Can you help me??? Student loan issue

[ScottyFixCredit]

Hey guys,

This may be in the wrong forum so I will probably post it in both. I recently did a rehabilitation program for a student loan which is now back in good standing on my credit report and shot my score way up from where it was. From the looks up of it they put me in good standing since I took out the loan like 8 years ago. Now here is where it gets tricky....

They are offering me a set interest rate in which my report would show the loans from 8 years to be paid off and a new one opened up with the new interest rate... My question is.....

Will my score be better off with....

A. Leaving it the way it is with the loans from 8 years ago still open in good standing. ( interest rate could change )

or

B. The loan from 8 years ago paid off ( in good standing ) and a new loan opened up ( set interest rate ).


My concern really isnt with the interest rate because there is only like 5k in total on the loans. It is with which option will keep my credit score higher.



Any help would be great and thanks!!!

[chane]

Good question. It's hard to say. The scoring system is very complex. It depends on a few other factors and even if I knew how your whole credit report looked, it would be very hard for me or anyone else to say exactly how it would effect your scores.

Honestly, I think either/or will be fine. Neither will really have a negative effect.

[stone4779]

I would say keep the ones you have and pay those off...adding new account will lower your Average Age of Accounts. I wish I would have had that option, but had to consolidate to prevent garnishment, so I really had no choice.