Question : Does a student loan and a bank loan affect your credit the same way?
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?
- asked by videogamer1979
All Answers:
Answer #1
doesnt matter....they're both 'installment' loanson your credit report. i wouldnt take a bank loanbecause MOST LIKELY the interest isnt taxdeductible like the student loan.i would advise tohave 2-3 credits...2 installment loans....can bestudent loan, auto loan or other loan...and aMORTGAGE!make sure you keep low balances are onrevolving accounts...and you should be go to go.
- answered by CreditAlignment.com
Answer #2
Credit card debt affects the studies seriously.Lack of concentration, focusing on excessive debtscan lead to lower scores and GPA.Lack of properattention to studies, lower GPA's, increased debtpressure can all lead to a point where studentdrops out from the college.A high credit card debtcan force a student to take up a part time orregular job, which often has a degrading effect onstudies.Though the student credit card is designedto give a good beginning to a person's credithistory but, excessive debt can cause a seriousdent to credit score this factor alone can causeserious problems for students.Due to a bad creditscore which is the result of credit card debt, astudent can face difficulties in findingapartments for rent.Same factor can make insurancerates higher or unaffordable for students, becauseinsurance companies find it risky to insure peoplewith poor credit.Getting a job also becomesdifficult when a credit card debt causes poorcredit history. The employer also shy away frompeople with poor financial skills and moneymanagement. Read more from:
http://www.credit-card-gallery.com/article/273,10_ways_how_student_credit_card_debt_can_turn_your_college_life_into_hell
- answered by dolly blaine
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