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Ronman0690

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will paying off loans fast hurt my credit or help
my credit history shows an average of 1.9 years and if i get to 2 it helps my score. i have 2 personal loans that i have been paying on for only 3 and 5 months each. i want to pay them off to have more money in my pocket each month but will this hurt my score? will it help or hurt the history average? thanks!

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Typically, lenders like to see that you have a habit of using your credit responsibly over time, so sometimes paying off a loan fast can hurt your credit. It could also affect your score from the standpoint of making your number of open accounts go down (the more accounts you have open, the better). As for the strain paying the loans off is putting on your pocket every month, you might be able to look at other areas that can take the strain off of your pocket (I know for me personally, eating out less and fixing my lunch more helped put more money in my pocket every week, so making minor adjustments in where you spend your money might help you, also). One last thing: depending on how long your loans are for, you might be able to look at refinancing options. A word of caution with that, however: just make sure that if refinancing is an option for you, you calculate how much you'd be paying back in interest and decide whether or not refinancing would be worth it in the long run. If your interest rate is high, and you end up refinancing and paying less on the principle but the same amount in interest every month, in the long run you will have paid much more than you originally anticipated because of the interest, and that's almost like wasting money. I hope this helps! :)

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