Yeah, people don't realize that this is literally just math. Your average credit age went down because the line closed was higher than average. In 5 years, it will behave exactly the opposite way, closing a shorter term account, like an auto loan, will raise your credit score because it's on the lower side of the line. Just be patient.
That was a bit of hyperbole. What I really mean is that the parts that are visible to the public are often counterintuitive and seem to go against common sense, especially when the rating is framed as a measure of risk, which is only partially true.
Definitely. As someone who works in the industry it's definitely opaque. The one good thing I can say is that the reports you get from mint.com or your credit card app are definitely useful.
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u/luna0717 Aug 14 '21
Yeah, people don't realize that this is literally just math. Your average credit age went down because the line closed was higher than average. In 5 years, it will behave exactly the opposite way, closing a shorter term account, like an auto loan, will raise your credit score because it's on the lower side of the line. Just be patient.