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Student Loan Balance to Original Amount Question

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arthompson3529
New Contributor

Student Loan Balance to Original Amount Question

I am paying off my last student loan. It is in good standing.

My total amount is $5570
I still owe $2943

If I make a payment of $200 now to bring that balance below 50% of original to balance, will it impact my credit score at all?

Thanks!!!
In the garden as of 07/15/14 - a baby seedling
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SCF
Valued Contributor

Re: Student Loan Balance to Original Amount Question

Probably not - it might change a point or two, but the change might actually have more to do with your accounts aging and another month of good payment history.  Utilization on installment loans is a very small portion of your FICO score.

 

Paying down your loans as quickly as you can still makes good financial sense though, you'll save interest and be debt free that much sooner.  Congrats on being halfway done!

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