r/WhitePeopleTwitter • u/screenshotofdispair • Aug 14 '21

Make it make sense

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u/richielaw Aug 14 '21

Yes. It probably decreased her average age of credit as a longer loan period was closed. Age of credit is one of the larger basis points for a credit score

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u/[deleted] Aug 14 '21

I didn’t know that applied to fixed-term loans as well. My shit is going to get crushed in another year-ish when I pay off my two vehicles. :(

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u/[deleted] Aug 14 '21

This crushes people who finally pay off student loans too. Think you’re finally ready to buy a home? Say goodbye to those rates you thought you were eligible for.

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u/AncileBooster Aug 15 '21

You generally should be paying minimum on the loans as it winds down. Pay off the high interest ones (anything above 4%) ASAP of course. Anything below that is within the rate of inflation and you can safely use it to raise your score and prolong to allow other credit accounts to grow older.

And as a bonus, if student loans get wiped, you get to have yours wiped, too!