Re: Student Loan Payoff? Should I?[ Edited ]
11-16-2012 01:33 PM - edited 11-16-2012 01:37 PM
Hello, My credit score improved when I paid off my private student loan. However, I did not have any student loan missing payments that were recorded on my credit report. In light of that, I am not sure how much the pay off will impact your score with the missing payment issue. What I recommend is to request the lender to delete the "missing payments" tradeline and update your credit report to state "paid in full". This strategy has worked for me when clearing my credit as long as the balance was paid. Some lenders have deleted records all together at my request. It depends on the creditor/lender and if there is a statute of limitations involved on the recorded debt. Since "Paid in full" is a good reflection on your credit report, see if they can update your records and remove the missing payments. If the missing payments are recorded as "lates - 30, 60, 90 days delinquent", then it will probably not get removed. Not sure, but you can ask. The other thing is to try not to let late payments hit your credit report. Always call them and make a promise to pay date to avoid late payments on your credit report. Late payments decreases your score tremendously. I was surprised at how kind creditors can be if you call them and let them know what is happening. I am experiencing job loss and have maintained my credit by calling creditors and staying in touch. I never let anything hit my credit report if I can help it. Also, inquire of insurance (debt cancellation program) with your credit card companies (if this is available) in the event of job loss. I was able to cancel out 2 credit card debts by having this insurance while I am not working. I am so thankful for this type of insurance. Otherwise, my credit would have suffered. Hope this helps and good luck.