How Cancelling Your Oldest Credit Card Affects Score?

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rsdofny
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How Cancelling Your Oldest Credit Card Affects Score?

Postby rsdofny » Mon Dec 16, 2013 11:56 am

I have a relationship with AmEx for 26 years. Of which, I have been using a platinum cash rebate card for the last 16 years (The program is no longer offered by AmEx). I want to switch to an AmEx Blue Cash.

The AmEx rep said that I had to apply a new card and cancelled my existing one.

Given that the AmEx card is the earliest and oldest credit card that I have, would that affect my credit score if I cancel it even if I have another AmEx card? Does the credit score calculation basing on the length of the relationship with the credit card company or the specific account?

In various credit reports, it still indicates that I have been an AmEx member since 87. That covers the entire period I have been with AmEx.


MemberSince99
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Postby MemberSince99 » Mon Dec 16, 2013 12:31 pm

In this case, because Amex backdates, it really won't affect you long term because your new account will become the same age as your oldest account plus or minus a few months if the month is different.


Utilization could affect your score but I'm not familiar with what that card is, the one you have now, as I've never heard of it.


Make sure you app and get approved BEFORE you close the existing account.


I doubt it will affect you much at all when all is said and done.

takeshi
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Postby takeshi » Tue Dec 17, 2013 8:01 am

rsdofny wrote:Given that the AmEx card is the earliest and oldest credit card that I have, would that affect my credit score if I cancel it even if I have another AmEx card? Does the credit score calculation basing on the length of the relationship with the credit card company or the specific account?

AAoA stands for Average Age of Accounts (i.e. it's per account, not per creditor) but AmEx, unlike other creditors, backdates so all of your AmEx cards report as being opened in the year you established your AmEx membership. That said, AAoA isn't immediately impacted by closing an account as closed accounts in good standing continue to report for 10 years. AAoA is calculated on both open and closed accounts.

It's utilization (closing a revolving account decreases available credit) that will immediately affect your score.



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