Student Loan vs Credit Score
My daughter has a few hundred dollars remaining on her student loan at 2.5%. She has no other debt and only one credit card with zero balance. For her credit score, would it be better to pay off the loan or keep it active by making only the minimal payment?
Terry Says
Definitely, pay off the loan. Get that off the books as paid in full. She should use her credit card regularly, pay in full and on time. That will really create a great credit score.
