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janpan

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will paying off a student loan increase my credit score?

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Usually closing account will reduce scores, not increase them. Either or, if you have a chance to pay off your student loan, I would go for it, unless you have some type of important financing needs coming up soon.

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Student loans are often at a lower rate than most other loans.  However, they will never drop off your credit report until paid or released by some other provision such as total disability.  Check the tax laws about the interest that might be deductible.  And, while paying them in full might give your credit a "dip" it is minor compared to continuing to have them on your credit reports.

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My CK score was around 780 when I paid off and closed my student loans account. My score dropped about 20-30 points to the 750-760 range.

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