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CreditGurl2006

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Payment History vs Age of Accounts
I am considering closing two older accounts but I am unsure of how it will affect my credit score. The reason why I would like to close these accounts is because of their late payment history. Closing both accounts will increase my payment history but will decrease my average account age. Will I end up with a higher credit score, break even, or have a lower score as a result? One account has 8 past due payments and the other has 2. One account is 8 years old and the other is 7 years old. If i close these account my average account age will probably go from 3 years to 1 year.

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Closing will not increase or improve Payment History.  The Payment History for the accounts will remain the same even after they're closed.  If you want to improve Payment History then you need to contact your creditors to see if they will perform a goodwill removal of the derogatory payment history information.  However, they are under no obligation to do so if the information is correct.

Closing will also not decrease your Average Age of Accounts (AAoA).  Opening new accounts is what reduces your AAoA.  Closed accounts will continue to show up on your reports for typically 10 years and will continue to age and factor into AAoA.

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