Closed Cards and AAoA

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sakhalin
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Closed Cards and AAoA

Postby sakhalin » Mon Aug 05, 2013 3:21 pm

So what exactly happens when a card is closed? I heard that it does not immediately impact your AAoA since it can stay on your report for up to 10 years. Is this true?

Macy's closed my card due to inactivity. As it is one of my older cards, my AAoA immediately dropped by six months when I checked on Credit Karma. I did not get any new accounts... :confused:
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MemberSince99
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Postby MemberSince99 » Mon Aug 05, 2013 4:15 pm

Well that proves in the CK model it continues to count in the AAoA. In the CK model, inquiries affect your score for a full two years which differs from the FICO model of one year. I know that because I saw my score jump because an inquiry fell off after two years on CK.

So what FICO is doing (which is honestly all that matters) may be different - you'd have to check your score with them to see if it works the same way.

I would not worry in the least about what CK says in terms of score or advice - a lot of their advice is bad/wrong.

DA SLY 1
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Postby DA SLY 1 » Mon Aug 05, 2013 6:33 pm

And also keep in mind that CK only keeps track of open accounts, vs closed accounts. So hence the reason for score drop. OP , these are FAKO scores and not IMO reliable.
FICO, on the other hand keeps track of closed accounts good or bad for 10 yrs.
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sakhalin
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Postby sakhalin » Tue Aug 06, 2013 3:07 pm

Awesome, thanks for the information guys.
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flan
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Postby flan » Tue Aug 06, 2013 6:13 pm

DA SLY 1 wrote:And also keep in mind that CK only keeps track of open accounts, vs closed accounts. So hence the reason for score drop. OP , these are FAKO scores and not IMO reliable.
FICO, on the other hand keeps track of closed accounts good or bad for 10 yrs.


Well bad information is not allowed to be furnished to consumers of credit reports after 7.5 years. Good information can be reported for ever. Ten years is commonly when the credit bureaus stop providing it, but it will vary. Not all lenders care about old closed accounts; what you did five years ago is not a terribly good predictor of what you'll do in the future.



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