I have a friend who has the money to pay off his student loans but he refuses to because he believes that he needs to be paying back debt every single month in order to have a good credit score. Because he believes that if he paid them off now and then didn't have any additional debts the next few years then he wouldn't have enough credit history for those couple of years to have a good credit score. So instead of paying off his high interest student loans he's been using his extra income to invest in the stock market.
I believe he's pissing away his money by continuing to pay interest on his student loans and that he's wasting a lot of money trying to maintain a great credit score that he already has. I think if he paid them off and then 4 years from now went to apply for a mortgage that him simply using a credit card will be enough to establish a credit history for those 4 years.
Does continually carrying a debt month to month actually help boost/maintain your credit score to the point that it's worth paying a lot of money in interest?
Submitted April 26, 2019 at 09:54AM by CorgiCrossing http://bit.ly/2UYqTtn
