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Question By
MichaelintheLBC

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946 People Helped
Why does closing (paying off) a loan lower "payment history" and "age of credit history"?
I paid off one of my many student loans, and Credit Karma shows that both my "payment history" and my "age of credit history" had lowered. In my case, that actually hurts, although it is nice to have one less student loan to payoff.

Payment History - did this go down simply because the account was closed? Because my "on-time" payments are no longer included in the calculation, my "on-time" payment % went down...

Age of Credit History - again, did this go down as direct result from my loan being reported as closed? My student loans are actually my oldest accounts! I've only recently opened a credit card account. If that is the case - would it be beneficial to sort of stretch out 'closing' some of my student loans, until my newer accounts age a little?

I appreciate any/ all advice, in advance. Thank you!

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