7 steps to keep your student loans from affecting your credit score

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• 7 Steps To Keep Your Student Loans From Affecting
  Your Credit Score

The average college student graduated with
35,000 in student loan debt in 2017, and that
number has been rising steadily over the past few
years. If youre one of these students or you
want to avoid adding to the statistics, its
important to keep your loans from affecting your
credit score and making life more difficult than
it needs to be.
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Here are 7 steps you can take to make sure your
student loans wont get in the way of your
finances or ability to get a home or car loan
down the road.

• Step 1
• Pay your loans on time. This one seems
  obvious, but remember, if youre not paying your
  bills on time in general, student loans are even
  less likely to affecting your credit scorefor
  better or worse. Show up for loan payments when
  theyre due. Dont take out a loan you cant
  afford. If something happens and you need an
  extension, talk with your lender about options.
  They may be able to help you if it looks like
  your financial circumstances have changed or if
  something unexpected has happened that makes it
  hard for you to pay when you were supposed to.
  Some lenders have payment plans in place
  specifically designed for students in transition,
  so make sure you ask about them before defaulting
  on a payment because of unforeseen circumstances.

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• Step 2
• Understand how each type of loan affects your
  Credit Score. Some types of loans are less likely
  to impact your credit score than others, but its
  important that you understand which types are
  considered riskier and therefore take longer to
  get approved for. Thats because credit scoring
  systems consider any negative factors impacting
  your finances very seriously. Federal loans are
  considered very safe since they come with
  income-driven repayment plans if you cant make
  payments on time. However, if you have private
  student loans, they may not be seen as favorable
  since they generally dont offer these features.

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• Step 3
• Pay in Full, on Time. If you are late on a
  student loan payment, even by one day, it will
  count against your credit score. But if you pay
  off your entire balance before its due, you will
  avoid paying any interest or penalties. That way
  you can ensure that when your school loan is
  reported to credit bureaus, they have no reason
  to ding your score for missing payments. The more
  positive information they have about your
  financial behaviorlike being consistently on
  time with paymentsthe better off your score will
  be over time. Remember that bank loans arent
  included in federal lending records so dont
  worry about them affecting your report.

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• Step 4
• Refinance. Once you start making payments on
  your student loans, see if there are better deals
  out there on your original loans. Refinancing is
  something many people overlook when taking out
  student loans. You can find lower interest rates
  with other lenders and some loan programs may
  offer special protections like forbearance,
  deferment or income-based repayment options that
  will help keep your monthly payments down while
  you pursue another degree or change careers. Make
  sure you check into any plans that allow for
  deferred or graduated payments, which can help
  manage unexpected expenses by offering more
  breathing room at first when youre not earning a
  full salary yet.
• Step 5
• Become an Authorized User on Family Members
  Account (if Necessary) If youre serious about
  cleaning up your credit score, it may be
  necessary for you to become an authorized user on
  a family members account. But remember, you must
  do so with their permission, and they will
  ultimately be responsible for any late payments.
  If you agree to be added as an authorized user
  without letting them know beforehand, your
  request may hurt your relationship more than help
  your credit score.

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• Step 6
• Refinance student loans with a private
  lender. Private lenders are willing to give more
  flexible payment options than most federal loan
  programs, which can also help your credit score.
  While interest rates are higher, youll have one
  less creditor for your monthly bill. Many
  students have turned their situation around by
  refinancing with a private lendereven if they
  had defaulted on their federal loans. As long as
  you meet certain criteria, many loan companies
  will consider refinancing even if youre already
  in default.
• Step 7. Refinance student loans wisely
• Refinancing student loans may help you save
  money in interest over time. But before you take
  out a loan, make sure its going to be worth your
  while. Know what other lenders are offering and
  look for a low-interest ratewithout application
  fees or prepayment penalties. You may be able to
  get a better deal refinancing federal student
  loans than private ones. Be aware that
  refinancing will change which credit bureau is
  reported to, so carefully check with each of them
  to see if any have lowered your score. If not,
  you might need to wait a little longer before
  applying again. Also note that a hard inquiry
  could lower your score by a few points
  temporarily until it normalizes again after being
  added to your report.

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• Address - 13100 Wortham Center Drive, 3RD FL,
  Houston, 77065
• Email - info_at_grandluxcredit.com
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• Website - Grand Lux Credit
• Blog - 7 Steps To Keep Your Student Loans From
  Affecting Your Credit Score