cancel
Showing results for 
Search instead for 
Did you mean: 

PIF or leave small balance

tag
Berkster
Valued Member

PIF or leave small balance

Would it be better to payoff student loan to eliminate the debt or keep a small balance to show different types of credit accounts. Currently I have no installment loans and the only credit I have is revolving credit.

Starting Score: TU 710 EQU 715 EXP 698
Current Score: TU 815 EQU 836 EXP 823


Take the FICO Fitness Challenge

Message 1 of 4
3 REPLIES 3
Guava
Established Contributor

Re: PIF or leave small balance

Pay off you loan Smiley Happy The loan will still be on your report and its presence is enough to show credit mix


Starting Score (08/11/11): TU08: 643
Current Score: TU08: 741
Goal Score: Stay in the 700s; keep reports clean


Take the FICO Fitness Challenge
Message 2 of 4
MarineVietVet
Moderator Emeritus

Re: PIF or leave small balance


@Guava wrote:

Pay off you loan Smiley Happy The loan will still be on your report and its presence is enough to show credit mix


I agree. I always advise paying off any debt as fast as possible as long as you don't use up savings. Being debt free is my #1 priority with consideration of scoring a distant second.

 

As Guava said even after being paid off and closed this will still count in your credit mix although not quite as much as an open, active account.

 

 

 

From a BK years ago to:
EX - 3/11 pulled by lender- 835, EQ - 2/11-816, TU - 2/11-782

"Some people spend an entire lifetime wondering if they've made a difference. The Marines don't have that problem".

Message 3 of 4
Berkster
Valued Member

Re: PIF or leave small balance

Thank you for the replies and advice. I want to be debt free also but I didn't know if not having that credit mix would affect credit scores.

Starting Score: TU 710 EQU 715 EXP 698
Current Score: TU 815 EQU 836 EXP 823


Take the FICO Fitness Challenge

Message 4 of 4
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.