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Paying on deferred student loans to raise credit score? (still in school)

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hornedfrog1985
Established Member

Paying on deferred student loans to raise credit score? (still in school)

Hope everyone is doing good tonight!

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I have a question about my credit score. I have 3 student loans and I know that fico takes into consideration the amount of the loan you took out originally to the amount of the balance remaining. So I have looked to see that if I paid on the loan if it would raise my score even while in deferment. Does anyone really know the answer to this? I actually paid $150 on my loan and on credit karma it says my score went up 5 pts and it shows the only change was that my loan balance just reported as decreased by 7%. I'm not sure if that is definitive for why my score increased. Any input from anyone? The loan is roughly 2 years old, but like I said it is still in deferment while I am still in school. I'm done in the spring so long as they don't delay us anymore due to covid. 

Message 1 of 7
6 REPLIES 6
ccquest
Established Contributor

Re: Paying on deferred student loans to raise credit score? (still in school)

Credit Karma is a Vantage score which doesn't really correlate with a FICO score at all and based on the primer thread I think the main tiers for points on installment loan balances are around 9% and 65% so if you aren't near those, I don't think it matters much.

as of 1/1/23
Current Cards:
Message 2 of 7
Shooting-For-800
Senior Contributor

Re: Paying on deferred student loans to raise credit score? (still in school)

SLs don’t really affect you scores much unless they have missed payments.

My wife’s scores are in the 800s with TONS of student load debt (in forgiveness program)

Pay them if you have no other debt and you want to.

GL!

Rebuild started in 2014  -  $100k unsecured credit in 2017  -  $500k unsecured credit in 2024.

DON'T WORK FOR CREDIT CARDS ... MAKE CREDIT CARDS WORK FOR YOU!



Message 3 of 7
Anonymous
Not applicable

Re: Paying on deferred student loans to raise credit score? (still in school)

Thanks @Shooting-For-800 ! Seriously great to know! 

Message 4 of 7
Anonymous
Not applicable

Re: Paying on deferred student loans to raise credit score? (still in school)

i have 40,000 in student loans, but my scores are not 800.


@Shooting-For-800 wrote:

SLs don’t really affect you scores much unless they have missed payments.

My wife’s scores are in the 800s with TONS of student load debt (in forgiveness program)

Pay them if you have no other debt and you want to.

GL!


 

Message 5 of 7
ccquest
Established Contributor

Re: Paying on deferred student loans to raise credit score? (still in school)


@Anonymous wrote:

i have 40,000 in student loans, but my scores are not 800.


@Shooting-For-800 wrote:

SLs don’t really affect you scores much unless they have missed payments.

My wife’s scores are in the 800s with TONS of student load debt (in forgiveness program)

Pay them if you have no other debt and you want to.

GL!


 


Another anecdote for you, I have $130k and my score peaked at 818 before a bunch of new accounts recently.

as of 1/1/23
Current Cards:
Message 6 of 7
Anonymous
Not applicable

Re: Paying on deferred student loans to raise credit score? (still in school)

thank you, my dream is get to 800.


@ccquest wrote:

@Anonymous wrote:

i have 40,000 in student loans, but my scores are not 800.


@Shooting-For-800 wrote:

SLs don’t really affect you scores much unless they have missed payments.

My wife’s scores are in the 800s with TONS of student load debt (in forgiveness program)

Pay them if you have no other debt and you want to.

GL!


 


Another anecdote for you, I have $130k and my score peaked at 818 before a bunch of new accounts recently.


 

Message 7 of 7
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