- Centurion Member
- Posts: 1067
- Joined: Thu Aug 04, 2011 7:07 pm
- Location: Phoenix
Closing the account will not effect your Average Age of Account. Even closed accounts (good or bad) are factored into the AAOA caluclation (until they run their course and fall off your bureau-usually after being closed for 10 years). Where it will effect your credit is with your open to buy/debt to credit ratio. But honestly, it really won't as the $250 credit limit loss won't hurt you at all (unless you are maxed out on Citibank).
As you pointed out, Capital One has, for the past few years, not been giving increases on their rebuilder cards. Some people on another credit board have been reporting small, but impressive (for Cap One) credit line increases and there are whispers that Capital One is reviewing their CLI proceedures; however, if the card is no longer benefiting you, and has a very small chance at growing with you, then you may as well close it.
If you decide to open a new account to replace Capital One, that will lower your AAOA...however, at your stage in the credit game..it won't kill you.