Author Topic: Does a Federal (Stafford) loan affect credit in any way?  (Read 8166 times)

Offline AJK

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Re: Does a Federal (Stafford) loan affect credit in any way?
« Reply #15 on: February 16, 2012, 03:31:15 PM »
Hmm... I've gleaned similar information from a Google search to the tune of enhancing credit score due to "credit variety", but I am still skeptical about that, and here's why:

A couple months ago I leased a car. Since then, I have applied for credit cards from both Citi and Chase, and both gave me a significantly low credit line of 1k (before the lease I was getting around 16-30k credit lines).

Of course it can just be a coincidence, but it sure doesn't feel like it.

There are many factors involved - type of credit is only 10%, whereas, for instance, length of credit history and new credit are 25% combined. So, yes, in the short term you may be penalized a bit for signing up for CC's following a lease, but in the long term, you'll benefit.
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Offline michael

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Re: Does a Federal (Stafford) loan affect credit in any way?
« Reply #16 on: February 16, 2012, 04:51:11 PM »
There is some speculation here. Everyone needs to be careful. Does it affect your score when it is the deferred stage or just when it is in the repayment stage?

Don't know for certain, but friends at my school told me it really starts to hurt when it goes into repayment, but has negligible effects while in deferment.