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rifleman wrote:
With me it's a question of cash flow--I can afford to send most of my income to student loans right now and still live a relatively comfortable life, but I'm not sure I'm doing the right thing. I wonder if it's better for me to save money for a downpayment on a house rather then pay down relatively low-interest student debt faster I am constantly confused by thisIt depends on how much the loan is for. And how long it would take you to pay it off. Have you done the math?
Could be because you're only 3 months into a 5-year loan.
FICO_Focused wrote:The reason I ask is that I was recently turned down for a couple of CCs... One of the common reasons was that the amount owed on Installment account is to high.
I agree. But the OP wanted to know how his FICO scores might change.
masdeocho wrote:Don't get confused -- there is no single "right" answer. Some people are debt-adverse, and want to pay off as much debt as fast as possible. Others believe in having an emergency fund despite having debt. Still others believe in saving for a goal above all else And some like to do a combination of paying down debt/saving. The best approach for you is ... well, the best approach for you.
masdeocho wrote:Could be because you're only 3 months into a 5-year loan.
fused111 wrote:I agree. But the OP wanted to know how his FICO scores might change.
masdeocho wrote:Don't get confused -- there is no single "right" answer. Some people are debt-adverse, and want to pay off as much debt as fast as possible. Others believe in having an emergency fund despite having debt. Still others believe in saving for a goal above all else And some like to do a combination of paying down debt/saving. The best approach for you is ... well, the best approach for you.
FICO_Focused wrote:masdeocho wrote:Could be because you're only 3 months into a 5-year loan.That's what I was thinking, but I wonder why the canned reason is in regard to ballance rather than time?Rob
@fused111 wrote:
@Anonymous wrote:
I completely recommend paying it off early if you can because:
1. Less interest to pay!
2. Looks better to lenders for income reasons.
3. You still get points for the loan being paid.
4. The debt is counting against you on your score.
If you choose to not pay off early.
1. More history.
2. Lenders see you as more profitable.
IMO pay off as fast as you can unless you have 0% int.
There are other ways of making history that will cost you less $$.1. Yes2. probably not3. hardly4. NO!1. Yes, if payment are on time2. Ask Tuscani
@fused111 wrote:4. NO!