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Account Payoff - Expected Score Change?

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Anonymous
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Account Payoff - Expected Score Change?

Hey guys,

 

I currently have a balance of roughly $6,500 on my student loans.  Would paying this account off in a lump sum negatively effect my credit score?  If so, for how long would you guess?

 

Thanks! Smiley Happy

Message 1 of 4
3 REPLIES 3
laz98
Senior Contributor

Re: Account Payoff - Expected Score Change?

i can't imagine why it would hurt you...
Message 2 of 4
StarraeAday1
Regular Contributor

Re: Account Payoff - Expected Score Change?

Of course paying off an account like that is always the best thing in the long run. But some people have experienced score drops (usually temporary) after closing accounts. This can be due to several factors, one being that you no longer have that tradeline in your "mix" of credit. I admit to being ignorant about how FICO views student loans, though. Maybe someone else can give you a little better insight.
Foreclosure - June 2017
Ch. 7 BK - Discharged January 2018
6/2020 - EQ 680 | EX 691 | TU 707
Message 3 of 4
MarineVietVet
Moderator Emeritus

Re: Account Payoff - Expected Score Change?


@Anonymous wrote:

Hey guys,

 

I currently have a balance of roughly $6,500 on my student loans.  Would paying this account off in a lump sum negatively effect my credit score?  If so, for how long would you guess?

 

Thanks! Smiley Happy


IMO don't concern yourself with a few FICO points if you have a chance to pay off any amount of debt. Becoming debt free is always my main priority.

 

 

From a BK years ago to:
7/09 TU-742 EQ- 779
8/09 TU-765 EQ- 783
9/09 EX pulled by lender 802

You can do the same thing with hard work


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Message 4 of 4
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