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marc2
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Subject: Students loan: Do they affect credit score
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Fri Jan 09, 2009 1:40 pm
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| I have a student's loan which I have not yet repaid. I have checked my credit report and it is still not reflected there. I will start repaying them soon. Can anybody suggest how to handle student's loan effectively so as to build up a good credit history. |
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fireyone
Joined: 26 Feb 2008
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Posts: 4500
8812 Magic Points
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Sat Jan 10, 2009 3:27 am
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| Student loans effect your credit score like any other loans (that means credit cards also). As long as you pay on time your credit should be fine. But you do want to pay more than your monthly accrued interests, otherwise you will never pay off your student loan, and the balance will just get higher and higher. |
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Doc
Joined: 02 Dec 2008
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Posts: 203
Location: McKinney, TX
954 Magic Points
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Sat Jan 10, 2009 8:45 pm
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Yes, they do impact score, good or bad...
They are generally calculated at a decent interest rate, but on a very long long term...
They argue that the term is designed to make it affordable... The reality is, it is to make them profitable...
Kind of like your mortgage... It's a 30 yr deal, at 6%... Doesn't sound like much, but it equals tens of thousands of dollars when all is sadi and done...
fireyone is right... pay extra, lower the balance, and be done with them!
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-Doc Compton, Omega Credit Repair
I provide info for free, & all I ask is that you visit my site... I don't wanna sell you anything, I just wanna increase my traffic, and push my site up in the search engine rankings...
http://www.omegacreditrepair.com |
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Justin
Joined: 17 Jul 2006
Justin's page
Posts: 1298
28935 Magic Points
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Mon Jan 12, 2009 9:13 am
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Hi marc2
Yes, student's loan like any other loan affect your credit score if you become delinquent. When you apply for a Federal Student's loan, you will get all the information about repayment of the loan from the creditor. Now, if you default, it will be a violation of the promissory note which you have signed with the original credit. So this delinquency will be reported in your report and lower your score.
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All the Best 
Justin |
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