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.

Give your answer to this question below!

Technorati Tags: affect, Credit, loans, Score, Student

Question by T S: What are the credit factors for private student loans?
I am trying to accumulate financial aid for this upcomin fall semester and it is a lot harder than it was a year ago.

I’ve tried applying to 3 different institutions for private student loans and we keep getting denied. And I also have a cosigner. My cosigner has the same credit score that she did a year ago (when she cosigned on my loan for last year) and she isn’t getting approved other…..so what else factors into the loan decision? What makes this year different from last year?

Also, what other sources of financial aid can I try…private student loans were my last resort.

Best answer:

Answer by Dana M
Each bank uses its own criteria. They also can come up with their own method of calculating the credit score. They don’t all use FICO. Debt to income ratio could be a factor, and the loan you took out is now showing on your cosigner’s credit as a new debt. (Since she is equally liable on the loan, it shows on her credit as if she were the borrower.) All of the banks have an appeal process. Work specifically with the bank that gave you the loan last year (if the rate and service are good) and have your cosigner contact them regarding the credit denial reason and the appeal process.

Add your own answer in the comments!

Technorati Tags: Credit, factors, loans, private, Student

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!

Technorati Tags: Credit, Does, Factor, Into, loans, Money, Score, Student, That