Credit Advice

Have a question? Have advice to share? The combined knowledge and experience of everyone in the Credit Karma community can help you. Enter your question or help others below to get started!


Posted in Student Loans
Profile Image

Question By

0 Contributions
0 People Helped
Better to prepay student loan balance and keep account open or pay off early?
My student loan term is set to end in 2020 and as of now I am down to about $3,500 remaining balance and am prepaid until 12/2017. I currently have 2 lines of revolving credit & would like to apply for another in the near future, my student loans show up as 4 separate accounts, I have no other loans, and I am anticipating purchasing a car and house in the next couple years (with the help of loans). My credit score is in the low end of the 'Excellent' range but account # & age of accounts is still fairly low compared to others on here.

I am trying to determine whether it would be best for my credit score/minimizing interest if I…

1) Pay the loan down very low, maybe to ~$100 or so and then let it stay open until 2020 (or as long as I can stand it) and pay it off at the last minute to maximize the account length & maintain credit type diversity
2) If I should just pay off the loan completely right now and be done with it.

Your Credit Scores Should Be Free. And Now They Are.

View your scores and reports anytime.


Reply to this Question

Write your response:
Enter Your Comments

The Credit Advice pages of the Site may contain messages submitted by users over whom Credit Karma has no control. Credit Karma cannot guarantee the accuracy, integrity or quality of any such messages. Some users may post messages that are misleading, untrue or offensive. You must bear all risk associated with your use of the Credit Advice pages and should not rely on messages in making (or refraining from making) any specific financial or other decisions.