Student loan payment

[sinchoy]

Just had a quick question about my student loan. I have a 26000 dollar student loan. I paid it down to 22000 so far. I'm making 142 dollars a month payment on it. The interest is 3 percent. Its a 30 year loan. I was just wondering if anyone knows if it will increase my credit score if i pay it all off at once or if it is better for me to pay monthly payments to show that i can pay off a bill? Last time i checked my credit score was 740 something. I have the money to pay it all off but i'm making a higher interest off the money buy putting it in a money market. I was just wondering if anyone has any suggestions or comments on what i should do? Thanks in advance.

[MBA_CA_06]

I'm in a similar situation as yourself, except I have about $10k in student loans at 3% for 15 years.

 

You will likely get a boost to your credit score if you pay off the balance. But, you already have a high credit score, so the "bang for your buck" will not be that great.

 

Since you're making more in interest with the savings, I wouldn't pay it off quickly. Pay more than the minimum each month, and you'll save yourself a lot in interest and get it paid off a lot sooner.

 

I guess it comes down to a personal preference...if you want to eliminate the monthly payment, pay it off, then increase your savings...it just depends on your financial goals.

[crimson]

Just had a quick question about my student loan. I have a 26000 dollar student loan. I paid it down to 22000 so far. I'm making 142 dollars a month payment on it. The interest is 3 percent. Its a 30 year loan. I was just wondering if anyone knows if it will increase my credit score if i pay it all off at once or if it is better for me to pay monthly payments to show that i can pay off a bill? Last time i checked my credit score was 740 something. I have the money to pay it all off but i'm making a higher interest off the money buy putting it in a money market. I was just wondering if anyone has any suggestions or comments on what i should do? Thanks in advance.

 

Who is the loan with? 3% is very good!

[LynnInMN]

Just had a quick question about my student loan. I have a 26000 dollar student loan. I paid it down to 22000 so far. I'm making 142 dollars a month payment on it. The interest is 3 percent. Its a 30 year loan. I was just wondering if anyone knows if it will increase my credit score if i pay it all off at once or if it is better for me to pay monthly payments to show that i can pay off a bill? Last time i checked my credit score was 740 something. I have the money to pay it all off but i'm making a higher interest off the money buy putting it in a money market. I was just wondering if anyone has any suggestions or comments on what i should do? Thanks in advance.

 

Who is the loan with? 3% is very good!

 

Doesnt really matter who he got the loan with. He more than likely consolidated when the rates were super low a few years back. You cant get these rates anymore.

[MBA_CA_06]

Yes, I consolidated in 2002 or 2003, I believe.