07-29-2006, 06:17 PM
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#1 |
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Greenhorn
Join Date: Jul 2006
Posts: 11
Rep Power: 0  |
Loan Pay Off In Full - Affect on credit score
hey there,
i had a student loan that came due a few months ago. i made a couple payments, but was behind a couple times. nothing major, it was never charged off or considered in default. i came into some money and decided to pay off some debts in full, this one included. how will this affect my credit score (or will it)? it was for $17,000 + some change. i decided to just get rid of it instead of continuing to pay monthly.. |
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07-29-2006, 06:17 PM
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#2 |
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Greenhorn
Join Date: Jul 2006
Posts: 8
Rep Power: 0 |
Obviously, YMMV, but in general, installment loans (like SLs) don't have a huge impact on your scores in comparison to revolving debt (like CCs). So, it usually doesn't make much of a difference if you would have continued to pay vs. paying it off all at once in your scores, but you did save yourself a lot of money in the long run because now you don't have to pay that interest.
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08-15-2006, 11:41 PM
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#3 |
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Super Moderator
Join Date: Aug 2006
Location: West Coast
Posts: 773
Rep Power: 7 |
your options are up to you. if you had a locked in rate of 3.3%, you could have saved that money and invested with a return of 10%. you could have made money on the deal while improving your credit. but it does feel good to have the weight off of your shoulders. it's a personal decision on that one.
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