Should paying off my 10-year-old student loan improve my credit?

R

RadiantKirk42

New Member
Hey there! So I’ve got this student loan that’s been hanging around on my credit for over 10 years now. Do you think I should go ahead and pay it off, and will that give my credit a little boost if I do?
 
So, I just paid off this old student loan like, $500 and honestly, it did absolutely nothing to my FICO scores. The only thing that changed on all three reports is they now show it as closed paid. So if you're trying to boost your scores and you've got credit card debt, pay that off first. Try to get below 30% utilization on each card under 9% is even better! And, obviously, no missed or late payments on anything. Hope this helps.
 
Hey, so you know, it would actually help your credit. The thing is, they never fall off, and you can't completely discharge them in bankruptcy either. I think they're kind of the cross we bear forever.
 
Installment loans don't affect your utilization.
They're more of a DTI concern.
Paying an old student loan doesn't automatically help your credit.
If it's been on your report for over 10 years, it may be obsolete or inaccurately reporting under the FCRA.
Paying or settling usually just updates status to paid or settled.
Negative history often remains, with little to no FICO score increase.
Paying makes sense mainly to exti default or meet lender requirements not as a credit repair strategy.
Always verify the date of first delinquency and accuracy before sending money.
 
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