Student Loan Payoff vs. Credit Score?

[Melanie P.]

Hello

 

SL Questions:

 

As one pays off the balance of their installment SLs, how does this ratio (i.e % utilization) affect their credit score?

 

Unlike a credit card, the SL balance is not going to be 'charged up' again (finished degree), and such a high amount it will not be PIF unless one hits LOTTO. Payments can stretch out for 10+ years. I know a long SL tradeline will be beneficial to credit score due to age, but how does credit score reflect actual balance for a consolidation loan over $50,000?

 

How will FICO model adjust if all other credit information more or less remained consistent? Does amount also affect credit score (i.e SL debt of $15,000 vs. SL debt of $75,000)?

 

For example: estimate ~$3000/year payoff -

 

{estimated balances}

Deferment: What is credit score?

Year 1: Balance $48,434 What is credit score?

Year 2: Balance $45,879

Year 3: Balance $43,365

Year 4: Balance $41,234 What is credit score?

Year 5: Balance $38,432

Year 6: Balance $35,456

Year 7: Balance $32,122 What is credit score?

 

Thanks!

Edited February 7, 2007 by Melanie P.