I'm a student that has just finished his first year at university. I just started building credit by opening a card with Discover back in January. I have been paying my balances in full, and have checked my free FICO score after each statement has posted.
I noticed something different this month, as my score did not rise or drop at all. In the key factors section of my FICO report, I received my usual
- LENGTH OF TIME ACCOUNTS HAVE BEEN ESTABLISHED
But the second was different, and it stated
- PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH: The balances of your non-mortgage installment loans (such as auto or student loans) are high compared to your original loan amounts. As you pay down your loan your balance decreases, which reduces the proportion.
The only loans I have are two student loans, Subsidized and Unsubsidized. My Subsidized was for a total of $3500 and my Unsubidized for $2000. Currently, my Unsubsidized has accrued $50.97
My question is whether I should be making payments towards my Unsubsidized loan, as I had not planned to until the due date: after graduation. Since my credit score moved neither up nor down, I didn't want to risk my credit score dropping.