How does taking out student loans affect your credit?
Among other things, part of your credit rating has to do with your available credit vs. the amount of credit you are using, correct?
If I take out student loans. how does this affect my ratio?
My ratio is very good right now. I maintain a low balance on my always well-paid credit cards, my car loan is 60% paid off and I have no other debts. Also, I paid off a small student loan, always on time, years ago.
Does any of that matter?
Your debt to credit ratio will be higher due to the student loans but if you continue to pay on time for everything, you shouldn’t see a significant change in your credit rating. And I disagree that debt is debt. Many would consider student loans an investment. YOU are the collateral for that student loan. So I think in general they are much better than other kinds of debt.
