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
Full Version: Effect of Student Loan on Credit
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.
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.
Thanks.
QUOTE(Cynic @ Mar 27 2007, 01:22 AM) 
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.
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.
QUOTE(Cynic @ Mar 26 2007, 10:22 PM)
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.
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.
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