Wait for Higher Credit or Buy and Grow Now?

1 Reply

I'm currently working on my credit, (I have student loans I want to BEGIN to pay off. I haven't started but am starting Monday), but I would like to know if I should start talking to lenders now. I'm currently unemployed, but my last 2 tax records show I was making $70k in salary. I fear that if I wait for another year, as my credit will be higher, my 2020 tax return will show I haven't made much.

Should I speak with lenders now, see what I can get offered, and search for deals on that, all while building up my credit? Or should I wait a year until my credit is much higher, and my student debt is paid off? I could technically pay all my student debt off immediately, but it's my understanding that paying it off in payments, monthly, is better to build credit.

Any and all answers will help. I recently got all 3 of my credit reports via AnnualCreditReport[dot]com, which allows for free credit reports annually. My score is around 620. That said, because of COVID, I've heard you can get reports on a weekly basis. Haven't tested this tho.

Any assistance will be great! Happy to share more information. Most my work in online, so I can work remote and do contract work wherever. I feel like that should be added.

@Chris Martinez :

Without steady employment, there's no way you're going to get pre-approved for a mortgage. No need to reach out to lenders until you're working again.

I don't see the point in checking your credit every week. My bank shows me my credit score for free and is updated monthly.

What's the interest rate on your loans? It only makes sense to pay them off if:


  1. The rate is very close to or higher than an expected investment return. E.g. if your loans are at 3% and you can get 7% in the market you would be "losing" the spread by paying them off instead of using the extra cash to invest.
  2. Your DTI is way out of whack due to the student loans.

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