Yes; whether closing the Navy SSL would hurt you depends on the current balance on the other installment loan.
Second question: NO. Closed accounts in good standing continue to contribute to age metrics.
@growthadvocate wrote:In 08/2020 I took out a $20,000 SSL for a 60 month term. At the time I had a thinner file and didn't have any installment on my file. It was a text book play, and I got a great boost. Since then I took out a $25,000 personal loan on a 48 month term in 3/2021. These are the only 2 installment accounts that I have on my file.
My SSL has a balance of roughly $800. I make a very small payment each month, so that the account is active. The personal loan has a balance of approximately $20,000.
In an effort to optimize my scores and file, I have a few of questions.
**The primary question is, should I payoff the SSL, now that I have the other personal loan open...or keep it open?
No you should not pay it off until your personal loan is down to a balance of $2200.
*Does the overall utilization of open installment accounts combine?
Yes. In fact it is only the aggregate that counts in scoring.
If so, I assume that closing out the SSL would hurt me.
It might not hurt that much at the moment, because your aggregate is still well over 10%. But it wouldn't be good down the road.
*Does an account stop increasing your average age of account once it's closed?
No, it continues to be factored into your AAoA as long as it appears in your reports, which is typically for another 10 years after being closed.
I've read heard arguments to both sides on this.
There are no "arguments" on the other side. FICO counts closed accounts as long as they appear in your reports.
Not sure what's true.
What we tell you is true
My AAoA isn't great. Equifax and Experian are both just shy of 2 years. Transunion is nearly 6 years, and my highest score of course. Scores currently range between mid to high 700's.
Any insight is greatly apprecaited!
