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To pay off student loan or not?

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fhgirlmah
New Visitor

To pay off student loan or not?

Hi! I currently have a student loan that I can pay off this month, but I'm not sure if I should just leave a small balance on it to keep my account going. It is in deferment so I do not have to make payments on it until 2018. I would like to buy a car in the next few months, so I need the best FICO score I can get. I don't mind accruing a little interest if I can get a better rate on a car. Thanks!!

Message 1 of 4
3 REPLIES 3
SCF
Valued Contributor

Re: To pay off student loan or not?

The account will continue to report for 10 years if it is in good standing, and by the time it falls off, you'll have built up other accounts to take its place and maintain your score.  Go ahead and pay it off, save yourself the interest, you likely won't see any change in your score at all.

 

Even better, paying that loan will lower your debt-to-income ratio and make you a more attractive applicant for your car loan.

Message 2 of 4
ethan17debttackler
Regular Contributor

Re: To pay off student loan or not?


@SCF wrote:

The account will continue to report for 10 years if it is in good standing, and by the time it falls off, you'll have built up other accounts to take its place and maintain your score.  Go ahead and pay it off, save yourself the interest, you likely won't see any change in your score at all.

 

Even better, paying that loan will lower your debt-to-income ratio and make you a more attractive applicant for your car loan.


+1

>



Message 3 of 4
Luscher
Valued Contributor

Re: To pay off student loan or not?

Always pay off any debt when possible.
CHASE FREEDOM | AMEX BCE | | BOFA REWARDS | CITI TYP | Quicksilver | DISCOVER IT | Sallie Mae | CHASE CSP
--------$32,000-------------$30,000-----------$30,000-----------$30,000-----$13,000---------$18,200----------$15,000---------$6,500----

FICO - TU: 780 EX: 784 EQ: 781
Message 4 of 4
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