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Closing oldest education loan account same as closing the oldest credit card?

RevEng

TF Select
Will the credit history age reduce if I close an 8 year old education loan account? Impact of prepayment credit score?
The only other credit history I have is 2 credit cards, both are less than 1 year old.
 
Will the credit history age reduce if I close an 8 year old education loan account? Impact of prepayment credit score?
The only other credit history I have is 2 credit cards, both are less than 1 year old.
Bro - why will you think about impact on credit history when you are saving money on interest payment for education loan - assuming educations loans are usually huge in terms of loan availed.

Even if there is a drop by few points, it will recover in the next few months.
 
Yah it will reduce your credit age because it won't be counted in calculating average history once you close that loan.

But this should not be the reason to not prepay your loan given that current interest rate. Anyhow now or couple of years down the line this will get close so my suggestion would be, Don't think about credit score much and complete your edu loan asap.
 
Will the credit history age reduce if I close an 8 year old education loan account? Impact of prepayment credit score?
The only other credit history I have is 2 credit cards, both are less than 1 year old.
Go ahead and close the edu loan. In any case, this will reduce your unsecured loan, (assuming you have not pawned anything to get it) and thereby increase your score in coming months.
 
I closed the loan in March and CIBIL has increased dramatically since because of zero liability (695 to 778).

Anticipated it to drop after few months but fortunately it didn't.

Credit age/history is still being calculated based on this closed account (~9 yrs).
 
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