The Benefits of Student Loans
Having the right knowledge when it comes to student loans is very important to Americans these days due to the fact that 44.2 million of them have a student debt.
At this point, we will focus on student loans and how it can affect a student’s credit score.
By reading this article, you will be educated on how a student loan can contribute on your score and what techniques you should follow in order to maintain the best possible score that you can have.
Understanding Credit Score
If you are curious on who calculates your credit scores and how it is calculated, just read this article further.
Most of the time, FICO issues credit score since they are the most popular company in their industry.
When it comes to how it is calculated, there are a lot of factors that are considered for that such as:
Credit History Length
What are Included in Your Credits
Amounts that Needs to be Payed
These elements corresponds to 10%, 15%, 10%, 35% and 30% of your credit score.
A credit score is made by using mathematical calculations. The exact calculations that FICO has come up with will not actually be transmitted.
If you want to know your credit status, you can several ways for it, in fact, there are some bureaus and companies that can provide you with the information that you need.
If you really want to check your credit score online, you can check a website called Credit Karma.
We highly recommend that you obtain a summary showing how you performed, this can be done by requesting a credit report once a year from a couple of credit companies such as Experian, TransUnion, and Equifax.
An Excellent Credit Score Should be Maintained
In order to maintain a great credit score, you have to find out what would make it good, very good and exceptional.
Based on FICO standards, they are classified as follows:
A score between 670 and 739 is a GOOD score
A score between 740 and 799 is a VERY GOOD score
A score between 800 and 850 is an EXCEPTIONAL score
At this point, you already know where the favorable scores are classified, what you should know next is how it can be maintained. This can be done by simply paying your credits.
This would mean that you have to pay any type of credit that you have in full amount once they are due.
You can be easily helped in renting an apartment, obtaining a home loan, buying a car and even get more school loans if your credit score is favorable. Just like most cases, those people who have a role between you and your goals will certainly take a good look at your credit score.