Student Loan or No way?

[Anonymous]

So here is my situation. as some already know, i am working through school with no students loans and no type of debt for it. My scores are reletively high for my age and everything, BUT would you recommend a student loan to maybe add some credit? maybe take out a 5k student loan and use that as my installment to also help me gain some more credit besides my 2 credit cards? I would have no issues with making a payment on the loan, i could probably pay double the minimum payment of it! Just curious to see what people will say on this.

Thanks!

Ryan

[Tuscani]

Rather than a sutent loan, how about a small personal loan. Maybe $1000? And pay $100 payments for 6 months and then PIF.

[Anonymous]

Is it easier to get a personal loan, or a student loan? I am just thinking with my credit history, that i won't qualify for a personal, but rather a student loan. Any input?

[Tuscani]

Personal loan is probably the hardest.. Home and Auto are collateral, and the Fed usually backs student loans.

If they say no, save up the $1000 and deposit that as collateral. Just make sure they don't report it as secured. Unsecured looks much better.

[Nick777]

I hope you filled out your FAFSA on time (you might get some free grant money, too). If you can get a subsidized Stafford loan, the government pays the interest while you are going to school. Instead of using the student loan to pay for things, you could invest the money and pay small amounts on the loan while going to school. That way, you will have an installment loan that will gain some history and it won't cost you any interest money. In addition, you could make money off of the investment (put it in CDs or something that has a guaranteed rate of return). Technically, the student loan people might not want you to do this (I'm not sure, I know they say you can't buy a car with the money), but the reality is that once you get money for living expenses, it is free for you to do with as you please.

[Boswd]

I've always believed taking out a loan for the simple sake of using it for your credit score is just a very dangerous and bad idea.   I mean think about it for a minute, you are taking on debt when most people want to get out of debt.    You never know what the future can hold, loss of job, unexpected medical expense,  car repairs etc etc.  If you don't need a student loan don't take one out or a silly personal loan.

I would take that extra money and either invest or put it in a high yeild savings account and store yourself up a nice nest egg/emerency fund.  Save your money not give it away.  

If you are young and have a credit card or two your credit will grow.  I mean you already have said you have pretty good scores. 

I just think taking on debt for basically no purpose is foolish and could potentially be a burden.