Your credit score plays a crucial role in determining future interest rates on credit cards and loans, as well as your getting approved for financing on a car or home, or even just to rent an apartment.
Here are five things you need to understand about your student loans’ impact on your credit score, and your financial future:
- Making student loan payments on time can give your credit score a BIG boost.
- While it only prolongs the inevitable, deferment will NOT hurt your score.
- Do not default on your payments! It can leave you with a damaged credit history. Consider deferments, forbearance, or a different payment schedule.
- Paying off your student loans TOO quickly can hurt your score.
- Taking the full 10-years or beyond to repay can also hurt your credit. Keep yourself on track with reminders and a budget.