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Compared to credit cards, the only reason for paying off your student loans first is to avoid a loan default that can lead to having your tax refunds taken. However, when it comes to the cost of debt, repayment options, and other important factors, paying off your credit cards is more beneficial.Can you build credit by paying off student loans?
Paying off your student loans can free up your extra money and lower your debt-to-income ratio, which also benefits your financial situation. All in all, paying off your student loans is still a good move. “Paying off a student loan, like any other loan, is a positive step in building a strong credit history.