Financial question regarding credit reports and student loans

Every year I get my free credit reports from all 3 agencies around the end of September. I did it today and noticed in the Equifax version both my car loan and federal student loans show up as “Installment” accounts. No big deal, except these are fixed accounts with X money borrowed, to be paid back in a specific time frame for the car and however long it takes for the student loans.

The weird thing is Equifax displays a debt:credit ratio for these installment accounts - based on the original amount of my car payment versus what I’ve actually paid off. Add in the un-touched school loan total and it displays a whopping 79% ratio.

The rest of my credit is good and I’m just wondering if any financial geniuses know how this affects obtaining further financial aid next year, as well as how it may affect me, say, applying for some sort of decent travel credit card.

I’m mystified, but concerned! Geez, what must MY school debt look like??


LOL, 40 views and 1 mystified but concerned comment. Wonder if I’ve caused a flurry of credit checks and mild panic?

I know we have some financial geniuses around here… where are you guys?

Not sure if this is correct but I recall on my credit report that it shows the full loan amount fix until they’re completely paid off. Even then the Loan company also has to report to the credit bureau that the loan has reached lien satisfied (for vehicles) in order for it to lower your % ratio. So the plus thing about loans is that it will affect your score when it is paid off. Usually your score will go up once you pay them off. It is different from a credit card because the amount of credit is revolving where as loans don’t come back if you pay them off. I hope that helps.

Well, that sounds like I’ll get a no on that travel credit card then. Oh well. So glad I already have a car.

I have over $100k in student loan debt. It doesn’t affect your ratios. The installment balance doesn’t factor in - only the balance on your revolving credit factor in (aka credit cards, etc.). Keep these under 30% at the time your credit is pulled each month (not always when your statement comes out) and your credit score will jump. I get to deal with this all the time every day as a real estate agent :slight_smile:

Thank you Amanda! Good to know how it works.