Part 2 – Risks to Closing Accounts to Improve Your FICO score
The second reason closing accounts could hurt your good FICO score or might not help you improve your FICO score is your credit history. Your Credit History makes up 15% of your FICO score. If you think you are going to improve your credit mix by closing mix you could hurt this.
Your credit history is weighed into your FICO score on two different factors. They are the average age of your accounts and the age of your oldest account. First, if you close accounts you could change the average age of your accounts. Things like closing old accounts will hurt and has a chance of hurting a good FICO score. Second, if you close your oldest account because you don’t know what you are doing this could the really injury the second factor. This will also skew the average age of your accounts.
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