cancel
Showing results for 
Search instead for 
Did you mean: 

Student loans

Tylerray0722
Established Member

Student loans

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?

Message 1 of 12
11 REPLIES 11
ChemE_Bear
Regular Contributor

Re: Student loans

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.


Fico8 1/20:
Fico8 05/21:
AU:
Message 2 of 12
Birdman7
Super Contributor

Re: Student loans

That’s right, paying down a loan did not drop your score. Something else occurred.

Whether or not you want to pay off the loan depends on whether you have another. If it is your only loan, pay it down to 9% and let it ride as long as it can.
-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 3 of 12
Tylerray0722
Established Member

Re: Student loans

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 

Message 4 of 12
AllZero
Super Contributor

Re: Student loans

$1 you can obtain your 3 bureau FICO 8 scores and reports at Experian or CreditCheckTotal (part of Experian). Cancel in 7 day or less to avoid the re-occurring monthly charge. Wash, Rinse, and Repeat as needed.

AnnualCreditReport. Free weekly 3 bureau online reports through April 2021.

Free credit reports (disregard the VantageScore 3.0 score) at:
Credit Karma for weekly TU and EQ reports.
WalletHub for daily TU report.

Message 5 of 12
Tylerray0722
Established Member

Re: Student loans

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%?


 

Message 6 of 12
ChemE_Bear
Regular Contributor

Re: Student loans

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.

Fico8 1/20:
Fico8 05/21:
AU:
Message 7 of 12
Tylerray0722
Established Member

Re: Student loans

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.

Message 8 of 12
Birdman7
Super Contributor

Re: Student loans

If your loans are on deferment, I don’t think they’re counting towards scoring right now anyway, so I would wait until the deferment period is over and then pay it down to 9% if you have a reason for a score a boost at that time. If not then what is the point? When it hits 9% you’ll get a score boost; when you pay it off you’ll lose the boost.

Did you go look and see if anything else changed? Was there a real score change on fico? Or you don’t know because you were monitoring CK?

Read the Scoring Primer linked at the top of my signature to familiarize yourself with scoring.
-Scoring wisdom: Credit Scoring Primer, Payment History, Amount of Debt, Length of History/New Credit, Mix/Disputes/Freezes/Searches, Mortgage Scores/Negative Reason Codes/V.9, Helpful Links,
Anonymous’s Reason Statements Thread,
iv's friendly statement to reason statement concordance,

ccquest’s Workbook to calculate metrics.
Clean/Thick/Mature/No New Revolver - 8,9; Clean/Thick/Mature/No New Account - 5/4/2.
Correct Ag.Util. under 5% all times. (Oldest/avg varies. Estimates above.)
Real world mortgage maxes are: EQ5-818, TU4-839, EX2-844.




(Everything said is JMHO and is not endorsed by FICO or MF. I have no affiliation with either, just a grateful member.)
Message 9 of 12
Tylerray0722
Established Member

Re: Student loans

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 

Message 10 of 12
Advertiser Disclosure: The offers that appear on this site are from third party advertisers from whom FICO receives compensation.