If you have student loans, you’ll see them listed on your credit report. Don’t worry if you see more student loan accounts than you think you have.
Credit reports update when lenders provide new information to the credit reporting agencies. You may not see changes reflected immediately in your report. Some lenders send updates more frequently than others, but it usually happens once a month. Learn more about how to read your credit report.
It can feel counterintuitive to see your score drop after paying off a student loan.
This can happen because paying off a loan reduces the amount of active credit you have on file. Typically, a mix of active credit accounts is seen favorably. When a student loan falls off your credit report, you lose that information which can temporarily lower your score.
Paying your student loan in a timely fashion helps you build good credit, and paying it off entirely is an achievement that should be celebrated. Your credit score is only one measure of your financial health, and you can usually overcome these small dips quickly.