Community Leader<br> Valued Contributor</br>
Community Leader
Valued Contributor
Posts: 1,370
Registered: ‎06-09-2008
Re: Medical school loans...

Initially, you'll see a small drop in your score from any hard inquiries, for each new account, and also because your Average Age of Accounts will drop.  How much drop you'll see will depend on how many new loan accounts are opened, your current AAoA, and when they are opened.  Overall though, it shouldn't be a massive change.  Installment loan utilization has very little impact on your score.

 

Your debt-to-income ratio has no impact on your credit score, but it can substantially impact your ability to get credit.  Most applications for credit (especially car and home loans) will ask for your income and other debt obligations and factor that information into how much they are willing to lend you.    I doubt that any current credit accounts would reduce your limits just because you took out student loans, but you may see future CCs not offer as high of a limit until you establish an income that shows you can comfortably pay off those loans.