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I've made consistent payments to my college loan for 3 years, but will this debt help or hurt me in getting a loan?

I know it affects the debt to income ratio but i have good credit and it does show that i always make responsible payments. by Martin_McNulty001923 from Marietta, Georgia. Oct 24th 2013 Reply


William J Acres (William_Acres)
#73 ranked lender in Arizona - 8,728 contributions

Making payments on time regardless of who the debt is owed to is always a good thing, and will not adversely effect your credit.. .. I'm a Broker here in Scottsdale AZ and I only lend in Arizona. If you or someone you know is looking for financing options, feel free to contact me or pass along my information. 480-287-5714 WilliamAcres.com

Oct 24th 2013
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Bill Dunger (billdunger)
#18 ranked lender in Washington - 35 contributions

This is actually helping you. It sounds to me you have what we call a good seasoned tradeline. It does get counted in your overall debt ratio calculations for loan qualification but it looks good that you have made these payments on time for 3 years. Hopefully the balance owed vs. original balance reporting is near or around 40%

Oct 24th 2013
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Kiernan Brown (KiernanBrown)
#50 ranked lender in Michigan - 149 contributions

so long as you can cover the payments and afford the new house debt you will be fine.

Oct 24th 2013
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Phil Dumouchel (PhilDu)
#32 ranked lender in South Carolina - 2,249 contributions

Payment history affects your credit, regardless of the type of loan or credit card - as long as it is reported to the credit bureau. The stronger your credit the easier it is to be approved for a mortgage, and the lower the interest rate will be. Strong credit also makes it easier to be approved with a high DTI, I can go as high as 55% in some cases depending on the type of mortgage.

Oct 25th 2013
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