How Age of Closed Account is considered for CIBIL score?

67°
Deal Newbie
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I want to close my oldest FD based Credit card and get an unsecured one from the same bank.

I just fear for the significant drop in CIBIL score.
I do have account prior to it, but all of them were consumer loans, which are closed now.
So age/payment history of CLOSED accounts is also considered for computation OR only ACTIVE accounts are considered for the same?

*Onescore is showing the Age data considering first opened(closed) account also.

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Your cibil drops with new enquiry temporarily then recovers in 2 months.
I have closed 2 of my cc earlier, didnot face any permanent drop in cibil, whatever it is will be for couple of months

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Just make sure you dont add/Close lot of accounts in short time…
closure/addition impacts CIBIL but it gets recovers in 3-4 months

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Age of credit account in cibil is calculated as the “oldest active credit account”; it can be anything, a credit card, a loan; but it has to be in “active” status; if you close your oldest active credit, then the next active one becomes as the oldest and if the age difference between them is noticeable then your cibil score is gonna a take a toll and drop significantly; Hence it’s not suggested to close your oldest account in general; however if the 2nd active account is nearly of similar age then not much of an issue;
In your case, I assume right now you have only 1 active credit right now, so ideally your cibil will be impacted; in such case I personally will suggest that first you apply for the new unsecured credit card (so that it uses the current decent score), and then close your fd based one (if it’s really necessary); however if the bank is asking you to close your fd based one first and then apply for the unsecured cc, then I guess you don’t have much option.
Tagging @guest_999 for an alternative opinion if any.

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No option, best you can do is improve your cibil to at least 790+ so that even after the drop it stays above 760 & should be able to recover in next 4-5 months.

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Keep your report clean, the score changes with every version, for every bank

The age of credit card would only enable the lender to see your past history, well past the 3 years algorithm, which CIBIL takes for calculating the score as per V3. Other than that it has minimal effect, if any.

My CIBIL is stuck since the past 3 years at 784-787 & just doesn’t move no matter what i do.

Closing multiple high CL cards dropped it from 787 to 784 last year & now it’s back to 787.

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No impact , in fact my simulation shows my credit score will rise by 12 points if I closed my oldest card

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@BlueFlash @guest_999

The next oldest is 9 months old(which I also flipped to lower Variant last week due to high annual fees, let’s see how RBL reports the new variant) and this FD one is 14 months old.

The limit on FD one is tiny and I believe Kotak will offer me a good limit for Unsecured one after closing, as they have already given me a pre approved DC EMI limit of 2 Lakhs.

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BlueFlash wrote:

Age of credit account in cibil is calculated as the “oldest active credit account”; it can be anything, a credit card, a loan; but it has to be in “active” status; if you close your oldest active credit, then the next active one becomes as the oldest and if the age difference between them is noticeable then your cibil score is gonna a take a toll and drop significantly; Hence it’s not suggested to close your oldest account in general; however if the 2nd active account is nearly of similar age then not much of an issue;
In your case, I assume right now you have only 1 active credit right now, so ideally your cibil will be impacted; in such case I personally will suggest that first you apply for the new unsecured credit card (so that it uses the current decent score), and then close your fd based one (if it’s really necessary); however if the bank is asking you to close your fd based one first and then apply for the unsecured cc, then I guess you don’t have much option.
Tagging @guest_999 for an alternative opinion if any.

🤣

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