Paying off Student Loan early (Sallie Mae)

[TerminaterJohn]

I have a Sallie Mae Subsidized Student Loan Account that I received in 2012. I have nearly paid it off in June 2014. But it states that since I made early payments, I can leave it open until 2021. This only thing is the interest will still accumilate. But since the principal is so low, it really wouldn't matter. Should I leave this account open for as long as possible and how does this affect my credit score? I've heard that leaving an installment account open for as long as possible mixed with other credit is great for you credit history.

[SCF]

Do you have any other installment loans?  How many other open accounts do you have on your report?  I would pay the loan off, the positive history will continue to report for 10 years, which is plenty of time for you to open new tradelines to take its place.  If it is your only installment loan, you might lose a few points for not having that in your credit mix, but unless you are trying to meet a score target for a specific reason, it won't really matter.

It's awesome that you've paid your loan off so early.  Now you have a chance to focus on paying down other debt, or saving to meet a goal.  As long as you continue to use credit responsibly in the meantime, closing this one loan won't hold you back from anything in the future.

[TerminaterJohn]

I did have 8 other installment loans (Student Loans from Sallie Mae), but I paid them off fully. this was from years 2013 to 2014. the only other open accounts I have on my report are my Nuvision Credit Card with a limit of $2,000 and an American Express Charge Card. This is why I want to leave an installment account open so I can mix up my credit. I really don't want to open a car loan because I have a perfectly fine car with no car payment. So I want to pay as little money as I can by having mixed credit. please advise. Thank You.

[SCF]

I would pay off this loan and then get another credit card or two since you aren't planning on getting another loan in the immediate future.  By the time you get ready to apply for a car loan or mortgage, you should have a strong enough profile without the credit mix.  The mix is a small part of your score - only 10%.  Credit should serve a purpose, and be a tool to help you reach your financial goals.

[TerminaterJohn]

Okay, will do. I 'll just pay off the difference. Thanks again for your help. I can't wait to keep on being responsible and then get a great rate when I'm ready to purchase either a car loan or home in the future. Responisibility is key!! Thanks again!!!!