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New Member
Posts: 5
Registered: ‎08-10-2012
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Re: Pay on deferred student loan?

I knew I could make payments on it. I was just wondering how it would affect my score. When I do make a payment will the original loan balance stay listed and will it eventually show that I have paid 75% of it after awhile or will it just list a new loan balance? Example. Say I took out a $2500 student loan and it shows on my credit report that I have a $2500 loan. If I make a payment of $500 will it be reported to the 3 CB as $2000 remaining on my $2500 loan or will it list the loan as being $2000 and still show that I owe 100% of the loan?

Senior Contributor
Posts: 4,329
Registered: ‎09-06-2008
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Re: Pay on deferred student loan?


kkingsley930 wrote:

I knew I could make payments on it. I was just wondering how it would affect my score. When I do make a payment will the original loan balance stay listed and will it eventually show that I have paid 75% of it after awhile or will it just list a new loan balance? Example. Say I took out a $2500 student loan and it shows on my credit report that I have a $2500 loan. If I make a payment of $500 will it be reported to the 3 CB as $2000 remaining on my $2500 loan or will it list the loan as being $2000 and still show that I owe 100% of the loan?



Okay, good.  Someone mentioned taking them out of deferment to pay on them, so I thought I would mention it.

 

Yes, the original loan balance will still be listed.  Just like an auto loan.

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
New Member
Posts: 5
Registered: ‎08-10-2012
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Re: Pay on deferred student loan?

Thats exactly what I wanted to know. Thank you.

 

Next question. This may sound stupid but here i go.

 

I currently have a (about) 600 credit score. I have mailed off letters asking collection agencies for debt verification. Hopefully that will raise my overall score a bit (some of the items are false or have been paid) but currently I cannot get a credit card, a auto loan, and definately not a home loan which is what Im working towards. Would it be a bad idea to take another student loans in an effort to raise my credit score? Funds from the loan would be put into a designated bank account for the purpose of making automatic payments towards the student loans.

 

My school has just offered me a crazy student loan of $9,500(I dont need it nor want it but I am exploring my options) & I currently owe $2,500 in student loans. $12,000 total if I accept it.

 

If I took the $9,500 and paid $1,875 towards the $2,500 loan to bring the amount owed below 25% and then took the remaining $7,625 and paid it towards the $9,500 loan to bring it below 25% would this significantly improve my credit score? I would have $12000 in available credit and have $2500 in debt between the 2 loans. Essentially I would still owe the amount of the first student loan but I would have raised my available credit. I hope this makes sense.

 

Will this raise my credit score or lower it in the long term and short term? To increase my score the most should I space out the payments to get it below the 25% or can I do pay 75% of each right away with no ill effect?

 

I know this is kind of weird but it will be interesting to see some responses. The CBs have played with my credit for years so I really dont mind playin them if it gets my family into a home that we can call ours.

Frequent Contributor
Posts: 313
Registered: ‎07-21-2012
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Re: Pay on deferred student loan?

I'm not sure about the scheme you have planned, it sounds OK to me, but I'll leave that up to others to answer. You will probably take a ding for having a new account, but that should not last long. 

 

Before you can buy a house, you will need to at a minimum pay off every collection on your credit report and be able to show the lender proof that it is paid. Better yet, start working on having all the bad things on your credit report removed. There is a lot of information here on get that done.

 

If you have no revolving credit, go to a credit union and open a secured credit card. Use it, but when the statment posts, make sure your bhalance is at 9% of your credit limit every month, then pay it off in full. Shop around, look for a secured card that will graduate into a unsecured card. After you show good history on that for six months, you can apply for another better credit card and treat it the same way.

Senior Contributor
Posts: 4,329
Registered: ‎09-06-2008
0

Re: Pay on deferred student loan?

No, it's not worth it.  Installment loans are only a very small portion of your overall credit score.  It's really not worth the trouble at all.  Also, it would not raise your available credit the way you are thinking it will.  It's not revolving debt, like a credit card with a limit you can charge up to repeatedly.  Installment loans only go one way--down!  Smiley Happy

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
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New Visitor
Posts: 1
Registered: ‎12-05-2012
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Re: Pay on deferred student loan?

This is very good news, I'd like to pay some but will have money some weeks and other weeks I might not. But while it's deferred, I think it is best to be able to start knocking it down. So as long as the deferred status doesn't turn into an active payment scheduled - I'm good for now.

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