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Established Member
veerob982003
Posts: 16
Registered: ‎06-20-2007

Does having a LARGE amount of student loans hurt my credit?

Hello,
 
Just wanted to get everyone's opinion on my large amount of student loans in regards to my credit score.  I am a brand new physician, therefore, I have a huge amount of student loan debt.  However, they are all in a good status, consolidated at an excellent rate and currently deferred.  Does having a lot of student loan debt even being in a good status hurt your credit score or prevent you from obtaining credit?  SInce I am a doctor, will most lenders understand that going to professional schood is VERY expensive?  I am in the process of trying to rebuid my credit (low to mid 600s) to obtain a business loan to start my own practice.  My credit really took a "hit" being in school so many years and struggling to survive on student loans and work-study.  My income (working for someone else) is not a lot, but I would like to appy for a credit card with a higher limit.  I recently applied with CCCU and I am awaiting their response.  I have noticed from comments on the board that CCCU really likes to watch an applicant's "debt to income" ratio.  With a high amount of student loans (over 100K) and an income just under 100K, do I have a chance of getting approved?  I have
 
1 collections account with CPA that I am working with the OC (Charter Communications) to have deleted...CPA is giving me -ELL
 
3 late payments over 3 years with Ford Credit (SUV has been paid in full for 2 years); I have tried a GW letter with Ford with no response...just put a letter on PFB last nite to Ford
 
1 late payment to Capital One that should fall off in September due to a gw letter (late payment occurred in Sept 2006 and Cap 1 wants to see a year of on-time payments b4 deletion)
 
Merrick Bank:  charge-off with balance scheduled for deletion in Oct 2007.  Tried numerous time to make payment arrangements and never was successful.  After the stress and being so near deletion, I let it go
 
HSHB Card:  Charge-off with $0 balance.  Have tried gw letter and got back some strange letter stating that even if I was a service-member, I still had to pay my bills ??? No idea what they are talking about (I am not in the military).  Have put letter on PFB but address PFB had is different than address on credit report
 
I have a couple of sub-prime like Capital one and First Prem....The utilize is high....around 84% and I am working hard to get those down.
 
My business partner (also phys and future husband) has good credit (all scores over 750) so we probably just apply for the loan in his name.
 
Any response or thoughts on how to proceed would be a great help
 
Thanks!!
Established Contributor
dog
Posts: 560
Registered: ‎05-03-2007

Re: Does having a LARGE amount of student loans hurt my credit?

see credit scoring 101, hang out in these forums, and follow the advice from here....
 
student loan debt is usually a score helper, as long as the loans are in good standing.  i have 80 grand in student loans that i defer, forbear, whatever i can do to not have to pay them but keep them in good standing. 
Frequent Contributor
jenkins
Posts: 278
Registered: ‎04-29-2007

Re: Does having a LARGE amount of student loans hurt my credit?

i have 18k with SC student loan corp, i have them deffered.  I have like a lil over 2k with sallie mae im taking the money i was using to payment my SC Student loans and paying off my salliemae loans quicker. like dog said as long as they are in good standing your ok.

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New Contributor
taz
Posts: 65
Registered: ‎06-19-2007

Re: Does having a LARGE amount of student loans hurt my credit?

I got hit with this as a negative on all three of my reports for my $24000 student loan balance: "The balances on your non-mortgage credit accounts are too high." My FICOS are TU- 748, EQ- 783, EXP- 759. We will be buying a new house in three years so I will be upping the payments on them to knock that balance down before we apply. My payment history on the student loans is perfect, but I was paying minimums on a great consolidation interest rate. I would have started before now on overpaying them but I wanted to zero my CC balance before taking on that one.
Established Contributor
trinigal
Posts: 578
Registered: ‎06-18-2007

Re: Does having a LARGE amount of student loans hurt my credit?



taz wrote:
I got hit with this as a negative on all three of my reports for my $24000 student loan balance: "The balances on your non-mortgage credit accounts are too high." My FICOS are TU- 748, EQ- 783, EXP- 759. We will be buying a new house in three years so I will be upping the payments on them to knock that balance down before we apply. My payment history on the student loans is perfect, but I was paying minimums on a great consolidation interest rate. I would have started before now on overpaying them but I wanted to zero my CC balance before taking on that one.

Based on those scores I doubt you're getting hit:smileysurprised:.  Not that I'm hating on your excellent scores :smileyvery-happy:You can't really pay too much attention to the "advice" the score reports give you. I find a lot of it doesn't make any sense when you compare it to what's going on on your actual report.  I personally think those things are generic.
 
Anyhoo, as mentioned before SLs help if they're in good standing. 
 

 
New Contributor
taz
Posts: 65
Registered: ‎06-19-2007

Re: Does having a LARGE amount of student loans hurt my credit?

[ Edited ]
I agree, trinigal-- a lot of the process seems to be making payments on time, low util, and letting time go by to get rid of any baddies. This forum is great, because people are so informed and supportive

Message Edited by taz on 07-09-2007 12:14 PM
Established Contributor
dog
Posts: 560
Registered: ‎05-03-2007

Re: Does having a LARGE amount of student loans hurt my credit?

for your scores, i would assume all of your student loan debt.
Established Contributor
trinigal
Posts: 578
Registered: ‎06-18-2007

Re: Does having a LARGE amount of student loans hurt my credit?



dog wrote:
for your scores, i would assume all of your student loan debt.


Hello!!?? Who you tellin'........sheesh!!!
 

 
New Contributor
taz
Posts: 65
Registered: ‎06-19-2007

Re: Does having a LARGE amount of student loans hurt my credit?

Hehe- no problem, dog! I'll have AES start sending their bills to "Dog, c/o ficoforums." They should be OK with that. In return, I'll make a phone call to FICO management and see what I can do.
Frequent Contributor
chartley3
Posts: 486
Registered: ‎05-23-2007

Re: Does having a LARGE amount of student loans hurt my credit?

With the exception of a Mortgage, Student loans are the second best debt to have showing on your credit report providing that they are in good standing.

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