student loans notaffect FICO??

Discussion in 'Credit Talk' started by Ender, Apr 17, 2001.

  1. Ender

    Ender Well-Known Member

    The post I did previously is listed below and this is what my question pertains to.. does it really NOT affect the FICO unless you default or go bad on this? Roni - do you know the answer to this??

    I am considering just leaving a balance of $50 on the 3 creditors I have loans with.. I have perfect records with each. Also, now my next pay date is for the year 2003, sometime in June I believe.. so I can just let these hang till then and try and build good history? Anyone know the optimal way in building good credit with this??

    I have about $10K left in student loans.. with 3 different creditors. I know I can pay the entire balance off by this June/July. My plan is to pay all three creditors all but
    $50 on each on.. so I will still owe a total of $150.

    These loans have GREAT history.. meaning no lates or anything. I just started paying this last year as well.. I am on the 5 year plan for each I believe. Now, my question is would this be the optimal way in doing this? I plan on paying the remaining $50 on each one maybe in about 3 years from now or so.. that way, the tradeline stays open for a few more years.

    Does anyone know for sure or does it not make a difference and I should just pay the entire balance by june/july? Thanks in advance everyone!
  2. Dustin

    Dustin Well-Known Member

    Re: student loans notaffect FI

    I have heard that they don't have very much effect (2-3 pts.) on FICO until they are almost paid off. I am not sure of the exact FICO points, but I guess like everything else about FICO, no one will know, and it depends on the rest of your report. i.e. if you have lots of baddies, it won't matter as much; but if you have all good it will do a little better.

    Just remember: No one knows. FICO is a very top secret formula that even the inventors don't understand. Just go by others experiences, but no one will ever give you an exact answer (not even FICO people)...

  3. Ender

    Ender Well-Known Member

    Re: student loans notaffect FI

    ... the only reason why I am asking is because I would want longer tradelines with installment loans reflected on my report. I thought that the student loans would be a definite plus on this.. so I am wonder if they really are or are not.

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