+15 votes
by (2.1k points)
So I was just looking at my credit report, and realized that my oldest line of credit is my student loan. I opened it in August 2010, and I only have $2, 000 left to pay on it. I’ve been throwing extra money at it because after 10 years, I just want it gone! But my question is about my credit score - is paying this loan off early going to tank my credit? My next oldest is a credit card I opened August 2014, right before my wedding, so only 5. 5 years ago. It’s been paid off for years and I hardly use it. I really want to pay the student loan off and not really care about my credit score if it means we’re closer to being debt free, but we’re looking to buy another house in the next 1-2 years, so unfortunately it does matter. Has anyone had experience with this? What has a bigger effect - closing your oldest account, or paying off a debt in full?  
So I was just looking at my credit report, and realized that my oldest line of credit is my student

15 Answers

+2 votes
by (1.3k points)
 
Best answer
I’m looking forward to the feeling of being debt free vs credit score.  
+4 votes
by (6.8k points)
It will go back up
+10 votes
by (1.6k points)
I had a mortgage 20 years ago that I refinanced last year to get a much better interest rate & they removed it from my credit report. Instead of showing it paid/closed/current! When they did my oldest credit went to about 5 years for a credit card I opened. Totally tanked my credit score. I don’t understand why they don’t still consider it as “credit history” once it is paid off. Makes no sense.  
+12 votes
by (6.5k points)
Yep. Regardless of the debt free feeling credit scores are necessary
0 votes
by (940 points)
In 2 years I think it would bounce back.  
+11 votes
by (2.6k points)
It will be ok just work on paying that off. I just sold 2 houses over the past 3 months and I was actually surprised to see my score increase by about 20 points both times. ‍♀️
+12 votes
by (430 points)
Pay it off! It will bounce back. No debt is better then a credit score
+11 votes
by (4.8k points)
Pay off. Score will rise! A different ‘category’ of debt. Put water bill on credit card d pay off monthly carrying no balance. Watch score fly!  
+2 votes
by (300 points)
I've paid off 2 of min. The most recent dropped my score like 2pts. A credit pull to get my husband's car dropped it 5pts.  
+7 votes
by (14.4k points)
Use the oldest card once or twice a year, pay off the balance when the bill comes and that account will stay open and active.  
+13 votes
by (9.1k points)
I am getting ready to pay mine off too and I have had my student loans since 1995. Let that one sink in. I am still going to do it. Kill. The. Debt.  
+3 votes
by (6.2k points)
I paid off my car in April and my student loans were all paid off between May and September which put me at 100% debt free. I took a small hit to my score but it was back up by December and was even higher than before.  
+12 votes
by (5.7k points)
We paid off all our debt the year before last including student loans-our scores dropped and then climbed right back up. We have zero debt-and my score is 831 and my husbands is 821.  
+4 votes
by (8.4k points)
Just dont pay it off right before closing on a house. A year-2 before is ok though. But in the year of buying be very careful about what you are doing credit wise.  
+10 votes
by (2.1k points)
Thank you everyone! This is all great advice. I think I’m going to try to pay it off as quickly as possible, since due to covid, our new house will probably have to wait till 2022. Hopefully my score will bounce back by then  
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