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Credit score dropped by 20 points - Should I pay off student loans?

Date: Mon, 05/28/2018 - 00:30
Submitted by Kripp on Mon, 05/28/2018 - 00:30
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Paid off student loans. My credit score dropped by 20 points. What should be my next step? Should I take out an installment loan and start making payments?


Don't panic, by making the other bills or debt payments on time, you can build a good credit score. However, it will take some time. I would like to suggest you avoid installment loan. Instead of taking out a new loan, try to earn extra money by considering a part-time job. Ig the nest debt loan is huge, then you can take out a consolidation loan to pay off the current one. What is your income status? If you come with more detail, we can suggest more option.


Submitted by Sanders Patricia on Thu, 05/31/2018 - 06:09

Sanders Patricia

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Don't go for a installment loan or a payday loan. 20 points drop is not a substantial one, it may be caused by sudden credit utilization ratio drop.
What is your credit score now? You will get the same loans at 750 as 770.


Submitted by tiarajoseph11 on Thu, 05/31/2018 - 05:59

tiarajoseph11

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The problem with installment loan is that it has a very high rate of interest. If you really want to take out a loan, then borrow from a credit union. They charge low interest rate on a loan. Alliant is one good option.


Submitted by ditchdebt on Fri, 06/08/2018 - 05:24

ditchdebt

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