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chpaul21

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Building Credit
I have money to pay off a student loan in full. Would it be best to pay in full or to pay a lump sum each month to build my credit?

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Unless you have other installment loans in good standing with a good ratio of what you've paid back on the loan or unless you will save a bunch of money for an early pay off, you may want to pay 90% of what is owed on the principal and let the loan ride, it would look good because the loan would be practically paid off and should help improve your FICO scores. Paying loans completely off causes a score to go down, because the loan closes. Paying in advance will still have the loan update as paid as agreed every month come reporting time.

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