Closing oldest education loan account same as closing the oldest credit card?

[RevEng]

Will the credit history age reduce if I close an 8 year old education loan account? Impact of prepayment credit score?
The only other credit history I have is 2 credit cards, both are less than 1 year old.

 

[V360V360 is verified member.]

Will the credit history age reduce if I close an 8 year old education loan account? Impact of prepayment credit score?
The only other credit history I have is 2 credit cards, both are less than 1 year old.

Bro - why will you think about impact on credit history when you are saving money on interest payment for education loan - assuming educations loans are usually huge in terms of loan availed.

Even if there is a drop by few points, it will recover in the next few months.

 

[iAmPm]

Yah it will reduce your credit age because it won't be counted in calculating average history once you close that loan.

But this should not be the reason to not prepay your loan given that current interest rate. Anyhow now or couple of years down the line this will get close so my suggestion would be, Don't think about credit score much and complete your edu loan asap.

 

[SiddharthR]

What is Credit age?
Paisabazzar showing ~5Y
One Score showing ~11Y
Which is more accurate?

 

[V360V360 is verified member.]

What is Credit age?
Paisabazzar showing ~5Y
One Score showing ~11Y
Which is more accurate?

Please check on CIBIL Transunion.

 

[SiddharthR]

Please check on CIBIL Transunion.

5Y ago, was my first CC which is still active
11Y ago, was my first loan which was closed in a year
So, which can be considered as credit history/age?

 

[zaid_2913]

5Y ago, was my first CC which is still active
11Y ago, was my first loan which was closed in a year
So, which can be considered as credit history/age?

Oldest Active Account will be considered, in your case 5 years.

 

[Credit Karma]

Will the credit history age reduce if I close an 8 year old education loan account? Impact of prepayment credit score?
The only other credit history I have is 2 credit cards, both are less than 1 year old.

Go ahead and close the edu loan. In any case, this will reduce your unsecured loan, (assuming you have not pawned anything to get it) and thereby increase your score in coming months.

 

[RevEng]

I closed the loan in March and CIBIL has increased dramatically since because of zero liability (695 to 778).

Anticipated it to drop after few months but fortunately it didn't.

Credit age/history is still being calculated based on this closed account (~9 yrs).

 

[srikant]

Please check on CIBIL Transunion.

The CIBIL report isn't telling the average age - it just tells the score and the starting date of each running credit line.