Will Paying off Student Loans Hurt my Credit Score?

Paying off a student loan, or any other loan for that matter, will not hurt your credit scores in the long-term. You may see a dip in your scores immediately after paying off the loan. However, assuming you paid your student loan on time, every time, it will almost certainly reflect positively on your credit report after a few months have passed.

Once the loan is paid in full, the account status on your credit report will be updated to show "Paid." That is a positive but very significant change.

Often, when you make a significant change to your credit history, such as paying off a student loan, you'll see your credit scores initially dip slightly. However, the drop is usually small and temporary. Assuming there are no other negative issues in your credit history and everything else in your credit report has been paid on time, your scores will likely come back up in a few months.

For that reason, it's best not to check your scores immediately. Instead, allow a few billing cycles to pass. That will allow time for your credit history to stabilize and scores to bounce back up.

Once your student loan is paid off, that positive account will remain on your credit history for up to 10 years from the date it was paid, giving you credit for your good payment history.

More information on how student loans affect credit can be found on the Ask Experian blog.

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Scoped on: 12/06/2018