How to pay off student loan

twoinanddone
Tue, 14 Jul 2020 01:51:07 +0000

Credit scores are a combination of things, and the more she has, the quicker her score will go up. Checking account, savings account, a mortgage, a credit card, a car loan, a student loan, etc. The best and easiest is to get the checking and savings accounts. Next the credit card. She should never have a balance at any time in the month for more than 30% of the credit line. If she needs to buy something that uses up the credit limit, just pay it immediately. It’s okay to make several payments during the month. My daughter used to do this with airline tickets

When D first graduated, she only had a low limit credit card because she needed it before she started working. She also got a car loan but I was on that loan because I got a much better rate. Her score used to go up and down, from 690, down to 635, back up. Within 2 years of graduation it is now in the mid 700’s. My score also went up because she paid that car loan off quickly, and since I don’t have a car loan, it was a new type of credit so up mine went too.

One note on the student loans…Nancy Pelosi included a $10k forgiveness of federal student loans in one of the stimulus packages. I don’t think it was in the last one that passed the house (HEROS), but I’m hoping it reappears. My daughter just moved, sold the car, and has some extra cash and was planning to pay off the student loan. I advised she hold off to see if she might benefit. Worth the interest payment for a few more months.