My mom tells me that student loans bring your credit score way up, is this true?
2006-12-19 20:05:31 · 4 answers · asked by Lauren S 2 in Business & Finance ➔ Credit
No, students loans in and of themselves will not bring your credit score "way" up. Any loan will have a positive affect on your score, as long as you pay it on time. Keep in mind it usually takes YEARS of "seasoning" for a loan to affect your credit; don't expect big jumps in 6 months to 1 year. Try more like 3-5 years, if you pay it on time.
The bottom line is: building a good credit history takes time...and that's just what goes into the formula - your "history".
2006-12-20 01:03:47 · answer #1 · answered by Kevin K 3 · 0⤊ 0⤋
Making payments on just about any reputable loan will improve your credit score. Missing payments will destroy your credit.
Careful with student loans though. They have a low interst but they are non-bankruptable. People who are unable to complete their field of study really regret these things.
2006-12-20 07:24:31 · answer #2 · answered by KC 4 · 0⤊ 0⤋
Only once you start paying it off six months after you finish school. Of course it can also hurt your credit if you make late payments.
2006-12-20 05:44:47 · answer #3 · answered by Sandie 6 · 0⤊ 0⤋
Yes, if you can afford to pay it back and don't miss any payments. Any loans will boost up your credit!!!
2006-12-20 04:36:32 · answer #4 · answered by a9113257311 3 · 0⤊ 0⤋