Pay off full student loan balance ($4.2k), or continue to make $480 payment per month?
11-26-2012 06:39 PM
The answer to this question almost seems like a no-brainer, but I figure I'll ask you guys anyway.
I'm currently paying back at $480/month ($400 over minimum) a small student loan balance of $4.2k from when I graduated in 2011. I'm an engineer and currently make $50k/year, and have $12k sitting in a checking account making 1% interest. I was originally not paying off the loan to boost up my credit portfolio, but I now have a pretty good score + cards, and can garden if my score takes a hit.
Should I pay it off in full? I'm thinking I should.
Any other investment options? I was leaving the money in the checking account because I was lazy and didn't want to make any bad decisions with my money.
Starting Score: 699 EQ (4/11/12)
Current Score: 761 EQ (8/15/12)
Goal Score: 800+ EQ