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aliachavez21

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I have 3 loans totalling 10k if I pay them off by MAy will my credit score go up significantly?

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Paid installment loans

I'm assuming you're talking about installment loans (Car, home, etc.) rather than credit cards?  Since installment loans diversify the types of debt you accrue and pay, they can positively impact your credit score if you pay them on time. Types of credit used—what kind of credit accounts you have and how many of each—account for approximately 10 percent of your Credit Score.

So while it may seem like paying off a debt—such as an installment loan—early would reflect positively on your credit score, doing so actually has little impact.

In fact, a record of steady payments throughout the life of the loan may be more beneficial to your score than paying it off early. Approximately 35 percent of your credit score is based on your payment history, and a history of on-time payments can help you raise your score over time. If you’re making your monthly payments on your installment loans on time and in full, then each month you’re fortifying a healthy credit score.

An open account paid regularly is more beneficial to your credit score than a closed account, which is what your installment loan becomes once it’s paid off.

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Pay your balances down and your score will increase, but don't pay them completely off as that would hurt your score.

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