Getting a mortgage is a very stressful situation. One of the most common questions that people ask is whether or not their student loan will impact their ability to secure a mortgage or any other loan. This will take a closer look at student loans and just how much of an impact that it can have on your ability to borrow money. So will student loans negatively impact your ability to secure a loan?

The answer is both yes and no. While student loans are unsecured debt and will eat out of your income of what you can afford, your student loans may not necessarily have a negative impact on your credit score. If you pay your student loan on time, your credit score will still be pretty decent. In fact as long as you are paying them off as you are supposed to, student loans are actually pretty helpful to your credit score as bills that are paid consistently and over long periods of time could raise your credit score. They will affect your debt-to-income however, so this could end up impacting your credit score if the loans are pretty high.

Here is a closer look at this. The debt-to-income ratio can be a huge thing when it comes to getting any loan. The reason for this is because these debts take a cut out of your income, meaning that you are able to afford less. This will affect how much of a loan you are able to get rather than whether or not you can obtain a loan. The exception to this is if your debt-to-income ratio is so bad that you cannot even get a loan. Now say that you have three different student loans, where you are paying around $50 a piece for, that number does not seem like too much. However, this means that you are spending about $1,800 a year for student loans. You should also imagine what happens if each of your loans is around $100 each. This can make a difference especially if you do not have a lot of income.

There are some things that you may be able to do about this. First of all, before you even get a student loan, you should avoid using private lenders as they often charge higher interest rates. After the fact, you should be sure that you pay your loans on time. If you have more than one student loan, you should look into consolidating these loans into one. This can reduce the payments and ultimately help you out but you should be sure to speak to a financial planner or lender beforehand to be sure that you are choosing a reputable lender and getting the most out of your consolidation.

Knowing what your credit score looks like, especially with regards to your student loans, can be very helpful. If you have paid off your loans already, you will want to make sure that your credit report has that on there. You also want to make sure that it reflects your recently consolidated loan.

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