What effect will student loans have on my FICO score?
I have consistently had a FICO score between 720-740. In the past year, I have returned to graduate school. I have taken student loans in the past year in the amount of roughly $30,000. My FICO has now dropped to ~670. Can students loans have this kind of effect on FICO score? Is there any way I can minimize the effect of future student loans on my FICO? Does having student loans affect FICO better or worse than carrying debt on credit cards?
Your credit score decreases when you take out a new loan, line of credit etc.
What you need to do is pay the loan on time each month and as the amount of the loan descreses and the payment history remains good, you’re score will go back up.
I would check to make sure something else wasn’t reported on your report by mistake. That seems like a significant drop.
