paying loan and credit score

Paying for College
1

<p>Hi everyone!</p>

<p>I just want to ask: Does paying off my subsidized loan last semester, affect my credit score? I don't know if this is the place to ask, so I am sorry. I'm asking this question because I am planning to buy a car maybe this summer. Hope someone will clarify me on this one. Thanks!</p>

2

<p>making regular payments on time is the best way to improve your CREDIT SCORE. However, the loan will be taken into account on the lender's determination of whether you can repay the loan or not (debt to income ratio). So, by paying off the loan, you have improved your ratio, not your credit score.</p>