Do student loans affect your credit to the same degree as any other loan?
or are they less affecting due to the benefits of the loan, or a more “need” for that loan than other personal or car loans. i hope what i am trying to ask makes sense, thanks for the help
i am not talking about not paying the loan; i just mean having the loan. does it hurt your debt to income ratio in the same way.
If your asking what will happen if you don’t pay on a student loan, the answer is, it’s reported as a negative on your credit history.
I don’t think they do, but they do affect your credit. So, you should try to a make arrangements or have the loan deferred. Talk to someone about this, so you don’t get a bad mark on your credit report. If you can prevent this, do so, it will be to your advantage.
A loan is a loan, fico doesn’t care if it’s for a mortgage or an education.
know that student loans survive bankruptcy
I’m not an expert on these matters but I do know that some types of non-payment are viewed more seriously than others. I also know that defaulting on a student loan really makes a person look bad in the eyes of creditors. I don’t remember why it is viewed in that way but I do know that this is the case. So, it falls into the category of one of the payments that you definitely want to always make, no matter what your circumstances. Student loans carry a very great weight.
The same and even more so until you start paying them off.