Paying down student loan question

[Anonymous]

Current credit scores in the 690-705 range.  Goal is 720.  I currently have $87k in student loan debt.  The fico simulator says if I pay $14k, two of my scores would be above 720.  How realistic a jump is this?  Will it work?  Thanks

[SCF]

Utilization on installment loans has a very minimal impact on your scores.  Just making a $14k payment tomorrow probably would not cause your score to go up 15 points, but it might earn you a few points.  What will certainly give you a 15+ point boost is a solid history of on-time payments on those accounts, so if you pay that $14k over 1-2 years, you might even see a larger increase.

[FocusedAndDetermined]

---

@SCF wrote:

Utilization on installment loans has a very minimal impact on your scores.  Just making a $14k payment tomorrow probably would not cause your score to go up 15 points, but it might earn you a few points.  What will certainly give you a 15+ point boost is a solid history of on-time payments on those accounts, so if you pay that $14k over 1-2 years, you might even see a larger increase.

---

Agree with this post.

Paying down the SLs will not only boost your scores over time, but save a tidy sum in interest payments, which is a big bonus. Make your regular payments and then make an additional payment in whatever amount you can afford to the principal.