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!


Posted in Credit Scores
Profile Image

Question By

2 Contributions
0 People Helped
To boost my credit scrore: pay off a student loan over time or right away?
I plan to buy a house next year. I have three student loans. Two have 6.8% APR and one is only 2.875%. One of the 6.8%-ers is only around 10K. In addition to making payments on all of them, I want to pay the 10K @ 6.8% loan completely off before I apply for a mortgage. Which will help my credit score the most? Should I pay off the loan in 2 or 3 payments? Or will it help my score more if I pay it off in 10 payments?

Thanks for your advice.

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

View your scores and reports anytime.

All Responses

Results 1-3 of 3Results per page: 5 | 10 | 25Page 1 of 1   Previous | Next
Top Contributor
101 Contributions
147 People Helped
Most Helpful Response

Helpful to 5 out of 5 people

Paying them off at once will be more beneficial to your credit score than paying them over time, especially if you have other accounts (like a credit card). The effect of reducing your debt is greater than the effect of making on-time payments on an open account.

However, you are wise enough to realize that both affect your score, so ultimately (again, depending on your other credit factors), it might be worthwhile to leave a small amount on the 2.9% interest loan and continue making monthly payments on it.

You shouldn't do that with the other ones - if you have the money to pay them off, pay them off: just think about how much money you're paying in interest each month - that is not worth it!

The interest will be negligible on, say, $500 - $1000 on a 2.9% loan, so that very well might be worth keeping around. The rest - no way - pay them off!

Good luck!

2 Contributions
0 People Helped

Thank you for your advice.

Aise from the extra accured interest which is the better option:

1) Pay 5,250 for 2 months and in 10 months apply for a mortage.

2) Pay 1,100 for 10 months and in 2 months apply for a mortage.

At the time of the mortage application the loan will be paid of in either senario. Is one of them better than the other insofar as trying to maximize the boost to my credit score before the mortage application?


1 Contribution
0 People Helped

student loan payments

About how many weeks or months can I raise my credit score by paying my student loans on time? My payments are 348/ month and the interest rate is 6%. I have made 4 payments so far and my score is still 559. 

Results 1-3 of 3Results 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.


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.