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Posted in Student Loans
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Question By
Gregalex523

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Paying off student loans to increase average account age?
My average age of accounts is 1.42 years but my oldest account is 4.5 years( a student loan) and my newest accounts are a few months(credit cards). I have a total of 18 accounts (17 open + 1 closed), 9 of which are student loans.

Would paying off and closing the latest of the student loan accounts( 3 opened in 2013) increase my average age of open credit and therefore increase my score?

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age of accounts shouldn't primary

paying off the accounts with the highest balances and highest interest rates should be you primary goal. Age of your accounts only accounts for about 10% of your score. I would think that lowering the amount of debt should be your first goal. paying them off will lower your available credit, thus your score will probaly drop at first  Lowering the total amount you owe will do more to raise your score in the long run.

Good luck

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The age of your credit accounts is 15% of your credit score.  35% is payment history, 30 % is utilization, 10% mix of credit and 10% inquiries.  Have you thought about consolidating your Federal Student Loans?  That would help your utilization and may save on interest.  You may also qualify for deferment or forebearance and pay nothing on income based plan.  Call Crest at 469-619-0644 to see if you qualify, no cost to find out and may save you tons.

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