Regular Contributor
K_J
Posts: 209
Registered: ‎01-31-2012
Pay off part of student loan

I have all my Student loans consolidated with one servicer (Fedloans) and my loans have different account numbers. The loan amounts are $10,009, $10,009 $10,009 and $2,509.  My question is if pay off the $2509 would this help with my fico scores? And is it possible to pay off one and not the other since they all have different account numbers? The monthly payment is only $10.00 for the $2509. Thank you.


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Current Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
Goal Score: 700


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Regular Contributor
InvincibleSummer2
Posts: 171
Registered: ‎06-15-2012
Re: Pay off part of student loan

It's possible, but since installment accounts are a relatively small part of your FICO score, it might not do much to your scores.

A lot depends on what the rest of your credit looks like. That money might better be used to pay down revolving debt, or to get a secured card. It all depends on what the bigger picture is in terms of your credit.



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Valued Contributor
SCF
Posts: 1,104
Registered: ‎06-09-2008
Re: Pay off part of student loan

It is possible to pay off that part of the loan, since its a seperate account, and your payment will go down by the amount that was being allocated to that loan.

 

As far as your FICO score, it won't really have an impact.  The loan will continue to report for 10 years with its current payment history (thought any negatives, like late payments, fall off after 7 years).  It might move your score a few points due to changing the number of open accounts, but as the fellow above me said, you'll need to look at the bigger picture if your goal with that money is to improve your credit score.  On the up-side, paying off the loan will save you a good chunk on interest, and get you that much closer to being debt-free!

Regular Contributor
K_J
Posts: 209
Registered: ‎01-31-2012
Re: Pay off part of student loan

SCF,

My goal is to increase my score, however, I'm in the process of applying for a mortgage loan in november. If I get a secured cedit card does this count as an inquiry? thank you for the reply.


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Current Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
Goal Score: 700


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Senior Contributor
laz98
Posts: 4,336
Registered: ‎09-06-2008
Re: Pay off part of student loan

K_J wrote:

SCF,

My goal is to increase my score, however, I'm in the process of applying for a mortgage loan in november. If I get a secured cedit card does this count as an inquiry? thank you for the reply.


 

I'm not SCF, but yes.

Latest scores: Walmart TU: 769. MyFICO TU: 769. DCU EQ: 755. MyFICO EQ: 780. PSECU EX: 756. MyFICO EX: 780.
Regular Contributor
K_J
Posts: 209
Registered: ‎01-31-2012
Re: Pay off part of student loan

Thanks, I would resist the urge for a secured card till I close for now


Starting Score: EQ: 532, EX: 569, TU: 621 (All lender pull 10/15/11)
Current Score: EQ: 660,lender pull 4/13, EX: 671 lender pull 4/13, TU: 691 lender pull (4/13)
Goal Score: 700


Take the FICO Fitness Challenge