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forcreditsake

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Should i pay and close student loans or pay off over time?
I have a total of 10 open accounts, 5 student loans, and 5 Credit cards. The student loans are all roughly 9.5 years old, and each have 6 late payments making a total of 30 bad marks. My CC's history is one for 2 years, and 4 others at 6 months or less.

My question also relates to how late payments effect your score on closed paid in full accounts. If they are no longer a factor when closed, than i can see how closing them will help.

But My other concern is credit history. My average length works out to 5.5 years, with the delinquent accounts making up the largest part of the history. If i were to close and pay them my avg. length would go to something like 6 months or less.

Please shed some light, im trying to figure out this rubric, as i have just recently closed a clean 7 year old CC, because i didnt feel the $300 limit was worth the $69.99/yr fee. Whoops. dropped my length down a bracket, and about 20 points off my score.

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If you can afford to pay

Pay off the student loans ASAP. derogitory remarks on closed accounts will have less negative effect on your overall score.  Worry less about the average age of accounts in order to clean up the report. A short history with open credit cards will do better in the long run than keeping older accounts with derogitory remarks. They will still show up but paying them off will be to your advantage. Not to mention the savings on the interest. 

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