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@CreditBob wrote:It takes 12 months of payments before the account is no longer considered new. It takes 4 months (48 months) of payments to have an account established. For example on a vehicle loan do not pay on a vehicle loan for 6 months to a year. Go 4 years of apymenst on it. 30% of your fico score is your balances. So if you have paid off a car loan there is no balance to be factored into the score. The one things that keeping an auto loan on a credit report will do is make it easier to get another car loan. Then it will show other future creditors that you are a lesser risk to them.
@haulingthescoreup wrote:
@CreditBob wrote:It takes 12 months of payments before the account is no longer considered new. It takes 4 months (48 months) of payments to have an account established. For example on a vehicle loan do not pay on a vehicle loan for 6 months to a year. Go 4 years of apymenst on it. 30% of your fico score is your balances. So if you have paid off a car loan there is no balance to be factored into the score. The one things that keeping an auto loan on a credit report will do is make it easier to get another car loan. Then it will show other future creditors that you are a lesser risk to them.
Yes, but those paid-off loans contribute to your overall length of credit history, do they not? Just as closed credit cards stay on your reports for 10 more years, and help your length of credit history. I suspect that's part (not all) of the difference in OP's EX score and the other two.
And there's something I'm not understanding here: "on a vehicle loan do not pay on a vehicle loan for 6 months to a year." Ummm... wouldn't that make the lender a bit irritable?