I currently have four open credit lines composed of a mortgage 147k, two student loans for 13k and 5k respectively, and one major credit card with a balance of approximately $300 The student loans which i cosigned with my son, were taken over by me one year ago due to non payment for 90 days last summer. accordingly these student loans will show on my credit report till 2016.
The question i have is in regards to paying down the balance, though the interest rate is fixed at 3.6%. The loan hurts my payment history, but also is my oldest credit line of over 10 years each.
I am considering paying off the smaller student loan, reducing my credit lines with balances from 4 accounts to 3 accounts. The issue of course seems to be whether its advisable to pay off this low 3.6 percent loan, or should i invest the money to earn more than the loan rate.
My current fico is 650 and my total credit untilization is under 5%, with 4 additional revolving accounts. I am of course working to improve my fico as much as i can. thanks for any assistance you may give me.
Starting Score: 734