Impact of an Auto loan (Credit age, utilization and total accounts)

[Anonymous]

Hi All
I have only 3 cards and 1 auto loan.
The autoloan is only 18 months old. It looks like it is impacting my Credit Age.
I think it helps as it is a different type of loan.
In order to close, I need to invest around $8000.
But somehow, when we see utilization, it is showing only Credit Card balances, but not auto loan balance amount.
How it will impact, if I close my auto loan
a) Credit Age
b) Utilization
C)Total open accounts or different types of accounts.
Can someone please help me with your analysis on this. Do I need to payoff the loan or keep it.

[Anonymous]

If you pay off your only installment loan, your FICO scores may actually DROP.  You always want to have one installment loan reporting open and preferably under 8.9% left to pay.

Many of us use the Alliant SLL Technique to keep a perfect loan reporting for 5 years -- see my "11 rules" signature link for details.

What was the original loan amount?

[Anonymous]

Thanks for your quick response.
I am in a tricky situation. My total loan amount is $20K.
If I need to bring it down to 8.9%, then it will come around $1780
My monthly installment is $447. If I pay money and only keep $1780, then loan will be closed in 4 months.
Is there anyway to keep the loan continue by reducing the montly installment without refinancing?
I think if we refinance, then once again Credit Hard enquiry and new loan number etc.
I don't want those to happen (new loan number, credit hard enquiry etc which is not good for credit score).
Please suggest me.

[Anonymous]

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@Anonymous wrote:

Thanks for your quick response.
I am in a tricky situation. My total loan amount is $20K.
If I need to bring it down to 8.9%, then it will come around $1780
My monthly installment is $447. If I pay money and only keep $1780, then loan will be closed in 4 months.
Is there anyway to keep the loan continue by reducing the montly installment without refinancing?
I think if we refinance, then once again Credit Hard enquiry and new loan number etc.
I don't want those to happen (new loan number, credit hard enquiry etc which is not good for credit score).
Please suggest me.

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If the interest rate is good (below what you could get from investing that $8000 in your IRA/401K), then keep it. Scoring effects should not really be considered here - only the cost of the loan. The points gained by paying it to 8.9% is not going to be signifigant - probably 3-5 points in most cases.

If the loan is expensive, then pay it off, and get a small ($500) share secured loan for scoring purposes.

[Anonymous]

Here is my situation based on Credit karma
Transunion        
Score-678        
Credit card use    31    Y
payment history    98    y
Derogatory marks    4    R
credit age    6year 11M    Y
total accounts    12    G
hard enquiries    5    R

EF        
Score-679        
Credit card use    34    Y
payment history    98    y
Derogatory marks    3    R
credit age    6year 4M    Y
total accounts    12    G
hard enquiries    3    R

I can be added as an authorized user with couple of friends to improve my credit age and reduce my credit card usage also. Will it helps me?
I started paying bills on time.
I need to work on hard enquiries.
How much time it will take for me to get a 720 score?