Closing out a student loan, will it clear my credit report? (pay, rate)

[Garfunkle524]

One of my student loan payments last year was about 35 days late due to a clerical error. I maintain that it wasn't my fault and have fought it but I've been unsuccessful. Anyway, I'm going to be paying the balance on this loan in a week or two. Will paying the balance clear my credit report of the late-payment mark? Can I negotiate to have them clear the blemish if I pay the full balance?

This is the only blemish on my report and has affected my credit score significantly.

[freemkt]

I think it might be worthwhile to call your lender and propose a 'deal' where they remove the late payment from your payment history (and thus from your credit report) in exchange for paying off the loan fully.

Your chances of success are probably greater if you have a really low interest rate, as the lender would have an incentive to get full payment, which would allow them to re-lend the money to someone else at a higher interest rate.

[Garfunkle524]

Originally Posted by freemkt

I think it might be worthwhile to call your lender and propose a 'deal' where they remove the late payment from your payment history (and thus from your credit report) in exchange for paying off the loan fully.

Your chances of success are probably greater if you have a really low interest rate, as the lender would have an incentive to get full payment, which would allow them to re-lend the money to someone else at a higher interest rate.

Thanks. This loan is the lowest rate of all my loans so perhaps the "Deal" will be successful!