@Anonymous wrote:
will paying off my student loan help raise my credit score, or should i continue to pay it monthly?
What is the interest rate on your school loans? That would be the key decision point for me.
Many people think there are valid reasons to keep paying on your school loans if they are at VERY low interest rates...
*You could invest or save what you normally would spend in extra payments (Do you have an emergency fund, for example? Could it mean that you could put more money into your retirement funds or 401k for long-term growth? Are you maxed out in your retirement contributions? Have you contributed the max to your ROTH if you qualify?)
*Tax deduction for interest...could this deduction make a difference in tax bracket for you?
*If you work for a nonprofit (or some other entities), the remaining balance of your school loans can be forgiven after 10 years
*If you die, your balances due die with you
Paying off your school loan debt will not likely raise your FICO scores, and there are many aspects to consider.
If being debt-free is important to you, that's an important aspect.
Bottom line is that there is no one right answer for everyone.
