paid in full -- effect on credit score?

[mixologist04]

hey there,

 

i had a student loan that came due a few months ago. i made a couple payments, but was behind a couple times. nothing major, it was never charged off or considered in default.

 

i came into some money and decided to pay off some debts in full, this one included.

 

how will this affect my credit score (or will it)? it was for $17,000 + some change.

 

i decided to just get rid of it instead of continuing to pay monthly..

[ziggypop]

hey there,

 

i had a student loan that came due a few months ago. i made a couple payments, but was behind a couple times. nothing major, it was never charged off or considered in default.

 

i came into some money and decided to pay off some debts in full, this one included.

 

how will this affect my credit score (or will it)? it was for $17,000 + some change.

 

i decided to just get rid of it instead of continuing to pay monthly..

 

Obviously, YMMV, but in general, installment loans (like SLs) don't have a huge impact on your scores in comparison to revolving debt (like CCs). So, it usually doesn't make much of a difference if you would have continued to pay vs. paying it off all at once in your scores, but you did save yourself a lot of money in the long run because now you don't have to pay that interest.

 

Hope this helps!

[mixologist04]

thanks! yeah, my main reason for paying it off was saving the money + not having the monthly payment to worry about.