- Centurion Member
- Posts: 538
- Joined: Fri Mar 09, 2012 9:29 am
- Location: San Francisco, CA
There are some misunderstandings on Average Age of Accounts. All accounts count including closed and open accounts. There is no hit from closing an account. BUT, in 10 years, closed accounts will disppear off your credit report.
So lets take the Original Poster as an example. I am assuming he has gotten his more recent cards within the last 5 months and the 13 month cap one card he wants to close. When he closes it, it will still figure into his AAoA. In 10 years from now, it will fall off, but by that time his other cards will have aged. You really get hurt closing cards when there is a big gap between accounts and you want to close one of the old accounts which is not the case here.
So that being said here is my advice:
1) Wait till the annual fee is due and close it before then. Why not get some more AAoA out of it since you have already paid the annual fee. Now if it was a really high risk card that charges monthly fees, I would have recommended to close it ASAP.
2) The original poster has 3 other trade lines. He has done a good job of getting better cards quickly (ones that will grow with him for a while which is the most important thing when starting off). If he only had 1 or 2 other trade lines, I would have recommended to keep the Cap One card open until he had 3 other trade lines which is ideal for building FICO (IMHO). Most likely in 6 months to 1 year, assuming the FICO score is there, he should think about some more ideal cards which will grow his CL and rewards.
Amex Centurion, Amex Platinum, Amex BCP 8k->24k (5/23/12), Amex TE 15k, Cap One 1.5% 15k->20k (8/7/13), CSP 25k, Chase Palladium 100k, Citibank AA 35k (AU), Firestone 1.8k->2.2k->2.4k (8/20/12), JFCU Jloc 30k, PenFed Plat Rewards 30k, SF Fire 30k, US Bank Cash+ 25k