sometimes paying off a loan and immediately getting a new loan makes you more of a risk not less of one.
I think stuff like this is more credit age, student loans are usually the oldest accounts a person will have and resolving that will make your average account age go down.
Possible, especially because there are many different scores, I.e. I believe a car dealers often use a different score than say mortgage underwiters.
But I haven’t had a installment loan of any kind on my credit report for several years and my “average age of accounts” is still reported as excellent. Some revolving accounts in there, but my understanding was that closed accounts don’t leave your report for several years, and continue to count for your average age metric.
There is usually a small penalty for not having “enough types of credit” (if you are like me and don’t have any installment loans), but the reporting sites seem to say that it doesn’t affect the score much, and it took quite a while before they started reporting that as a problem.
I think stuff like this is more credit age, student loans are usually the oldest accounts a person will have and resolving that will make your average account age go down.
Possible, especially because there are many different scores, I.e. I believe a car dealers often use a different score than say mortgage underwiters.
But I haven’t had a installment loan of any kind on my credit report for several years and my “average age of accounts” is still reported as excellent. Some revolving accounts in there, but my understanding was that closed accounts don’t leave your report for several years, and continue to count for your average age metric.
There is usually a small penalty for not having “enough types of credit” (if you are like me and don’t have any installment loans), but the reporting sites seem to say that it doesn’t affect the score much, and it took quite a while before they started reporting that as a problem.