topic Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS in Student Loans

I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

bsal — Mon, 27 Jul 2009 20:30:29 GMT

Hey guys I have a serious question at hand, i'm new in trying to rebuild my credit, i'm in the market for a new house and i'm trying to save as much money as posable. I know when they say in having good credit you have to have as many trade-lines open and in good standings as much as posable , i wanted to know would it wise for me to keep my student loan open and continue paying it monthly witch its only a 900 dollar balance left to show open trade-ins, or can i pay it off in full without having a drop in my credit score, since i only have my car loan on my creidt report showing as paying on time, i also have a 200 dollar maycs credit card but it has a zero balance cause i dont use it, and i also have a credit overdraft protection from my credit union navy fed. should i keep payin my monthly school loan and keeping that trade line open , or can i pay it off in full and have it not affect my credit score, witch is 698 transunion and 714 equfax . another thing i just got this car loan and i been paying on time since june 09

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

BungalowMo — Wed, 29 Jul 2009 22:13:00 GMT

@bsal wrote:
Hey guys I have a serious question at hand, i'm new in trying to rebuild my credit, i'm in the market for a new house and i'm trying to save as much money as posable. I know when they say in having good credit you have to have as many trade-lines open and in good standings as much as posable , i wanted to know would it wise for me to keep my student loan open and continue paying it monthly witch its only a 900 dollar balance left to show open trade-ins, or can i pay it off in full without having a drop in my credit score, since i only have my car loan on my creidt report showing as paying on time, i also have a 200 dollar maycs credit card but it has a zero balance cause i dont use it, and i also have a credit overdraft protection from my credit union navy fed. should i keep payin my monthly school loan and keeping that trade line open , or can i pay it off in full and have it not affect my credit score, witch is 698 transunion and 714 equfax . another thing i just got this car loan and i been paying on time since june 09

If you pay it off, your score will get a bump for having it paid off. This will remain on your reports for another7 years at minimum, but likely...more like 10+.

Paying it off now won't hurt you in the least. Did you ever have lates??

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

bsal — Wed, 29 Jul 2009 22:30:34 GMT

no i never had any lates, but i was thinking if i pay it off in full that would be one less trade line open and isnt that what u need to have great creidt score i'm so confused, i dont have that many trade lines, if i pay it off in full the only trade line that i would have open is my car loan

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

Anonymous — Thu, 30 Jul 2009 01:08:31 GMT

Frankly, my impression's always been that a paid installment account, closed in good standing is just as good as an open one. For one thing, that baby'll stay on your CRs for another 10 years, looking beautiful to potential creditors. For another thing (and don't be offended ~ crap happens, yannow?) paying it off NOW means that it's no longer a potential for trouble once you have your home.

Trust me, the last, last, last thing you want is to have to make that measly payment when you have a mortgage and the car needs a new computer chip, or the water heater breaks, etc.

Trust me on this.

Plus, it'll make your DtI (assuming that you still have 10+ months on that loan) prettier. Surely, if you have to deal with a cranky underwriter for your mortgage, being able to say "I paid this off in FULL, EARLY" has to mean SUMPIN. Yannow?

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

BungalowMo — Thu, 30 Jul 2009 14:16:34 GMT

Well, I would think that an open CC or "4", in good standing is definitely a positive for your score. A PIF loan, in good standing is also a good thing.

An open loan is not considered the same as an open CC in FICO terms. In fact, it may even look better if posted as paid early. For instance, you have a 10k car loan. Open in June 06 for a term of 4 years. If you paid that off now, that just shows that you are very responsible and paid this loan 1 year early. Nothing wrong with paying in the alloted 4, but paid in 3 is better.

A cc is an open line....no real "end" to payments. See what I mean? But even with a cc, a $0 or <5% balance always looks better than a 75% balance. Means you use it responsibly, and pay it off in full (or close to it) as you should. It's never beneficial to your FICO to carry a large balance % on a revolving debt.

This obviously does not involve or include any mortgage balances in my loan scenerio....

*Wonderin beat me to it!!!

Message Edited by BungalowMo on 07-30-2009 10:16 AM

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

BungalowMo — Thu, 30 Jul 2009 14:20:58 GMT

Just another quick addition. If your school loan is with Sallie Mae or the US Dep of ED....Pay it off! If anything should happen & you miss a payment, they are 99.999999% cold & unforgiving. Don't invite trouble.

Also....what kind of FICO's do you have? We might be able to make suggestions on a cc that might help your file look a little more diversified.

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

bsal — Thu, 30 Jul 2009 18:57:54 GMT

THANKS. GUYS, to bungalomoe and wonderin i really need your advise. but bungalow you asked what my fico looks like? well as of today my transunion score is 698 and my equifax is 718, i dont know what my expriean is myfico no longer has it, i have a 939.00 school loan balance left, i have a 20k car loan from my navy credit union at 476 a month, and i have a 500.00 line of credit with navy fed, overdraft protection, oh yea and i have a 200 limt on my maycs card with a 0 balance and thats it. so if u have any other tips please feel free to fill me in

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

BungalowMo — Fri, 31 Jul 2009 00:53:51 GMT

If you're with Navy Fed & have scores like that...get a CC with them! I've heard lots of good things about them! And the big plus for you is that you're already established with them & they know your history!

You're as good as IN!

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

bsal — Fri, 31 Jul 2009 01:18:38 GMT

lol my thing is i'm not sure if i really want a creidt card tho, i hear so many stories about people being in cc debt, i dont ever want to be in debt

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

BungalowMo — Fri, 31 Jul 2009 12:17:48 GMT

@bsal wrote:
lol my thing is i'm not sure if i really want a creidt card tho, i hear so many stories about people being in cc debt, i dont ever want to be in debt

Just because you have a cc, that doesn't mean you're going to be "in debt". Use it now & then for a tank of gas, then PIF. Let it post a $40 balance on the fill up now & then...and then pay it off.

It's not the card that gets anyone in debt. It's how it's utilized.

I use a couple of mine for $$ or points. I get Staples gift cards w/the points & that pays for my printer ink!!! The other gives me $$ back toward my gas.

Make those cards be the slave to YOU! Not the other way around.

Re: I NEED EXPERT HELP FROM ANYBODY WITH EXPERIENCE IN THIS

bsal — Fri, 31 Jul 2009 20:01:35 GMT

you know u got a point, i think i will take your advise thanks