Paying on student loans

[MZQIANA78]

I have a low FICO score, the mid being 550 and one of the main issues with my report is I have no accounts to pay on. I thought that if I refrained from getting new credit that more scores would go up..Wrong! So I have student loans with Sallie Mae that are still deferred since I am not done with Nursing school. Should I start paying a little something on it to demostrate a new and timely payment history? Want to buy a home in the very near future but with scores like these...lol. Please give me your opinions on this?

[Anonymous]

I would not start paying on your deffered student loans.  Instead get a secured visa or mastercard and make sure they report to the cb's.  Your gonna have to pay the price of credit at first.  High apr's and annual fees but eventually you'll get better cards and a higher score.  When you graduate, then pay the student loans back.

[Anonymous]

You don't have to go into debt to get a mortgage.  Go to daveramsey.com and click on their link for endorsed local providers.. you'll find a local mortage broker who will not squeeze every penny out of you and give you real advice. You don't need a credit score to get a mortgage with normal interest rates.. just a record of on-time payments for rent (I think about 2 years is the norm) and with no debt your DTI (debt to Income) ratio will be excellent.

Please don't go into debt.  I have been there and despite a 6 figure income still couldn't keep up.  After some hard work I paid it all off and now don't owe anyone a thing except the mortagage (which I'm working on).  Everything I earn remains mine and does not go to pay for another banks skyscraper.  Who do you think pays for the marble in those places. 

Sorry to be so resolute but if someone had told me this when I was in your postion I would have saved myself many sleepless nights and untold $1000's

There is no such thing as credit... .it's all just debt and you're lining someone elses pockets with money that could go to pay for your kids education, healthcare even the food in their mouths.

Good luck.

[Anonymous]

The secured loan works great. I had horrible credit. To help raise my score, I got a $500 secured loan (not a secured credit card loan because that was too tempting), and a savings account at the same credit union. I put $600 in the savings account and had the loan automatically pull from my savings account on the due date. I never had to worry about making a payment because they just moved my money for me. I left it alone for a year and my credit went up about 100 points! Eric