Hello, I had two defaulted student loans and entered the rehabilitation program and are now consolidated through Direct Loans. I now have the option of paying off my student loans as I am planning to purchase a home in the spring of 2014. If I pay the loans off before the 1st due date, my interest will be obsolete. My question is... Will my score go up?? This is the only debt I have on my credit report, as I have paid the others in full and have noticed a score increase. All input is appreciated!!!!
Typically paid installment accounts score the same (or just a bit better) than open. If the new loan accounts do not report yet, I would let them report and pay for a few months to gain positive accounts on your credit report.
What happened to the defaulted loan account tradelines? Any late payments reporting on that account would be worth trying to have removed through GW requests.