Do closed cards help to increase AoA?
Aug 11, 2012, 1:03 pm
#1
Original Poster
Join Date: Nov 2009
Posts: 1,058
Do closed cards help to increase AoA?
Does closed cards help to increase AoA? Is AoA calculated by using all tradelines, or does it only calculate active tradelines?
TIA... I'm thinking of whether or not I should close 1 or 2 low limit cards...
TIA... I'm thinking of whether or not I should close 1 or 2 low limit cards...
Aug 11, 2012, 9:46 pm
#2
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Join Date: May 2001
Location: Southern California
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If the low limit cards are OLD, do not cancel them. I believe that on closed accounts, they only count them for 10 yrs after closing. If open, they are counted without regard to when they are open.
I own rental property and one applicant had a decent credit score in spite of having several credit lines maxed out. (he had plenty of income to pay rent since he used to own a house). Two of his tradlines were opened in 1964/1966 and still were active. That helped his score alot. If he closed out the accounts more than 10 yrs ago, they may not be on his report.
Bottom line: Keep the old accounts open if at all possible. Especially AMEX going back years!!!
I own rental property and one applicant had a decent credit score in spite of having several credit lines maxed out. (he had plenty of income to pay rent since he used to own a house). Two of his tradlines were opened in 1964/1966 and still were active. That helped his score alot. If he closed out the accounts more than 10 yrs ago, they may not be on his report.
Bottom line: Keep the old accounts open if at all possible. Especially AMEX going back years!!!
Aug 12, 2012, 8:13 pm
#5
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The tribal wisdom around FlyerTalk is that closed accounts count toward average age of accounts until they drop off the report (about 7 years).
However, the length of history is determined by the oldest account. So it makes sense to keep the oldest (or 2 or 3 oldest, just in case something happens to the oldest) open, so that the total length of history continues to grow.
However, the length of history is determined by the oldest account. So it makes sense to keep the oldest (or 2 or 3 oldest, just in case something happens to the oldest) open, so that the total length of history continues to grow.