I have an account for a student loan which I owe $1,700 on where my minimum monthly payment is $50.00. I paid a lump sum of $1,000 on it and it dropped my credit score by 80 points and I don't know why. My question here is. I have $700 on this student loan to pay off. Should I make the minimum payment, pay another lump sum, or wait until a payment is due which will be in October of this year to boost my score up as quickly as possible and get the debt removed? Nothing Is due as of now until October since I paid a large lumpsum in April.
Edit: The student loan forbearance was applied to my loan so I don't have to make any payments until October but should I still make the minimum monthly payments even if nothing is due now?
Where are you getting your score from? Something else changed, making a larger payment on your student loan and reducing the % owed would not drop your score 80 points.
I'm sorry, I mean 60. I got it from Credit Karma before I learned about myFICO. My balance decreased and my score dropped 60 points.https://i.imgur.com/40qtgTn.png
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Free credit reports (disregard the VantageScore 3.0 score) at:
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Thank you for your reply. This is my only loan. I can pay a lumpsum and get it to 9% but should I do that or make the monthly payments until it's 9%?
The scores from Credit Karma are Vantage 3.0 scores and are often volatile for seemingly no reason. They are not the score that most lenders use - you can get a free FICO score from Experian and it will give you additional reasons for your current score, which may be higher or lower than the Credit Karma Vantage score.
Thank you. I'm paying for myFICO now it my credit score is higher than it was on Credit Karma. I just learned Credit Karma isn't the best thing to use for what I'm trying to do.
Thanks. I'll be sure to check out the link in your signature. I'll be sure to drop it down to 9% now then. I checked it out again on CK and came across this which seems to be because 2 remarks were removed from my account but I have no no idea what a remark it so I might have to research more about it. https://i.imgur.com/40qtgTn.png