Student loan balance drop, so did credit score. Confused..

[Anonymous]

Hi everyone, I'm hoping someone has some insight for me.

my wife was recently was approved for a discharge of her student loans because of disability (neck and back fusion). Myfico has the following information for her -  account information and Student loan - payment deferred Fixed rate Account transferred or sold Student loan Fixed rate. Pays account as agreed and all the balances all changed to zero. (she has like 12 different loan accounts from Sallie Mae)

Her credit score dropped nearlly 30 points. I just added her as another cardholder on my CC but that only raised her score by 9 points. Im curious as to why her credit score on myfico dropped 30 points. We are trying to get her to a 680 credit score (mortgage stuff) and those 30 points would have made her hit the mark, but now we are 30 points off...anyone have some insight? BTW this is the Equifax score.

[bdhu2001]

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@Anonymous wrote:

Hi everyone, I'm hoping someone has some insight for me.

my wife was recently was approved for a discharge of her student loans because of disability (neck and back fusion). Myfico has the following information for her -  account information and Student loan - payment deferred Fixed rate Account transferred or sold Student loan Fixed rate. Pays account as agreed and all the balances all changed to zero. (she has like 12 different loan accounts from Sallie Mae)

Her credit score dropped nearlly 30 points. I just added her as another cardholder on my CC but that only raised her score by 9 points. Im curious as to why her credit score on myfico dropped 30 points. We are trying to get her to a 680 credit score (mortgage stuff) and those 30 points would have made her hit the mark, but now we are 30 points off...anyone have some insight? BTW this is the Equifax score.

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An educated guess would be that her mix of credit changed.  Does she have any other installment loans?  If not, you may want to try the secured installment loan from a credit union method that is listed in this thread.

[Anonymous]

She listed on the car lease...so that would count. I will have to check out the link you sent. Thanks for the info!!

[travisr0]

credit mix accounts for about 10% so more than likely that what it is

[Anonymous]

So quick question...what would be more beneficial to her score. She has a $555 balance on a $750 CC and is on my account which is $3000 of which $1300 is being used.

Would it be more beneficial for her score to pay off her CC in full (dropping overall from about 50% to 35% or so), or get a new loan of some kind? 

Trying to get her quickly back up to or close to 680 (again before we get our first mortgage) as this sudden drop came as a surprise to us and was not expected in the least. If she doesn't get to 680 I wouldn't be able to add her "income" to our total income when they calculate our first mortgage (affordability, etc.) so even thought its not a whole lot it is important. 

[gdale6]

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@Anonymous wrote:

So quick question...what would be more beneficial to her score. She has a $555 balance on a $750 CC and is on my account which is $3000 of which $1300 is being used.

Would it be more beneficial for her score to pay off her CC in full (dropping overall from about 50% to 35% or so), or get a new loan of some kind? 

Trying to get her quickly back up to or close to 680 (again before we get our first mortgage) as this sudden drop came as a surprise to us and was not expected in the least. If she doesn't get to 680 I wouldn't be able to add her "income" to our total income when they calculate our first mortgage (affordability, etc.) so even thought its not a whole lot it is important. 

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Pay off her card(s), ultimate goal is only 1 reporting no more than 9% of its CL to max the Fico score. This only has to be  done prior to apping for any new credit.