I’m in the process of rebuilding my credit and have been on a tear of cleaning EVERYTHING up. I’m doing good of cleaning (so far at least; Have letters of removal just waiting on them to be deleted) but my next concern is getting my student loans down. My loans started at $ 2700 for each (2 loans) and I have paid without missing for 3 years. (I did have 5 late payments in a row that I’m working up the courage to GW 2011-2012). Now with the extensive knowledge ive acquired from this forum I now know that even though i have paid on time for 3 years (the minimum amount) that is only half the equation. Now I know I should always pay more. Im also understanding that even though I have been paying my loans every month for 3 years, my interest is the reason my loans started at $ 2700 but now one is at (2750) and the other is at (3200) (*above my actual starting loan amount/High balance*). Soo, i have been saving up some money and could put down maybe $ 800 on each to get it below my starting amount and have even just thought of maybe taking out a loan on my 401k (since it isn’t that much) and from my understanding, 401k loans dont show on credit report. Would this be something you guys would recommend? Should I maybe wait until my collection removals actually delete then write my goodwill and include this huge payment as a gesture with my GW statement asking for forgiveness of the lates back in 2011 -2012?
Any idea of how much installment loan’s current balance to original amount ratio is calculated? If I would make a lump sum payment to get them down what is the ideal percentage to have them at? (I know anything is better than what it is now but *ideal*) I don’t want to pay them all off since they are the only installment tradelines active right now since I’ve already paid my car off.
thanks for ANY suggestions!!