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Posted in Student Loans
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Tincrow

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Should I pay off my Student Loan right away, if I have bad payment history?
So I've got only 4,000 left in student loans. I've been making lump sump payments of about $1500 every month, so that I'm paid ahead by almost four years. I could pay off my student loans entirely in the next three months BUT, my payment history isn't so spectacular with a 76% payment record, with student loans being my only source or credit history.

I just got a secured card, and I am in the process of getting more cards, but for now should I keep my student loans in order to build better payment history? I'm not worried about paying a little extra interest by keeping the loans, but from a purely score oriented mindset, is it better to have the loans completely finished or to keep them on so they can pull up my repayment history?

Thanks in advance,

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For scoring purposes it is best to pay the loans down as you are doing BUT not pay them off. When you close them, you can expect a score ding. For financial purposes and for peace of mind, it may be best to go ahead and knock them out and get a small installment loan to replace them, that would cause a drop too, but then it would recover with some time. It is all in what you want to do though.

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