Account turning 2 years old any credit impact?

[Iusedtolurk]

Hi everyone,

Question...Do you get any points when an account ages 2 years?  I have an installment loan aging 2 years next month but I am thinking of paying it off now at 1 year 11 months.

Would that make a difference if I paid it now or should I just pay it off next month.

The reason is I get money out of the account when its paid off and it takes maybe 3 weeks to get it.

I rather start the 3 week clock now than having to wait until the middle of next month to start the 3 week clock.

Thanks

[Anonymous]

Not sure how it works for installment loans, but when my CC turned 2 I noticed a couple point increase.

[Girlzilla88]

If your full term was 2 years I would wait it out BUT if is like a 3 year or so and you are paying it off early regardless just go ahead and end it now

[Iusedtolurk]

---

@Anonymous wrote:

Not sure how it works for installment loans, but when my CC turned 2 I noticed a couple point increase.

---

Well in that case I have a credit card turning 2 years old next month so I guess if I pay off the loan at 1 yr 11 months and lose a possible 2 points I will break even. I'm just going to use the majority of the money on paying down some cards to reduce utilization and will gain some more points anyway. I was just wondering if there was some major impact in the scoring for that particular scenario.

Thanks for the data.

[Iusedtolurk]

---

@Girlzilla88 wrote:

If your full term was 2 years I would wait it out BUT if is like a 3 year or so and you are paying it off early regardless just go ahead and end it now

---

Yes @Girlzilla88 the full term is 2 years. Why do you say you would wait it out? What would be the benefit?

I almost decided to go and pay it.... now I'm hesitant due to your suggestion.

[Girlzilla88]

It reflects better on you you waited your whole Term plus you are only 1 month away anyways so why would you pay it out early I know you said to start the 3 weeks that I do get but for people that will review your information in the future it reflects good on you that you made great payments over longer periods of time so it will reflect better on you.    Plus it will hit a year mark (2 year) if like I said it was a 3 year term/4 year etc and you paid it off 1 year 11 months that isn't as big of a deal people love to see paying off early but if you ride it out this long you might as well get the full benefit        Just my 2 cents though

[Iusedtolurk]

---

@Girlzilla88 wrote:

It reflects better on you you waited your whole Term plus you are only 1 month away anyways so why would you pay it out early I know you said to start the 3 weeks that I do get but for people that will review your information in the future it reflects good on you that you made great payments over longer periods of time so it will reflect better on you.    Plus it will hit a year mark (2 year) if like I said it was a 3 year term/4 year etc and you paid it off 1 year 11 months that isn't as big of a deal people love to see paying off early but if you ride it out this long you might as well get the full benefit        Just my 2 cents though

---

Yeah@Girlzilla88 , I've decided to wait and just pay it next month. Get the 2 year status on it and whatever else I get.

This decision(let me make this perfectly clear) had absolutely, positively, no consideration of what you said

[Remedios]

Lets start this over 

Unless there are some other changes, there are no gains when card reaches two years of age. If there is a change, look elsewhere for reason such as utilization change, AAoA change etc...

Loans do not work that same ways. Points are gained as you pay down the loan, with biggest gain happening when loan balance falls below 9%

Most people experience points loss when loan is paid off if that's their only "optimized" (below 9%) loan. 

Paying early might save you a few dollars on interest, but it doesnt show lenders anything. 

Whether future applications are reviewed manually or computer makes a decision,  early pay off will not benefit or harm you. Everyone wants to make sure that it got paid, not if took you 23 vs 24 months.

You do whatever you feel is right for your situation. 

[satio]

+1 ^^^^ I concur with Remedios.

[Anonymous]

+100 What Remmy said.