why would it not affect your score if your utilization is higher?do you have to call lender or it just falls off ? i dont get why on your cr it should stop coming up as an obligation
A stafford student loan is not a line of credit. So utilization of what? --- When a bank is determining how much money to lend on a mortgage the two biggest factors for them are: income, and current debt obligations. If you have more debt obligations (loans, credit cards, autos, additional mortgages etc.) then your income (aka your ability to pay) is adjusted accordingly, as you have other debt payments in addition to your mortgage that you will have to pay each month. Whether to approve the loan and the rate is determined based on credit score, but not the actual loan
amount.
And as far as my scenario - the broker at that particular bank told me that they would not hold it against me (meaning my income level) if I had cashed 3rd party checks that were paying my student loans (which at the time I did not - I was paying directly from my bank account). Meaning that their bank would be willing to lend me more money if i had 3rd party checks. (assume bank X will lend a person who makes 100K annually with good credit 300K at 4%. But bank X will only lend 250K to the same person if they have 100K in student loans. etc. Bank Y however, is willing to lend 300K provided there are 3rd party checks written. Make sense? These are only ballpark examples)
Of course its on your cr. But a bank can lend you as much or as little money as they feel like. There is no law that a person with income X credit of Y and util of Z gets Loan A etc
I was only discussing stafford loans in terms of getting a mortgage - I was not addressing at all how it affects your score