Early Payoff for Consolidation Loans?

[ecrcg]

I recently consolidated my Stafford loans, but now I have extra money. I believe that I pay them off early without being charged. However, I've been told this could affect my credit score. What should I do?

[zetta]

What's your current score? Is it already good, or was it bad and you are trying to rebuild it? I would pay them off early unless you need the stream of on-time payments to help rebuild your score. What's the rate on your consolidated loan, and how much do you owe? If it's really low, like 3%, it sometimes makes sense to put your money in a CD instead -- but usually for a higher rate it makes sense to pay it off.

[Aleta]

Do you see any reason in the future that you would need a good credit score? Maybe just paying it down to a low amount without totally paying it off yet might be an option.

[anonymous_saver]

Originally Posted by ecrcg

I recently consolidated my Stafford loans, but now I have extra money. I believe that I pay them off early without being charged. However, I've been told this could affect my credit score. What should I do?

What is your interest rate on the student loan? Do you have any other debt? Do you save towards retirement, emergency fund, down payment? Plus, paying a few extra dollars each month isn't going to really affect your credit score. Why do you ask? Are you planning on taking out another loan anytime soon?

My point is we need more information to answer your question.

[PharmacistRealtor]

Extra money from your student loans should go 1/2 to savings and investment and 1/2 to paying off your revolving debt in this order...credit cards highest interest rate to lowest, car payment, student loans, mortgage...