Does Debt-to-Credit Ratio hurt when dealing with student loans? My student loans currently show I'm over 100% on my Debt-to-Credit Ratio. Does that affect me negatively? I'm currently in deferment for another month. Also, this isn't debt to income, but debt to credit ratio.
It's regarding my student loans and not a credit card. My scores are higher, but I wonder how much of an effect it has. Actually, it's income based and not under deferment anymore. I was in school and so it was automatically deferred.
I asked a similar question not too long ago and got some very helpful answers. Basically, you could get at least an 825 if everything else was optimal.
1/2019 - "highest fico 8 score with student loans"
Are you on IBR and seeking loan forgiveness as a goal?
Not intending to seek loan forgiveness, but that sounds nice! Just curious how, if at all, it affects my score negatively. Thanks for any info!
I chose income based payments to pay higher interest cards faster. There's no reason to pay 2-3% student loans over higher interest credit cards. Few people are eligible for student loan forgiveness. I'm not one of them, so it's not something I've heavily researched.
SLs are do not impact CRs like credit cards or even regular loans.
They are almost invisible is you have no lates.
They payment is part of your DTI but the balance is not important.
YMMV but both me and my wife have large SLs and it has not affected us negatively in regards to optioning mortgage, car loans, or credit cards.
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