Surprising Bump in Credit Score

[alt.an_em]

I checked my credit score seven months ago and it was in the low 500's. At that time I was over 120 days behind on my student loan payments and my total student loan debt was around $40,000.

I have since paid off the past-due portion of my student loans but the balance remains about the same. The loans are now in deferment since I am enrolled in a graduate program. I have taken on additional student loans as well.

Today I checked my score and it was in the upper 700's. I am very suprised by this. Is it possible that paying off the past-due debt and placing my loans in deferment could have had such a dramatic effect? Will my score go back down once the loans are out of deferment? I also had a maxed out credit card that has since been paid off. Perhaps that had more to do with it? Thanks in advance for your input.

[atatbl]

I checked my credit score seven months ago and it was in the low 500's. At that time I was over 120 days behind on my student loan payments and my total student loan debt was around $40,000.

 

I have since paid off the past-due portion of my student loans but the balance remains about the same. The loans are now in deferment since I am enrolled in a graduate program. I have taken on additional student loans as well.

 

Today I checked my score and it was in the upper 700's. I am very suprised by this. Is it possible that paying off the past-due debt and placing my loans in deferment could have had such a dramatic effect? Will my score go back down once the loans are out of deferment? I also had a maxed out credit card that has since been paid off. Perhaps that had more to do with it? Thanks in advance for your input.

 

1. Yes, 2. No (as long as you make payments), 3. Partially... but more so the cleaning up of the past due... credit utilization is not nearly as detrimental as past due... at all.

Edited September 29, 2013 by atatbl