Paying off your student loans as soon as possible makes a lot of financial sense, but be aware of how it may affect your credit score.
You could potentially see a slight drop in your credit score, but probably not a significant one.
But I was a little worried when my credit score went down slightly after I paid off one of my student loans.
After I did some research, I found out that paying off your student loans could actually hurt your credit score. Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life.
Please do your homework and let us know if you have any questions or concerns. Shouldn’t this wonderful occasion be celebrated with a bump in your credit score, and not a hit to it?
“This category of your credit score shows how good you are at managing multiple accounts of varying structure at the same time, and without different active accounts, there’s no recent information supporting your ability to do so,” affirms Our team at Student Loan Hero works hard to find and recommend products and services that we believe are of high quality and will make a positive impact in your life.We sometimes earn a sales commission or advertising fee when recommending various products and services to you.The best thing you can do to maintain a positive credit score is to pay your student loans on time.Paying off your student loans will result in some closed credit accounts, but that positive payment history will still be there and show others that you are a responsible borrower.