I have a couple of questions involving my credit report. First, I was just wandering. Technically, I don't have to pay my student loans until 6 months after I graduate. Will it improve my credit score if i start paying them off now, while I'm in school? Second, Unfortunately, I have a few items in collection agency, thats hunting my credit history and I've been unsuccessful trying to cleanse it. These items with collection agency are a joke. I have one report, which is $35 for forgetting to return a cable box when I moved, two reports for $100 each for going to emergency room when I was 18, and last but not least $500, which was a left over bill when I got my tonsil's removed. Anyway, when I was aware of these bills I paid them off in full and I was assured by the collection agent, that it was going to be removed from my reports immediately. To my dismay, I found out later that it takes 7 years before it's expunged. I don't regret paying them off or feel bad for being lied too, but is there anything else I could do to get rid of these items in collection sooner. Thanks
Unfortunately, once you've paid off the collections, there is little incentive for the collection agency to remove them. You have lost your leverage. That said, how old are they? The older they are, the less effect they will have on your credit. I wouldn't pay on the student loans until you have to. You may need the money for something else, and I'm sure that any other way you get it (personal loan, credit card) is going to be at worse terms than the student loan. If you have some extra money, make sure you have an emergency fund of at least 3-6 months worth of living expenses. You'll be in worse shape if you pay the loans and then have some sort of need for money, and then you have to borrow at subprime rates.
