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justanotherusername
Posts: 3
Registered: ‎08-26-2013
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Using student loan to increase score

I just finished submitting my FAFSA online, which I'm sure 99% of you know is for school financial aid. If I chose to accept only the subsidized stafford loan (US Dept. of Ed. pays the interest while I am attending college), how would I go about using this opportunity to increase my credit score? I have enough money saved up so when I receive the loan, it will probably be left untouched. Say I chose to accept $5000, should I pay $500 every month for the next 10 months to increase my credit score? $250 for 20 months? Or will my score decrease? Any help would be appreciated.
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pizzadude
Posts: 9,220
Registered: ‎01-28-2010
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Re: Using student loan to increase score


justanotherusername wrote:
I just finished submitting my FAFSA online, which I'm sure 99% of you know is for school financial aid. If I chose to accept only the subsidized stafford loan (US Dept. of Ed. pays the interest while I am attending college), how would I go about using this opportunity to increase my credit score? I have enough money saved up so when I receive the loan, it will probably be left untouched. Say I chose to accept $5000, should I pay $500 every month for the next 10 months to increase my credit score? $250 for 20 months? Or will my score decrease? Any help would be appreciated.

As an installment loan, the amount how borrow, or how quickly you pay it really won't do anything to affect your FICO score.

March2010 FICO® ~ 695 TU, 653 EQ, 697 EX

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