Can pre-paying my student loans increase my credit score?
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Like so many student I have two student loans. I still have a few years before graduate, but I want to start building a credit history.
I think I can afford to chip in a hundred bucks or so every month toward my principal. Can pre-paying my student loans raise my credit score by any chance?
Any help will be appreciated.
Save your money
Paying ahead your student loans wouldn’t help a bit for your score.
It’s much better to keep paying your agreed payments. Just make sure you’re NEVER late on any payment.I guess that you probably have a thin credit report, i.e. a new report with only a few items on it.
Even one late payment can do much more damage than 12 on-time payment in a thine file.
If you can spare $300 and want to build credit – your much off putting it in the bank, freezing it and taking a secure loan.
This will help to build your credit a lot.
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