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Paying off student loans or paying down?

New Contributor

Paying off student loans or paying down?

Hey , My student loans are at about 12k. I have the means to pay them all off right now, I'd like to boost my score. Only thing is, I have some negative on my report from a Nelnet that defaulted. I rehabbed it and it was transfered over, but the lates are still there on the original nelnet.. Should I pay off my non negative loan , leave 20% of it and then leave my nelnet balance large also ?

 

What should I do ! 


Starting Score: 506
Current Score: 720
Goal Score: 800


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Message 1 of 5
4 REPLIES
Epic Contributor

Re: Paying off student loans or paying down?

Paying off installment loans won't help your score very much.  You may or may not see a bump.

 

What do you mean you rehabbed it and it was transferred over?  Was the account picked up by someone else and closed?

Message 2 of 5
New Contributor

Re: Paying off student loans or paying down?

Yeah I messed up big time on 2 loans, defaulted. but now i rehabbed both of them, they were repackaged as new loans but some negatives/lates r on my report. My score went up 100 pts but id like to go from 650 to 680-690.. I feel I need to lower my installment loans from 11k to 2-3k.. 

 

Any ideas?


Starting Score: 506
Current Score: 720
Goal Score: 800


Take the myFICO Fitness Challenge
Message 3 of 5
Epic Contributor

Re: Paying off student loans or paying down?

You may see a small bump for that.  It is hard to say with installment loans.

 

As for the lates, those don't get removed after rehab, just the default status.  Others have had luck getting the lates removed through GWs or contacting the ombudsman.

 

Do you have any CC?

Message 4 of 5
New Contributor

Re: Paying off student loans or paying down?

yes, I have 3 Credit cards. $2,000 BoA, $500, Capital One, and a $5,000 Amex gold delta. All keep $0 or less then 30% balance at all times. I spend baout 5-10k$/month total across all 3 of them and pay them off always.

 

I really don't know what else I can do to get my score up to a high 600s. Im stuck in 645-655 now.. No matter what I do I cant seem to  get it over the hump.

 

I may chip away the installament loan, leave the one with lates on there and pay that off .. but clear the balance of the one with no negatives..


Starting Score: 506
Current Score: 720
Goal Score: 800


Take the myFICO Fitness Challenge
Message 5 of 5