i have 30,000 in student loans and have just started to repay. i have no credit card debt and my truck is payed off. will my credit score be high or low, and will this debt affect me if i try to get a mortgage loan? I am making 60,000 a year
2006-09-08 18:26:39 · 6 answers · asked by tykush21 1 in Business & Finance ➔ Personal Finance
No, the student loan debt will not hurt your credit score - as long as you are paying it off on schedule. It is a normal, expected debt that shows you have taken steps to secure your future. In some cases, lenders may consider your time spent in school as time spent in the profession making you an even more attractive loan candidate.
Any debt will affect how much people will be willing to lend you - they will take into consideration how much you will need to be making to pay off any other debts as well as the mortgage you are seeking. Still, if you have good credit, most will lend you significantly more than you can easily repay as they know you are not likely to let yourself get into a situation that will jeopardize your credit - and so you will have to determine for yourself just how much you can afford to borrow.
There are many internet sites that will give you your credit score. Some charge $10-20, others are "free" so long as you remember to cancel the trial offers you must sign up for to get the "free" credit score report.
2006-09-08 18:36:40 · answer #1 · answered by happymom 2 · 1⤊ 0⤋
Student loans are not considered in the same class as other loans and debt when you apply for future loans. As long as you handle it responsibly and pay on time, you should be fine.
The balance owing will be taken into consideration, as will your payments, if you are considered for a mortgage, but you are making a decent salary, so you should be okay. Just make sure to continue paying them off on schedule. Also, until you have other loans to pay off, you might consider kicking a little extra into your payments on student loan debt, as that will help you pay them off earlier.
2006-09-08 18:39:29 · answer #2 · answered by Bronwen 7 · 0⤊ 0⤋
Your credit card score should be high, because you have taken on debt. It doesn't make since at first, but that is the case, so long as you continue to make your payments on time. Do not ever miss a payment or it will hurt your credit score!! Your mortgage company will look at your salary vs your debt to insure you can make payments. Usually your mortgage campanies will allow 33% of your monthly income as your limit (obviouslly this is not set in stone) for what you can afford.
2006-09-08 18:36:50 · answer #3 · answered by brian_wcu 3 · 0⤊ 0⤋
If you get a mortgage this will improve you credit score, what you want to do is get a low rate mortgage in this way, you can save money money towards paying off your student loan as you did with your truck
2006-09-12 14:22:50 · answer #4 · answered by Anonymous · 0⤊ 0⤋
Assuming you have not defaulted on your student loans, your credit score should be fine for mortgage lending purposes.
The loans are only equal 50% of your current salary, but the more important question is how much are the monthly payments of the student loan and what percentage is the minimum payment of the student loans are of your monthly gross income.
For mortgage lending, the longer the length of time you have spent employed making $60,000, the more you improve your chances of getting the loan.
2006-09-08 19:26:35 · answer #5 · answered by DaMan 5 · 0⤊ 0⤋
Any debt you have hurts, but student loans hurt less than most debts. If you have consistently paid your bills on time, your credit should be pretty good.
2006-09-08 18:33:56 · answer #6 · answered by metatron 4 · 0⤊ 0⤋
that is a lot of money in student loans. even though you pay your bills on time, just the fact that your overextended can hurt you.
2016-03-27 03:41:07 · answer #7 · answered by ? 4 · 0⤊ 0⤋