Question by Diamondprincess24: How do student loans affect your credit score?
Do they factor student loans into your debt/income ration?
Does it affect your score?
Im not in default/im still in school!
Im trying to improve my credit score just payed off three things, How do i get my score higher?

Best answer:

Answer by Alex
Student loans do effect your score. Right now the account is not in default, so it’s not a negative entry. However, it won’t positively effect your score until you start making payments.

To build a credit score, look into a secured credit card. Charge a small amount (definitely less than 30% of the credit limit) and make on-time monthly payments. A secured card means you put the money down up front. The credit limit will be equal to the amount you put down. Creditors do this to ensure they can take the money if you miss payments. Shop around before applying to a secured credit card. Some of them charge outrageous fees and interest. Also make sure the card reports to the credit agencies, otherwise it’s not building your credit score.

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I am trying to manage my credit better and I have read on here that it’s best to use less than 30% of your total credit allowance, or else your credit score might drop. When figuring out how much of my credit allowance I am using, do I factor in how much I owe on my student loans as well? What about a car loan that I am a secondary signer on? Does that go on my credit score as well? Thanks!

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