All of my student loans are on time and have no late payment marks on any report. However, the combined balances are just over $100,000. They're almost all federal and have been consolidated into one loan. Does just having a high balance like that make a negative impact on the report due to a rough debt-to-income ratio, or does it only affect your score when they're in collections, with late payments, etc?
$1700
$2000
My DW has more than you (PSFL) and her scores are around 820.
Her Fico8 scores for car and credit cards are 830-850.
They don't hurt you much (if at all) if you have no lates.
I know alot of ppl may say no but my scores are in the 660 range and the most common message I get is "PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH" I know this is because of my student loans which are about 180K because I keep my util very low. Even when I applied for a mortgage the lender said my profile was very good except the high student loan balance so I think creditors sill give you a side eye and use it as a denial reason when they just dont have any othe reason to deny you. I also have a good DTI.
@sueblue34 wrote:I know alot of ppl may say no but my scores are in the 660 range and the most common message I get is "PROPORTION OF LOAN BALANCES TO LOAN AMOUNTS IS TOO HIGH" I know this is because of my student loans which are about 180K because I keep my util very low. Even when I applied for a mortgage the lender said my profile was very good except the high student loan balance so I think creditors sill give you a side eye and use it as a denial reason when they just dont have any othe reason to deny you. I also have a good DTI.
That's what I was thinking. While just having a high balance itself may not deeply affect your score, it obviously still shows on your report and plays into the decision making from some lendors who place emphasis on debt-to-income ratio.
Credit score doesn't take income into account to measure any debt to income. But as mentioned, that is a very important item that is considered by other creditors when making lending decisions.
My FICO 8s are all about 815-820 right now with ~$120k student loans with an income lower than that. Still got a good refi rate on my student loans again earlier this year (June) after getting decent rates back in Feb 2018.
For sueblue34, I'm not sure what's going on exactly but I feel like there might be some other negative factor in there? Like number of accounts with balances, number of new accounts, age of accounts, etc. My mortgage, auto lending, and credit card lending scores all say "Short Account History, Accounts With Balances, Seeking Credit, Many New Accounts" while the 8 is only positives.
My FICO 8s are all about 815-820 right now with ~$120k student loans with an income lower than that. Still got a good refi rate on my student loans again earlier this year (June) after getting decent rates back in Feb 2018.
For sueblue34, I'm not sure what's going on exactly but I feel like there might be some other negative factor in there? Like number of accounts with balances, number of new accounts, age of accounts, etc. My mortgage, auto lending, and credit card lending scores all say "Short Account History, Accounts With Balances, Seeking Credit, Many New Accounts" while the 8 is only positives.
as of 1/1/23
DTI is a completing different area and discussion.
My DW owes more than her original balances.
I would bet than someone with 50k of student loans and 100k of income would have the same or lower score than someone with 100k of student loans and 200k of income.
I have also played with the Experian simulator and her score does not even move making a $50k payment.
JMO.
Hmm, while looking at my FICO scores on CreditCheckTotal, it lists this:
"FICO® Scores weigh the amounts paid down and balances of mortgage and non-mortgage installment loans (such as auto or student loans) against the original loan amounts. In general, when an installment loan is first obtained the balance is high. As the loan is paid down, the balance decreases. As installment loan balances decrease, they have less impact on a FICO® Score. Having a low installment loan balance to loan amount ratio is considered slightly less risky than having a 0% installment loan ratio. Consolidating or moving debt from one account to another will usually not help a FICO® Score since the same total amount is owed and the score may go down due to opening a new account."
It lists "Amount of Debt" as 30% of your FICO8 score. When I click on the accounts it is mentioning, it takes me to my credit cards and also my student loans. My student loans are on IBR plans to be forgiven after 20+ years and my IBR payment is less than the interest, therefore I will never really touch the principal....
Very helpful info
@Shooting-For-800 wrote:DTI is a completing different area and discussion.
My DW owes more than her original balances.
I would bet than someone with 50k of student loans and 100k of income would have the same or lower score than someone with 100k of student loans and 200k of income.
I have also played with the Experian simulator and her score does not even move making a $50k payment.
JMO.
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