Need help understanding Average age of accounts

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p51
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Need help understanding Average age of accounts

Postby p51 » Sat Jan 10, 2015 7:57 am

Hello all,

I don't fully understand AAoA. My oldest card, Cap One unsecured,was opened 5/2012. My credit has since recovered & I want to cancel the card (will replace it with another this coming summer). I was approved for three new cards in November 2014. What will be the repercussions if I close the Cap One, which is by far my oldest card account. I'm also looking at applying for an AMEX Simply Cash for business in the next few months.
Thank you for the help.
Capital One secured opened May 2012 -- $1401 ($1200 of my own money to increase limit) I will be closing this as soon as I qualify for an AMEX Simply Cash business card (hopefully this summer).
Amex PRG opened Nov 2014 -- No preset spending limit
Chase Freedom Nov 2014 -- $4000
Bank of America Cash Rewards Nov 2014 -- $2500


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lobbythis
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Postby lobbythis » Sat Jan 10, 2015 10:14 pm

It still shows up as your oldest account. Only thing affecting your AAoA is all of those new accounts.

A secured card is garbage. Time to let it go. You have legitimate credit cards now.

ingramjuan
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Postby ingramjuan » Sat Jan 10, 2015 11:15 pm

if not mistaken, and hope someone correct me I think if you close the card it will still show on your credit report as your oldest card for 10 years.
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p51
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Postby p51 » Sun Jan 11, 2015 7:22 am

lobbythis wrote:It still shows up as your oldest account. Only thing affecting your AAoA is all of those new accounts.

A secured card is garbage. Time to let it go. You have legitimate credit cards now.


Thanks for the info. Glad to know closing it won't affect my score.
Capital One secured opened May 2012 -- $1401 ($1200 of my own money to increase limit) I will be closing this as soon as I qualify for an AMEX Simply Cash business card (hopefully this summer).
Amex PRG opened Nov 2014 -- No preset spending limit
Chase Freedom Nov 2014 -- $4000
Bank of America Cash Rewards Nov 2014 -- $2500

p51
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Location: Boston, MA

Postby p51 » Sun Jan 11, 2015 7:26 am

ingramjuan wrote:if not mistaken, and hope someone correct me I think if you close the card it will still show on your credit report as your oldest card for 10 years.


Thank for the reply. I didn't want my credit profile to look or too thin or hurt my utilization if I closed this account. Definitely want to 86 this card
Capital One secured opened May 2012 -- $1401 ($1200 of my own money to increase limit) I will be closing this as soon as I qualify for an AMEX Simply Cash business card (hopefully this summer).
Amex PRG opened Nov 2014 -- No preset spending limit
Chase Freedom Nov 2014 -- $4000
Bank of America Cash Rewards Nov 2014 -- $2500

takeshi
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Postby takeshi » Mon Jan 12, 2015 10:02 am

p51 wrote:What will be the repercussions if I close the Cap One, which is by far my oldest card account.

Utilization is immediately impacted since the credit line is no longer available to you., You can do the math to determine the impact. As stated, AAoA is not impacted until the account falls off reports which is typically 10 years after closure. AAoA factors both open and closed accounts one one's report.

p51
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Postby p51 » Wed Jan 14, 2015 9:08 am

takeshi wrote:Utilization is immediately impacted since the credit line is no longer available to you., You can do the math to determine the impact. As stated, AAoA is not impacted until the account falls off reports which is typically 10 years after closure. AAoA factors both open and closed accounts one one's report.


Thank you for the clarification!
Capital One secured opened May 2012 -- $1401 ($1200 of my own money to increase limit) I will be closing this as soon as I qualify for an AMEX Simply Cash business card (hopefully this summer).
Amex PRG opened Nov 2014 -- No preset spending limit
Chase Freedom Nov 2014 -- $4000
Bank of America Cash Rewards Nov 2014 -- $2500



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