Student Loan Collection Account Balance, does it affect my score?

Student Loan Collection Account Balance, does it affect my score?Student Loan Collection Account Balance, does it affect my score?
AshleyHaumn asked 3 years ago

So, the only negatives I have left on my EQ report are 2 collection accounts from old student loans. ($ 729 and $ 1120 balances) I know these have a negative impact on my score and I plan on paying them off as soon as I am able. My question is: Does the actual balance impact my score? Would i expect any type of increase if these were shown as paid off? I have heard that the dollar amount doesn’t matter per se, but I also think this is counting towards my total credit usage. This is only with Equifax as there are no negatives on my TU or EX.

 

Since I plan to apply for a mortgage at the end of the year (if things pan out) I would make a point to pay them off quicker. If they don’t have much of an impact, I would prefer to wait 2 months or so.

Register New Account
Reset Password