thanks

Message 11 of 18
New Member

Re: practical AAoA score impact of closing older cards

Worng! If credit card is closed or inactive. Even if it still shows on your credit report it will still not be factored into the fico scoring model.

Message 12 of 18
Valued Contributor

Re: practical AAoA score impact of closing older cards


@SamBillo wrote:

wrong! If credit card is closed or inactive. Even if it still shows on your credit report it will still not be factored into the fico scoring model.


SamBillo, closed accounts will most certainly count in age related factors until it drops off completely typically in 10 years. Open but inactive accounts (greater than 6 months or otherwise) will continue to count, in addition to age related factors, in aggregate UTI until it is closed by user or lender.

Message 13 of 18
Super Contributor

Re: practical AAoA score impact of closing older cards

Many people would like their accounts with baddies to be ignored by the scoring models. The strategy for accounts with baddies would be to just sock drawer the account, hocus-pocus and six months later it’s like those baddies never even happened.
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 14 of 18
Super Contributor

Re: practical AAoA score impact of closing older cards

SamBillo above is misinformed.
Message 15 of 18
Established Contributor

Re: practical AAoA score impact of closing older cards


@iv wrote:

@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.)

 


Yes, this is what I meant. We don’t know what can happen in the future so we just go by what happens now but its important to make the distinction when you’re speaking about future consequences I believe. 


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 16 of 18
Valued Contributor

Re: practical AAoA score impact of closing older cards


@NRB525 wrote:
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.

My oldest tradeline (19 or so years) will stay ... it's over $20K.  I'm considering closing my next oldest cards, 'cause the low(ish) CLs tick me off.  If I can get a PenFed card with a decent CL, 2% back and no FTF, I'm inclined to retire the DC.  And while I rather like CB as an institution (we did well by it when we lived in New England), I no longer find use for the card.  I'm also inclined to close the Ring, moving its CL to the Uber.

 

Yeah, I know there's no downside in SD'ing the cards, as they have no AF's, but my goal is bigger credit limits and fewer cards - say, 6-8 25K cards.  Bottom line: if I can close cards with a negligible FICO hit, I'm inclined to do so.  I'd wager that as my scores creep towards 850, I'll manage to stay above 800 even with a short-ish AAoA.

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 17 of 18
Super Contributor

Re: practical AAoA score impact of closing older cards

If your oldest account is a keeper, then in my opinion anything less-aged has to find another reason to keep. If it's not working for you, close it, AF or no AF.

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 18 of 18