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Posted in Student Loans
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Corington

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Will my credit scores change much, if i pay all debts off at the same time? or wilk it go down?
Alright so I have just been informed of an inheritence that I was unaware of that I will be receiving in Oct. My question is, when I use this to pay off anything that might be in collections, my credit cards, and my student loans, will my score go up or down? I would love to assume that paying off all debt at once would have. Huge positive impact on my credit score. Though i remember when I paid off my car my credit score dropped something like 100points. So if my student loans are technically now my longest running line of credit, if I pay them off, the accounts close, that makes my length of credit history go to which ever account was opened After that. If I pay the rest of debts, I see them helping my score. I want to pay off my student loans while I have the chance, but I don't want my credit history length to dramatically drop.

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All debts are not the same.  Lowering revolving debts (i.e. credit cards) helps.  Paying off installments will incur a small hit.  Paying off collections will not help.  You want collections removed.  Do your own research using other resources.  Look into negotating PFD's for your collections.

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