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What is the impact of student loan on credit score?

Curious about student loan

What is the impact of student loan on credit score?

Like any other loan, a student loan can have an impact on your credit score. If you make your payments on time, it can have a positive impact on your credit score and demonstrate your ability to manage debt responsibly. On the other hand, if you miss payments or default on your student loan, it can have a negative impact on your credit score and make it more difficult to obtain credit in the future.

It's important to note that a large amount of student loan debt can also impact your credit score by increasing your debttoincome ratio, which is the amount of debt you have compared to your income. Lenders often use debttoincome ratio as a factor in determining creditworthiness, so having a high ratio may make it more difficult to obtain credit in the future.

Overall, it's important to make your student loan payments on time and in full to avoid any negative impact on your credit score. If you are struggling to make your payments, it's important to communicate with your lender and explore options for deferment, forbearance, or alternative repayment plans.

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