Myth: When you close a credit card or pay off a loan, you lose the value of the account’s age in your credit scores.
Fact: As long as an account is on your credit reports
it is considered by credit scoring systems, open or closed and with or
without a balance. As such, if you were to close a credit card that was
opened 10 years ago it would still be seen and measured as a 10 year
old account. And, closed accounts continue to age so an account that was
closed 3 years ago is 3 years older today. As such, closing accounts
will not result in a reduction in your credit scores as a result of the
loss of the value of the account’s age.