How Paying off Student Loan Debt Affected My 800+ Credit Score: Drop vs Raise
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- เผยแพร่เมื่อ 9 ส.ค. 2019
- In this video I go over the individual factors that allowed me to reach a 800+ credit score and build my credit. I also review how paying off student loans since the beginning of the year has affected my credit score on Credit Karma month to month.
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Gotta love how they incentivize staying in debt
Thank you so much for sharing this. This is insane!! My credit score dropped by 100 points (700s to 600s) after I paid off one of my loans. I was so confused when I checked my credit score, but apparently this is very common. It’s so backwards.
I'm glad it was helpful!
Interested to know if your credit score ever climbed back up. It may if you have other school loans.
Yes, I paid off all my student loans and my credit score is 800+ currently. I still have credit cards that I pay off every month. Hoping to make an updated video about it soon.
Did you own a home during this time?
If I were in debt, I wouldn't care if my score dropped after paying off debt. I'd rather hsve a score decrease than have debt. Besides, once you become debt free, you won't be applying for more debt unless it's for a home or business related.
That debt is a weight no one needs. You’re right. It’ll start to increase after a while because you’re debt free. Student loans are the worst.
I needed this!
It’s always good to keep a low balance until the term is completed
Thank you for the information cause I was struggling trying to figure out what to do with my student loans
You're welcome!
Great editing, keep up the good work. It's awesome you worked hard to pay off your loans, it shows a lot of discipline and sacrifice! I hope they give you (and others) money if they decide to pay off others student loans! Why punish the people that made the sacrifice.
Pay off all your debt and close all open accounts and your score drops to zero (also called indeterminable) this is actually a wonderful thing and what Dave Ramsey teaches! If you don’t borrow money, you don’t need a credit score! Focus on building wealth, not your score. (Yes you can buy a home with a zero score; it’s called manual underwriting and it’s the same exact mortgage you would get if you had an 800 score)
Religious nonsense 🙄
@@clbo9878 look at your debt if you didn’t have it what could you buy cash? Has nothing to do with religion, has everything to do with not owing any debts
I was denied a credit card because I have a high student loan balance, despite having 800+ credit scores across all three bureaus. Credit scores don't matter as much as people claim them to be.
Thank you for this video I was crying 😢 last month
You're welcome!
What if I get a car loan for a couple thousand and pay it over a 70 month period. Sure you pay a couple hundred in interest but then you artificially increase your score. And when you pay it off, you prove that you can handle a loan for future which will help towards future loans.
Hi this is really helpful! Can you make a video on how you reached 800 credit score even when you have student loan? Greatly appreciate your vids!
Yes, I can! I plan to do an updated version of this video soon. Thanks for stopping by 👋🏾
Thank you for your video! It was relieving to hear that the unfair drops to your score due to paying off student debt like a good person is supposed to were only temporary.
It's Oct 2019. 1 month ago (Sept) I took a $6k student loan. To date, I've paid half back. Today my credit score came out, I dropped like 50 points! My future felt ruined!! And I barely started adulting!
But hopefully this drop is only temporary for me as it was for you! I basically have two more semesters to go, so that's 2 more times that a $6K will be applied for my tuition. Does that mean my credit score will drop further and further? That's a gigantic total score drop!
I didn't even need to begin repaying my student loan until I graduate in June 2020. I thought I was doing exceptionally well, repaying so early! Also, I keep up-to-date with my general credit card payments anyway.
I don’t trust credit karma. There numbers is off use experian it’s so accurate.
I thought it was ONLY ME going through this!
Are your student loans bundles together as a total ($30k ) and than broken down into groups like A,B,C, etc? And when you say you paid off a student loan that mean a you mean you paid off a single group like paid off group C than you paid off group B ? Bc I’m currently doing that and I need help I hope you can understand what I’m asking
They were all from the same loan servicer (Navient) so bundled together, but you could (and I did) pay on them one at a time. I payed the min. payment for the group of loans, then put all my extra money into the highest interest loan until it was paid off (debt avalanche).
Ok thank you !! ☺️🙌🏾
Mine actually dropped 50 points over 2.5 years paying off 75% of my debt. I think it’s because I stopped using credit cards and have no other debts
Oh! That makes sense. I still use my credit cards, paying them off every 2 weeks - 1 month. Great point ⚡️
Mines is almost paid off but it’s my longest history…I’m trying to buy a house but don know if I should pay it off before buying a home…
Hi did all your scores change equally or was one reduced more than the other after paying the student loan off?
Both my scores (Equifax and Transunion) changed equally. However, there has always been around a 10 point difference between the two.
@@athenaabarnes okay thanks a lot I really appreciate you. My score is in a good place in part because of you thank you again!!
I had a 750 and paid off my car and 1 student loan and it dropped 50 pts.
Mine dropped 9pts. I think my only frustration is that I plan on buying a home. I’ll have to pay off some student loans months before the process starts I guess.
Yes, that or wait until you've secured the mortgage.
@@athenaabarnes thanks! I’ll keep that in mind for sure.
When paying off student loans, do you have to get them to agree that they will remove it after you pay it off?
Unless it is in default it will automatically show up as paid in full.
@bonjourBARNES Sorry if this is a stupid question but what does "in default" mean? And thanks for your help. I appreciate you.
@@GunninRebel55 It's all good. Basically if you haven't made "required" payments. Unlike the current forbeance where you don't have to make payments.
Mine dipped 20 points because of average age of credit history went from 4 years to 1 year and 4 months. Whatever. Worth paying off that 10,000 and my score went back to 730 a couple months later anyway.
I’m hoping my score does as well.
I just paid mine off the other day. Will have to wait till the next report to find out.
did you score jump after paying your student loans?
I just abolished my $98,000 student loan debt through total nelnet total disability. I’m currently a 734 credit score. I busted my a** to raise it to that high. Now I am terrified to see my new score once they close my account. I have 7 credit cards though that I use to minimum usage to keep my score fluctuations and utilization current. Hopefully that will help my score increase. Yikes 😳!
I kept my credit cards open, and my scores are back to what they originally were. Hopefully the same happens for you as well.
@@athenaabarnes I just got a notification. My score dropped 51 points. I’m okay with that because I’m 100% debt free. I have 9 credit cards, but my mix is horrible now. But I’m still okay with this!
@@athenaabarnes how do you feel about self lending loans?
I have seed-fi, I signed up last month
Just seeing this... I have never heard of them.
Love your hair. Very beautiful
Thanks!
I paid off the rest of my student loans in one lump sum and it dropped my score by like 54 points.
Did it recover?
@@10Krirey Yes, it took about six months or so to see it start raising again and my credit score is currently higher than what it was prior to my student loans being paid off.
But debt free alot you to keep more of your money thereby not need to be lent any money through Loans so just pay them off and dont worry as some points are recuperated the following month and some are some pts. Aren't. They take months and months
They want 11+ accounts and 2 or less inquiries 🤦🏽♂️
America wants you to stay in debt forever, that’s why people are penalized for paying them off smh!
I dont care about a credit score. In order to have it you need to be in some form of debt and I dont want to live in perpetual debt and owing.
Temporarily sacrifice 40-100 points and be debt free or Spend the rest of your life paying back Sally Mae with your 700+ credit score and debt utilization. The choice is yours people!
Thx u very much, I owe 25k in loans n frankly I'm losing hope with the govt forgiving my loans.
Happy to help! Yeah, I just saw there was other court case against it. Good luck either way ✨
Same for me smh
This woman’s voice is awful
Omg, your voice sis. Could you stop drawing out each word and just say each word in a normal way? For example, the word "good" is pronounced "good" not "goooood?". The word "year" is pronounced "year" not "yeeeaaaar?". No hate but I can't even watch this video because of how you speak, lol.