LET'S TRY THIS AGAIN!!!!!

[CreditBob]

When I was last talking about positive closed accounts and if they affected the fico score, here is another way to put it. After I have paid an installment loan or auto loan in full, the account is reported with zero balance and paid in full. After making two years to six years of payments (fulfilling the financial obligation), does it still have a impact on the score? I am not talking about closing a credit card account. After a car loan or personal loan is paid in full, then that account remains on the report for ten years. Will this still impact the fico score?

[Junejer]

Hi CreditBob. Yes it will. It will help your avg. account age, as it ages. However, if you don't have any other installment loans, then it will affect your credit mix negatively.

Message Edited by ByrdMan on 04-15-2008 09:06 AM

[Anonymous]

It's needed to fill a required area. As long as it stays you keep the points. But in 10 years when if falls off, so do the points gained. However it still ages even when closed and $0 bal earning avg age points for the next 10 years. Then it falls off and you loose all that was gained. But by then you should have other accounts to replace it. It seems unfair that accounts fall off after 10 years.