Frequent Contributor
Posts: 654
Registered: ‎11-08-2012
Does having a student loan help or hurt your credit?

I am a Nursing Student that has been trying to rebuild my credit for the last 7 years (due to a bad divorce-I paid my bills in full, the ex didn't and it kept reporting on my credit). At that time I cut up all of my credit cars and paid off my house and car loans.


I've worked really hard on getting everything off of my credit (all I have left is 1 judgement against me that will fall off in June of next year) and then there will not be anything negative on there.


I pulled my credit report back in April this year and my score for Experian was 780. I was so proud of all of my hard work. I signed up here today and pulled my credit again and now it reports 710?? Smiley Sad  Is it possible that my student loan going up is the problem? In April I only owed $11,500 and now it's only $15,000 so I can't imagine it making this much of a difference.


I only have the following on my credit:  1 OLD cc opened in 1985 and has been closed for a good 10+ years, but still reports on there (shows never late). My old mortgage account on there (paid off in 2006, shows never late), my student loan (never paid on it yet because I'm still a student-shows never late) and then back in April I opened up my first cc after many years to establish some credit again-which shows never late. It's only a $300 limit and I charge on it every month and pay it off a week or more prior to it being due. It's an unsecured cc with Orchard (which has now been sold off to Capital One).


So is it possible that the amount of my student loans going up has decreased my score that much??? I don't see how.


What is my next step? Should I apply for another cc this early (7 months after I got the other one)?


My bank said they would give me a small $1000 to help me establish more credit next year when the judgement against me falls off (a judgement that was done against me w/o my knowledge and I didn't find out about it for years).


Any help appreciated. Thanks

TU: 819 EQ: 816 EX 809