Reply
Regular Contributor
hopingsoon
Posts: 231
Registered: ‎03-09-2013
0

Re: Does having a student loan help or hurt your credit?

Boo! My latest student loan just hit my CR and dropped my score 12 points. It shows as "pays as agreed" and deferred payment but it stil dropped my score, probably because it added debt and lowered my AAoA. 

 

I'm getting motion sickness from all these ups and downs!



Starting Score: FAKOs EQ 537 TU 497 EX 517
Current Score 7/11/13: FICOs EQ 650 TU 659 EX 655
Goal Score: 675 Who am I kidding? Goal Score: 750+ :smileyhappy:


Take the myFICO Fitness Challenge
Contributor
Sitori
Posts: 268
Registered: ‎10-25-2012
0

Re: Does having a student loan help or hurt your credit?

That must be why mine dropped from 700 to 677 . That plus the new credit card. I wish I had known it counted as a new account before I got it! Lol.
Does it count as an inquiry too bc I have 8 last year!

-------------------------------------------------------------------------------------------------
EQ 701, TU 685, EX ?
Wallet:
Amazon store $2500(10/12), Cap1 $1500 (10/12), Discover $1700 (11/1/12).
Established Contributor
InvincibleSummer3
Posts: 640
Registered: ‎11-20-2012
0

Re: Does having a student loan help or hurt your credit?


Sitori wrote:
That must be why mine dropped from 700 to 677 . That plus the new credit card. I wish I had known it counted as a new account before I got it! Lol.
Does it count as an inquiry too bc I have 8 last year!

Mine didn't. There was no credit check for a federal loan, so if that's what yours are there shouldn't be.

Valued Contributor
FocusedAndDetermined
Posts: 6,288
Registered: ‎01-05-2013
0

Re: Does having a student loan help or hurt your credit?


Sitori wrote:

I'm still trying to figure this stuff out too.

 

My CR says that I opened 6 accounts last year....but I was so confused because I only opened 3 new credit cards. Apparently the other 3 are showing as student loans. Now its stating I have a total of 9 accounts open...but I only actually have 4 credit cards.  I had gotten a student loan back in 08, but was paying on it until I got back into school last year. It went into defferment, and now I have taken out 2 more student loans last semester. I think I have a total of around 10,000 in student loans. 

 

Are these considered installment loans?  Do these look good in a mix with having credit card accounts?

 

I have to continue taking more loans out each semester for the next 2 years! ugh!  I wont be paying on them until I'm done with school and get a job. So I'm not sure how this is affecting my report either.

 

Since it's no longer being paid on, is it still reporting? Is it just reporting as a new account with a high balance?  Is this hurting my score or doing nothing?

 

I have to apply for new credit in the next couple of months, and now I'm concerned that they will look at these "new accounts" with high balances, and deny me.


Yes, student loans are installment loans, and can help a little with credit mix.  Since you were paying on your earlier loan, that account should have a good history.  Not sure how lenders factor in students returning to school, and placing loans back into deferrment.  Perhaps someone with experience will post.

Contributor
Sitori
Posts: 268
Registered: ‎10-25-2012
0

Re: Does having a student loan help or hurt your credit?

@hopingsoon.... I got an alert yesterday and it shows both my recent student loans from last semester were just sold. It says the same thing as yours "pays as agreed", but all of them are in deferrment since I'm still in school.  My EQ score went up 33 points!!! I went from 660 to 693!!  I have no clue if this has anything to do with it....I paid off my Cap1 last month so I'm sure that has something to do with it as well but it was only a couple hundred dollars.  My loans were just opened last Aug. and Oct. so it has to be hurting my AAoA too. I don't know if them being sold is showing something different and added something to my score, or if it was just a coincidence lol.


-------------------------------------------------------------------------------------------------
EQ 701, TU 685, EX ?
Wallet:
Amazon store $2500(10/12), Cap1 $1500 (10/12), Discover $1700 (11/1/12).
New Contributor
Dreamwalker
Posts: 107
Registered: ‎02-28-2013
0

Re: Does having a student loan help or hurt your credit?

[ Edited ]

To summarize, from my experience (my servicer is Great Lakes, if it matters):

 

-Drops AAoA

-No HP

-Had two semesters on one loan, not sure what will happen with the next one, but I intend to consolidate, so it will probably create a new account anyway.

-Reports 'paid' every month, regardless of whether I make a payment or not.

-Sometimes counts in Debt-to-Income, this can usually be explained to a real person™ as deferred.

Walmart Store Card: $600 & Amazon Store Card: $1200
Amazon.com Visa: $500 & Chase Freedom: $3000
US Bank REI Visa Signature: $5500
Discover It: $100

TU-654 [03/18/2014]
Regular Contributor
hopingsoon
Posts: 231
Registered: ‎03-09-2013
0

Re: Does having a student loan help or hurt your credit?


Sitori wrote:

@hopingsoon.... I got an alert yesterday and it shows both my recent student loans from last semester were just sold. It says the same thing as yours "pays as agreed", but all of them are in deferrment since I'm still in school.  My EQ score went up 33 points!!! I went from 660 to 693!!  I have no clue if this has anything to do with it....I paid off my Cap1 last month so I'm sure that has something to do with it as well but it was only a couple hundred dollars.  My loans were just opened last Aug. and Oct. so it has to be hurting my AAoA too. I don't know if them being sold is showing something different and added something to my score, or if it was just a coincidence lol.


33 points, nice! I'm jealous lol.



Starting Score: FAKOs EQ 537 TU 497 EX 517
Current Score 7/11/13: FICOs EQ 650 TU 659 EX 655
Goal Score: 675 Who am I kidding? Goal Score: 750+ :smileyhappy:


Take the myFICO Fitness Challenge
Frequent Contributor
ronstar7
Posts: 363
Registered: ‎04-30-2013
0

Re: Does having a student loan help or hurt your credit?

So if anyone can help, it would be great!!

 

My oldest student loan is from 2004, not late it was either refinanced or renewed with another lender. Because of that the status says closed and it is not reporting on my CR's. my AAOA is showing 1 year and 9 months, which is not true. Why arent these old loans from 9 years ago not showing? Wouldnt that boost my AAOF and show that I have actually had credit for a while now and not 9 years ago? Also if it does how can I get it to begin showing? Or should I just leave it be?



TU:627
EQ:608
Goal Score:650

Take the myFICO Fitness Challenge

Established Contributor
InvincibleSummer3
Posts: 640
Registered: ‎11-20-2012
0

Re: Does having a student loan help or hurt your credit?

Tradelines can report up to ten years after closing, but a lender is not required to do so. They can drop them off your reports early.

Frequent Contributor
ronstar7
Posts: 363
Registered: ‎04-30-2013
0

Re: Does having a student loan help or hurt your credit?

No I want them to show because wont that be good for my AAOA? It looks good if youve had credit longer right?



TU:627
EQ:608
Goal Score:650

Take the myFICO Fitness Challenge


myFICO is the consumer division of FICO. Since its introduction 20 years ago, the FICO® Score has become a global standard for measuring credit risk in the banking, mortgage, credit card, auto and retail industries. 90 of the top 100 largest U.S. financial institutions use the FICO Score to make consumer credit decisions.

>> About myFICO
FICO Score - The Score that matters
Click to Verify - This site chose VeriSign SSL for secure e-commerce and confidential communications.
Fair Isaac Corporation is a BBB Accredited Financial Service in San Rafael, CA
FOLLOW US Social Media Facebook Twitter Pinterest Google+