08-12-2009 04:11 PM
09-15-2009 10:59 PM
The exact complex mathematical algorithms each of the 3 CRAs (Equifax, Experian, Trans Union) are using are secret, however ...
We know that the credit score may be lowered due to several factor, among other: "defaults" (not paying in time, paying less then agreed / debt settlement), too many (usually credit card) accounts with balances, and large total amount due.
1. "Deferred" DOES NOT mean "default" ! It means that the financial institution agreed and allows you to postpone making payments.
2, Student loan accounts ARE NOT credit (revolving) type accounts.
3. By paying later some interest accumulates and is capitalized (added to the existing balance), thus increasing the total amount due.
Therefore, I have reasons to believe that only "3" may slightly lower your credit score.
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