Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!

Question

Posted in Credit Scores
Profile Image

Question By
BriannaR

1 Contribution
0 People Helped
Age of credit: Is it best to keep renewing instead of paying a loan off allowing it to close?
Trying to understand this age of credit since it does impact my credit score, I have been paying off loans and sometimes open a new one. But does that start my "age" of credit over? should I just keep renewing the loan instead of paying it off allowing the acct to close? I want to make sure I am doing this right so it will impact my score positively

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW
All Responses

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
784 Contributions
297 People Helped

Constantly opening a new loan is not necessarily a good thing and can make you appear desperate. You're paying interest on it so that's wasted money. I would suggest opening a credit card, using no more than 30% of the limit, and pay it in full every month so no interest is charged to you. Lenders like to see a mix of accounts on your credit.Your credit age doesn't start over. All the loans show up on your credit. I don't know what yiur credit score is. As a rule, don't open a loan unless you need it. 

Top Contributor
784 Contributions
297 People Helped

Your credit age doesn't start over. Your credit report will show the various loans, providing the lenders report them. I would avoid taking out loan after loan. Lenders like to see a variety of accounts on a credit report always paid on time. By taking out constant loans, you're paying interest and possibly appearing desperate to lenders that you need money and don't live within your means. I would suggest opening a credit card account. Use it wisely, use no more than 30% of the card limit. Pay it off every month on time, before interest accrues. I don't know what your credit score is. There are so many cards available which can offer you cash, reward points, or airline miles. 

Results 1-2 of 2Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.

SIGN UP NOW

Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.