Credit Cards Center Credit cards from our partners
Reply
New Visitor
Posts: 1
Registered: ‎10-15-2012
0

Student Loan Payment Question

I have a student loan that I just got paid down to below 4000 dollars. This is pretty much the only "good standing" consistently being paid as agreed and being reported as in good standing.

 

I was wondering if I should pay all of the bill except a dollar or a couple dollars so they will still report this as in good standing and open account. My next payment is not due till 2016 but I want to get as much paid off as possible. Would it be beneficial to keep a couple dollars not paid for this loan since this is my only good account?

I have a secured credit card that was just opened a couple months ago (need to stop having balance on it). Since this credit card is new and the student loan has been there since 2006 or 2007 should I try to leave this loan open?

 

P.S.. I had a co-signer and they only reported to the co-signers credit report once when it was past due. Is there anyway that we can remove this as it only shows up as a negative in their credit report?

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
0

Re: Student Loan Payment Question

IMO, you are better off paying it in full. Per FICO scoring, it doesn't matter if you pay it off now or 5 years from now. The history will still continue to reflect as a positive even after it's closed. The only difference would be that it'll delete roughly 10 yrs from the date you pay it off. In fact, there's a slight chance for a score uptick as another account reflects $0.

 

If reporting accurately on the co-signer's CRs, then that alone isn't a basis for automatic deletion. In fact, if reporting negative there it should be negative on yours too, though I wouldn't challenge them on that. Your co-signer can send a goodwill letter asking the lender if they wouldn't mind deleting the lates, but the creditor doesn't have to. There is a slight risk of the lender changing their reporting to reflect accurately on yours too.

 

 

Advertiser Disclosure: The listings that appear on myFICO are from companies from which myFICO receives compensation, which may impact how and where products appear on myFICO (including, for example, the order in which they appear). myFICO does not review or include all companies or all available products.
† Credit cards for FICO Score ranges: The score ranges are guidelines based on actual applicant approvals and having a FICO Score in a particular range does not guarantee you will be approved for credit cards recommended in that range.

Copyright ©2001-2015 Fair Isaac Corporation. All rights reserved.   | Terms of Use | Privacy Policy | Sitemap

IMPORTANT INFORMATION: All FICO® Score products made available on myFICO.com include a FICO® Score 8, along with additional FICO® Score versions. Your lender or insurer may use a different FICO® Score than the versions you receive from myFICO, or another type of credit score altogether. Learn more

FICO, myFICO, Score Watch, The score lenders use, and The Score That Matters are trademarks or registered trademarks of Fair Isaac Corporation. Equifax Credit Report is a trademark of Equifax, Inc. and its affiliated companies. Many factors affect your FICO Score and the interest rates you may receive. Fair Isaac is not a credit repair organization as defined under federal or state law, including the Credit Repair Organizations Act. Fair Isaac does not provide "credit repair" services or advice or assistance regarding "rebuilding" or "improving" your credit record, credit history or credit rating. FTC's website on credit.