(Closed) NWR — How much does paying my student loans on time help my credit?

posted 9 years ago in Money
Post # 3
752 posts
Busy bee
  • Wedding: August 2010 - Ocean View Villas/Jasmine Seafood Restaurant

I’m not positive on how much it actually makes your score go up, but another way to boost your score is to pay a little bit more than the amount due every month.  Even if just a couple bucks, it gets recorded as you paying more than the min and will help to boost your score more quickly.

Post # 4
10363 posts
Sugar Beekeeper
  • Wedding: September 2010

Well, you could look at it the opposite way – paying them on time won’t help a ton, but not paying them on time will send your credit score down the tubes really, really fast! Student loans aren’t considered as “negative” as other types of debt (like credit cards, etc), so I wouldn’t be terribly concerned. But making more than the minimum payment will really help you (as long as that isn’t at the expense of paying down other debt with a higher interest rate).

Post # 5
18628 posts
Honey Beekeeper
  • Wedding: June 2009

The estimate is that payment history is 35% of your FICO score and the amount owed is 30% of your FICO score.  You probably won’t see anything happen on your credit score right away but it will improve with time, as will paying down the loans.  I agree that you should make sure to pay more than the minimum.  I don’t know what your interest rate is but on most loans, at the beginning you are paying almost all interest with the minimum.

Post # 6
289 posts
Helper bee
  • Wedding: December 2010

you can track your credit score for free using creditkarma.com. it will also let you see what hypothetical acts would do to your credit. but, i agree with crayfish – it will hurt your score to not pay.

Post # 7
195 posts
Blushing bee
  • Wedding: June 2010

It may not help your score a great deal, but as @hotwings said, it will be better than not paying. Plus, the more you pay now, the less debt to income ratio you will have when trying to refinance, buy a house, get a loan, etc. I am running into that now. I have about $50,000 in school loans, back make less than that and was told my debt to income ratio is too much. UGH.

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