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Worst 8400 I've spent in a while

Valued Member

Worst 8400 I've spent in a while

So I've been working on my credit in general and decided to pay off the remainder of my student loans,which the remaining balance was $8,400. I use this site and the credit karma app as well. The credit karma app lowered my score by 22 points and also changed my length of open account avg to an F. My student loans (8 of them) were all 6-9 years old and added a lot of account history. It alsat spy's I have no open installment loans anymore which I take is a bad thing. I'm kicking myself thinking I should of kept paying the minimum and milked them for another 5 years. Smiley Sad

9 REPLIES
Super Contributor

Re: Worst 8400 I've spent in a while

Credit karama provides FAKO scores so they can be ignored as well as the advice they give to improve them.  PIF'ing any loan as always a good idea even if you loose some FICO points.  Focus on the main issues on your CR to improve your FICO score. 

10/17/2017 FICO: EQ 829 TU 830 EX 826
Valued Member

Re: Worst 8400 I've spent in a while

I understand, but my main problem is AAoA and paying them off just got rid of my 8 oldest accounts.

 

Established Contributor

Re: Worst 8400 I've spent in a while

It is still better for the long range goals, even if short term suffers to pay off your debts. The Fico algorithm also factors in longevity of minimal debt as well.It just does not seem to effect the scores as rapidly. It's kind of like keeping your car clean, do it weekly instead of annually and you don't notice it so much.

Starting scores 01/02/2012 EQ 707(Fico) TU 733(Fico)XP 735 (FAKO)
Updated scores 05/01/17 EQ 824, TU 812 EXP 810 (all Fico scores) Remember the Three P's: Pay early in Full, Pay on Time, Patience
Valued Contributor

Re: Worst 8400 I've spent in a while


Hortilux wrote:

I understand, but my main problem is AAoA and paying them off just got rid of my 8 oldest accounts.

 


FICO still calculates your closed accounts for AAoA.   Your AAoA didn't change as far as FICO is concerned.

EX:694 TU:744 EQ:777
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Moderator Emeritus

Re: Worst 8400 I've spent in a while


Hortilux wrote:

So I've been working on my credit in general and decided to pay off the remainder of my student loans,which the remaining balance was $8,400. I use this site and the credit karma app as well. The credit karma app lowered my score by 22 points and also changed my length of open account avg to an F. My student loans (8 of them) were all 6-9 years old and added a lot of account history. It alsat spy's I have no open installment loans anymore which I take is a bad thing. I'm kicking myself thinking I should of kept paying the minimum and milked them for another 5 years. Smiley Sad


As Marty said ignore the CK scores and advice. CK only factors open accounts into AAoA whereas FICO includes both open and closed accounts. FICO also includes closed accounts into your credit mix.

 

And I also agree with Dave that you won't lose the AAoA or credit length history on those paid off, closed accounts.

 

And last but certainly not least paying down/paying off debt should always be your #1 goal.

 

 

Established Contributor

Re: Worst 8400 I've spent in a while


Hortilux wrote:

I understand, but my main problem is AAoA and paying them off just got rid of my 8 oldest accounts.

 


To add to MarineVietVet and DaveSignal, these accounts will remain on your credit report for 10 years from when they are paid off... 

Blogger

Re: Worst 8400 I've spent in a while

You are doing a LOT of worrying over a LOT of nothing.

A bunch of people wish they were in your position, right about now.

Follow my financial journey: http://www.frugalrican.com


EQ FICO (01/16/2012): 656 - EQ FICO (02/16/2012): 743 - EQ (02/24/2012): 760 - EX (04/28/2012): 739 - GOAL 2013: 800+

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Super Contributor

Re: Worst 8400 I've spent in a while


FrugalRican wrote:

You are doing a LOT of worrying over a LOT of nothing.

A bunch of people wish they were in your position, right about now.


This!!!

 

Even if your score drops a little bit, think about that debt you just got off your shoulders. I'd be willing to let my score drop a couple of points if it meant that all my loans were PIF'd and I didnt owe anyone money anymore. 

Valued Contributor

Re: Worst 8400 I've spent in a while

My DGF owes 76.2k

 

I think she would gladly traid you. 

5/2012: 560 credit scores across the board
12/2014 750+
3/2017 780+
5/2017 800+