Quote:
Originally Posted by poundwise
Yep.
It should also be pointed out that the general view that closing card accounts is bad is:
(a) often wrong because of the fact that closing some cards will raise your average age of accounts
(b) often wrong because too many open accounts can be viewed as a negative (especially true of mortgage lenders)
(c) often right; however, the lowering of the score that happens is a temporary, short-term effect
My view on it is this... keep the cards you want (giving some preferential consideration to the oldest one or two) and ditch the rest. Don't try too hard to manipulate the score. What ends up happening is the score manipulates you.
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Poundwise, can you explain to me what point (a) means. What is the "average age of accounts" and how does it apply in business or credit terms? Someone else posted something similar to what you posted but I have never heard anything about the age of accounts mentioned; not in literature I've read or any class I've taken on campus thus far.