Does a student loan and a bank loan affect your credit the same way?
Oct 28, 2008 in
Credit
videogamer1979
I have one credit card ( revolving credit ) and I have one student loan ( fixed monthly payments ). I want to keep one revolving account and one fixed account. Would a bank loan that pays off the student loan look better as a fixed loan? I guess my question is: Do they both count as fixed loans or is the bank loan a more “authentic” fixed loan?
I have one credit card ( revolving credit ) and I have one student loan ( fixed monthly payments ). I want to keep one revolving account and one fixed account. Would a bank loan that pays off the student loan look better as a fixed loan? I guess my question is: Do they both count as fixed loans or is the bank loan a more “authentic” fixed loan?
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2 comments
CreditAlignment.com on October 30, 2008 at 6:45 am
doesnt matter….they’re both ‘installment’ loans on your credit report. i wouldnt take a bank loan because MOST LIKELY the interest isnt tax deductible like the student loan.
i would advise to have 2-3 credits…2 installment loans….can be student loan, auto loan or other loan…and a MORTGAGE!
make sure you keep low balances are on revolving accounts…and you should be go to go.
dolly blaine on October 31, 2008 at 2:14 pm
Credit card debt affects the studies seriously. Lack of concentration, focusing on excessive debts can lead to lower scores and GPA.
Lack of proper attention to studies, lower GPA’s, increased debt pressure can all lead to a point where student drops out from the college.
A high credit card debt can force a student to take up a part time or regular job, which often has a degrading effect on studies.
Though the student credit card is designed to give a good beginning to a person’s credit history but, excessive debt can cause a serious dent to credit score this factor alone can cause serious problems for students.
Due to a bad credit score which is the result of credit card debt, a student can face difficulties in finding apartments for rent.
Same factor can make insurance rates higher or unaffordable for students, because insurance companies find it risky to insure people with poor credit.
Getting a job also becomes difficult when a credit card debt causes poor credit history. The employer also shy away from people with poor financial skills and money management. Read more from: