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Will paying off your student loans lower your FICO?

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Anonymous
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Will paying off your student loans lower your FICO?

Just curious. Am thinking about using a bonus to pay off a big chuck of my student loans. Will this hurt my FICO? I am planning on applying for new student loans very soon. Thanks
Message 1 of 5
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Anonymous
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Re: Will paying off your student loans lower your FICO?

What is the APR on your current loans?

Grabbing at straws-
Will new loans be at a higher APR?
Would you be better off pay for the new schooling in cash? Instead of paying the old loans?
Message 2 of 5
Anonymous
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Re: Will paying off your student loans lower your FICO?

 



Message Edited by kpaul212 on 12-13-2007 06:47 AM
Message 3 of 5
Anonymous
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Re: Will paying off your student loans lower your FICO?

I want to know the anwer to the points question cause I might be in a similar boat but I guess the info Timothy is hinting at is what amount are you taking the new loan out for and is your bonus more than this so that instead of getting a new loan and paying off the old one ...  you can just keep paying this old loan as you were and use cash in place of a new student loan.
 
Still curious about the effect of closing out new student loans by paying them off quickly.
Message 4 of 5
Anonymous
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Re: Will paying off your student loans lower your FICO?

You will most likely NEVER see a 5% loan after you pay this off-

Make you payments on the current loan(s), stick the $ in savings/pay off any revolving debt, in April-Take any grants you can get and pay as much in cash as you want, take an additional loan if you need to.

The math on this alone - don't it off
FICO wise- don't pay it off.



@Anonymous wrote:
My current ones are at about 5% which is not that bad (total $14k). I was just thinking about getting rid of the debt. The ones that I will be aquiring around April, will probably be around 10% Should I just make the minimum payments now, until I take out the new loan, or if I pay off the entire loan now, will my fico drop to the point my new loans APR will be significantly higher?



Message 5 of 5
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