More Open Accounts = Lower Score: Over a borrower’s life, he may have taken out up to eight separate loans to pay for school.
Each of those loans has a different payback amount, interest rate, and payment terms.
Lower Payments = Higher Score: When a credit report is evaluated, the total amount of a borrower’s monthly minimum payments is taken into account.
Student loans however, no matter how small, cannot simply be forgotten.
Student loans were so easy to get in college, and so easy to forget.
Your first bill may arrive right after you graduate, ushering in your new bill-paying, over-financed life.
You also may have a hard time paying off your loan if you’re too busy paying off the credit card you were given a t-shirt to apply for.
The more credit and loan accounts a person has open, the lower his overall credit score.
Though by consolidation, older accounts will be merged into a single account, thereby lowering the amount of open credit lines on a credit report.
An improved credit score will be important when a person enters the working world and wants a new car, apartment, or charge card.
Here are some tips for borrowers that can help them as they enter the job market.
Everyone has things about his college experience he tends to throw out after graduation.
Whether it was the pictures of the spring break in Panama Beach or the textbooks you couldn’t sell back, we all have things we want to put behind us as we head out into the work force.