Building credit. Should I pay off my student loans all at once, or leave a chunk? What's the best?
If I want to build up my credit using my student loans, what's the best way?
I have about 7k in student loans at a really low interest rate, but have enough money to pay it all off. What's the best way to build up my credit history?
I don't have the greatest credit, as I have very little credit and was late a couple of times with small credit card payments (disorganization) and once I refused to pay a $25 phone charge I didn't agree with. I am worried about my credit history now though, as I can't even get a credit card now.
What would be the best way to build my credit up with this student loan? It costs me about $180 a year to keep the $7,000 debt, which isn't so bad.
Can I pay 6k of it and just leave the remaining 1,000 of the loan open to make it continue to count positively, or should I go about it differently?
Update: December 02, 2009.
I need to build my credit. I can fix the interest rate at about 2%, and we have no other debt. In the end, it only really costs me about 1% considering interest on our savings. The problem is that I really need to build my credit, because at this point I can't even get a store credit card.
- Asked by milla
, A Thinker, Female, 36-45