Credit Card Center Advertiser Disclosure†
03-17-2013 09:41 PM - edited 03-17-2013 09:43 PM
03-17-2013 09:44 PM
03-17-2013 10:00 PM
So whenever I got a new card, there'd be a piece of mail sent to me telling me things that adversely affected my credit score. One of the things that come up that I'm not sure about is high debt to credit limit ratio or something like that. I'm sure they don't mean my credit card debt which is like 4% of my total limit. Do they mean my student loans?
They're deferred until 2016 and subsidized so I took them out to invest with, but are they negatively affecting my credit card applications? I can pay them off in full right now. Is it worth doing so before I apply for higher tier cards like CSP or request a big credit limit increase (3x Amex CLI)?
I used to get that same message even though my utilization is 1-5%. It was the only reason Amex gave for denying my CLI requests. Well my student loans were paid off last month so I will see if I finally get it. I applied for a credit card last week and didn't get the message so I think that's what it is. No change in score though after the loans were listed as closed.
03-17-2013 10:18 PM
03-18-2013 05:09 AM
my wifes fico score dropped from 789- to 750 when her student loan paid off. FICO said lack of installment loan account (diversified account missing) or some crap like that. she has the house and credit cards reporting. The installment (ie. car loans, boat etc) is in my name
03-18-2013 05:16 AM
It depends on what your score is at. If your score is in 600s, paying it off will most likely help.
03-18-2013 03:34 PM - edited 03-18-2013 03:34 PM
03-18-2013 03:39 PM
I actually make small payments on mine when I can.. say $25 - 50 bucks here and there.
Im prob going to have like nearly $50k when I graduate. In all honest, I feel pretty comfortable with that debt and confident in my ability to repay it. The interest rates are super low, and the investment in yourself is unbeatable! Mine are all Federal Loans, so they will be even easier to manage.