Effect of Student Loan on Credit

[Mo007]

What's the effect of a Student Federal Loan on your credit score or credit report while you are still in school? The payment is deferred until I graduate, but does this help me or hurt until then?

 

Thanks

[Cynic]

Not significant.

 

Installment accounts with a balance equal to or at their "limit" (original loan amount) may be interpreted as a potential risk, but that's debatable; balances and limits on revolving accounts are far more significant.

[Mo007]

Thanks.

[zachzchw]

Not significant.

 

Installment accounts with a balance equal to or at their "limit" (original loan amount) may be interpreted as a potential risk, but that's debatable; balances and limits on revolving accounts are far more significant.

 

 

How about if it reports as WAY over the limit?

Current amount shows as $7875, limit shows as $0.

 

It is in deferment, Im just wondering if the above scenario is having an effect on my scores.

[direred]

Not significant.

 

Installment accounts with a balance equal to or at their "limit" (original loan amount) may be interpreted as a potential risk, but that's debatable; balances and limits on revolving accounts are far more significant.

 

I don't know about "debatable" -- installment loan utilization has been listed on a negative reason for FICO for me on TU since I consolidated. I also just got a decline on EX that listed that as the last reason, though after revolving utilization.

 

It's not a huge factor, but it is one.