Will changing my monthly student loan payment affect my credit score?

Answers:1   |   LastUpdateAt:2012-09-22 01:43:03  

Question
uma
Asked at 2012-09-02 02:39:03
I've been paying my student loan consolidated for 3 years. I had about 12 years left until I received a points deduction of 1% on my rate ( reward for 2 consecutive years of self - takes ) . Now that my loan rate is 4.75 % . Now will be paid in 10 years 8 months if I keep at the current price of $ 215 per month . I can easily afford to pay more and was looking to drop a rest of seven years for an additional $ 80 a month . This would save me more than $ 2,100 in interest paid over the life of the loan . What I have is curious that this negatively affect my credit score ? I know that the longevity of the accounts is a factor that increases your score . Will reducing the life of my loan for almost 4 years hurt my score in the short term or long term? The loan will change even with my 10 years in total. What I really like to do is reduce the lifetime of the loan to the minimum possible without affecting my credit score . MedlinePlus MedlinePlus Thanks to anyone who can help .
Answer1bailyAnswered at 2012-09-22 01:43:03
In my opinion does not matter . While you are paying the loan on time only positively affect your credit score . MedlinePlus MedlinePlus I would keep your monthly payments , currently $ 215. Instead of changing anything I will just pay additional amounts to . For example , lists the new terms that require an additional $ 80 a month , that would be $ 295 per month. If you can afford that you could pay $ 300 a month , while conditions still have to pay $ 215 a month. This will help you pay off the loan faster, that is your goal, and also allow you to increase your credit slowly . MedlinePlus MedlinePlus Anything involving student loans remain on your credit report for some time . If no payment is made will remain in the country for several years . Continue to pay your loans on time and you'll be fine . MedlinePlus MedlinePlus Essentially credit score improves credit you have. So the loan repayments over time as paying your credit cards on time only help improve your credit score over time. There are three credit scores people look , one focuses more on the amount of " open accounts " that has , so once you pay your loans it may be less than the other two , but it will not be a big problem .
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