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Posted in Student Loans
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anonniee

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Paying off student loan...will it hurt my credit score?
My reported credit scores are 726/730, my credit cards have a short account history (some 2 years, some 5 months), and I have two sets of student loans: private and federal. I'm trying to pay off my private loan (started off at 28,000 now only at 10,000!) by the end of the year but will it bring down my score since it's my oldest account? The interest is just crazy, though so I'm not sure if the interest is worth the credit score. I'm also hoping to get a mortgage; so I don't want student loan debt in addition but I also don't want to hurt my score and increase my mortgage interest. Advice? My federal loans are just as old as my private one so I would have at least one older account.

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Even if your score were to take a slight dip once the student loans are paid off, it will be short term and far better than continuing to carry that debt, which only falls off after it is paid.  Student loans are the only debt that has no statute of limitations and cannot be discharged in bankruptcy, so they're just a debt that is best taken care of asap.

Reply by
anonniee

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thank you :)

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