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Contributor
Posts: 79
Registered: ‎10-03-2012
0

School Loan Balance Higher Than Original Balance - Hurting Score?

Hi all,

 

I've been rebuilding my credit for the past 6 months with much success thanks to these forums.     

 

I have a school loan that was in forbearance, but no longer.

 

Current Balance:   $15k

Original Balance:  $13.5k

 

My reports are showing both numbers.      Are my FICO scores being severely impacted by this?    I was told no, but wanted to be sure by asking the forum.       Is this the same as having the same balances on a Credit Card and having a +100% utilization rate?

 

Thanks in advance?

 

 


Starting Score: Sept. 2012 EX FAKO 601; EQ FICO 603; TU FICO 607
Current Score: Feb 2014 EX FICO 749; EQ FICO 744; TU FICO 763
Goal Score: 760 on all 3


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Moderator
Posts: 13,643
Registered: ‎04-15-2011
0

Re: School Loan Balance Higher Than Original Balance - Hurting Score?

Util does not come into play on this because it is not a revolving account.



Starting Score: 504




July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
Contributor
Posts: 79
Registered: ‎10-03-2012
0

Re: School Loan Balance Higher Than Original Balance - Hurting Score?

Thanks Shogun.    And thanks for your help with my rebuilding effort.   I read all of your responses to other's posts, which I use to educate myself on my situation.    


Starting Score: Sept. 2012 EX FAKO 601; EQ FICO 603; TU FICO 607
Current Score: Feb 2014 EX FICO 749; EQ FICO 744; TU FICO 763
Goal Score: 760 on all 3


Take the FICO Fitness Challenge

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

Re: School Loan Balance Higher Than Original Balance - Hurting Score?

Utilization of installment loans is factored into your score but not near as much as revolving.

 

Amount of debts owed is 30% of your score and installment loans are included in that.  If you owe more than the original balance it may indicate you are unable to manage debt.

Contributor
Posts: 79
Registered: ‎10-03-2012
0

Re: School Loan Balance Higher Than Original Balance - Hurting Score?

thanks for the response.

 

my next question would be.   

 

If this is my only debt and have no other baddies on my credit report.    If I were to pay $10k of the $15 loan tomorrow, I should see a score increase of some sort they next time my loan reports.....correct?  


Starting Score: Sept. 2012 EX FAKO 601; EQ FICO 603; TU FICO 607
Current Score: Feb 2014 EX FICO 749; EQ FICO 744; TU FICO 763
Goal Score: 760 on all 3


Take the FICO Fitness Challenge

Epic Contributor
Posts: 22,406
Registered: ‎01-17-2008
0

Re: School Loan Balance Higher Than Original Balance - Hurting Score?

Moderator
Posts: 13,643
Registered: ‎04-15-2011
0

Re: School Loan Balance Higher Than Original Balance - Hurting Score?

If you could pay that, and not pay interest.  It's a win/win!



Starting Score: 504




July 2013 score:
EQ FICO 819, TU08 778, EX "806 lender pull 07/26/2013
Goal Score: All Scores 760+, Newest goal 800+
Take the myFICO Fitness Challenge

Current scores after adding $81K in CLs and 2 new cars since July 2013
EQ:809 TU 777 EX 790 Now it's just garden time!
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