student loan?

Question

when you take out a student loan for school, will it show up on your credit report? If it shows up do they use it to calculate your fico score as far as debt to income ratio, or if you make timely payments does that play into your score? Is it held against you if you try to buy a house.

Answer 1

It absolutely DOES show on you're credit report, right away. You do not have to be out of the grace period, meaning your making payments, before it shows up- it shows up right away. Any request for credit is reflected on your credit report and student loans are no exception. The difference is that it is looked at as a "soft hit" on your credit, meaning it will not lower your FICO score substantially. Mortgage and credit card applications are instances of "hard hits", which can lower your score significantly, even if you are denied the credit.

If you are looking to buy a house, student debt will most probably not affect you negatively, as long as you make your payments on time. If you have a very large amount of student debt, it may lower the amount of the loan the bank will offer you.

I have student debt and just got pre-approved for a mortgage last week, so this is all fresh in my head. I was told by my mortgage officer that paying off as much debt as you can is the best thing you can do to ensure a good mortgage amount, but if you are looking to purchase a home right now, make sure you have money for a down payment, closing costs, attorney fees, etc. and don't put all your money to paying down the student loan. Good luck!!!

Answer 2

If will not show up until you finish school and start making payments. Once it do show they will start calculate it but it will be a good thing as long as you pay it on time.

Answer 3

no it will not shown on credit report