Students loans' effect on FICO scores

Anonymous · ‎07-20-2008

For a FICO score - is student loan debt (Stafford) not as derogitory as credit card debt? Does it hurt at all?

haulingthescoreup · ‎07-20-2008

I think you're asking about the util (utilization) --amount owed (debt) divided by the credit limit.

If so, you're right, FICO scores are more sensitive to revolving/ CC debt than they are to installment loan debt.

It's fine to pay as scheduled on the SL, but do your best to pay down the CC debt.

* Credit is a wonderful servant, but a terrible master. * Who's the boss --you or your credit?
FICO's: EQ 781 - TU 793 - EX 779 (from PSECU) - Done credit hunting; having fun with credit gardening. - EQ 590 on 5/14/2007

Anonymous · ‎07-20-2008

If student loans are your only installment loan they may actually be helping your FICO scores. On installment loans, once the principal is paid down a little bit (after a few months on most loans) you get a little boost in score....but then you see few points for decreased utilization over the life of the loan because its just not weighed that heavily.