How much do student loans really help to build your credit score?

  1. Laura Wells profile image73
    Laura Wellsposted 3 years ago

    How much do student loans really help to build your credit score?

    After they are paid off, how much do student loans impact your credit score? From what I've heard they negatively affect it a little before you pay them off. What about while someone is making payments? Basically the main thing I want to know is does the positive effect taking them out and paying for them has improve your credit score by any significant proportion, or is it extremely miniscule like I've heard?

  2. creditcomedy profile image44
    creditcomedyposted 2 years ago

    Credit Comedy's quick answer is:

    Credit Cards or revolving lines of credit increase your credit much faster than fixed loans or installment loans (i.e. student loans).  And yes, anytime a trade-line or an account on your credit report closes it does negatively affect your credit because an closed account stops the payment history which in turn is one of the top factors in generating your credit score!!!

    Answered by:
    Creditcomedy.com (Responder)

 
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