Keeping a Student Loan Credit Score Friendly

Student loans can indeed affect your credit score. You can make it favorable to you, though. Here are some tips:

1. Always pay on time

Poor credit score is always bad news, even for students. Paying on time will show on your credit report and will yield a good payment history. If you’re a student that has a credit card and a student loan, they could actually be a plus to your credit score. They are telltale signs that you can handle your finances well.

2. Be in control of your credit card debt

It affects your credit score more remarkably than an actual loan, however it doesn’t imply that you should focus on it more than your student loan. Student debt doesn’t go away even if you file for bankruptcy in the future.

3. Communicate with your lenders

Inquire with your lenders if you feel you can’t keep up so that you can talk about how you can eventually get back on track with your loan. They could give you a 30-day or 60-day reprieve on your loan, so you need not worry about your payments in the short term.

4. Regularly check credit reports

This should be regularly done by college student so they are in the know of their payments and their loans. Know that some lenders do not give reports to all three credit bureaus and loan reports are not always the same. Be cautious with unauthorized purchases or loan approvals as well and make sure you refute them.

Prior to applying for a student loan, see to it that you can handle it well. It need not be a negative on your credit, given you know what to do to make it work for you-as a student and as a future college graduate.