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!

Question

Posted in Student Loans
Profile Image

Question By
StudentDebt2000

0 Contributions
0 People Helped
I've been slowly paying down student debt, should I pay off and close the accounts?
I started with about $12,000 in student loans, It's down to about $2000 because I've been making larger, but steady payments for several years. Paying them down has improves my score slowly. I'm concerned that when I finish paying them, the payments of course will no longer improve my score, and the closed accounts may negatively impact my score. As much as it would be emotionally satisfying to finally put my school debt behind me, would it be wiser to start making smaller payments to prolong the loans to benefit my credit score?

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

View your scores and reports anytime.

SIGN UP NOW
All Responses

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
93 Contributions
65 People Helped

If it were me, I would pay that student loan off as fast as possible. The high balance on the stident loan is keeping your debt to income ratio high and that is never good.

To show a history of good credit, I would open new positive credit lines such as a car loan, credit cards, revolving store charge accounts and build my credit with those. It is never a good idea to keep student loan debt just to show you are making payment on time because the less you pay in monthly payments, the more interest will be accrued and the longer it will take to pay it off. Kepping your debt to income ratio as low as possible is a good thing.

Result 1-1 of 1Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next

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

View your scores and reports anytime.

SIGN UP NOW

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.