How Different Debt Impacts Your Credit Score 

Debt is something that most people have. And if you don’t have it, well then you are very lucky! For the rest of the world, it’s important to know how different debt impacts your credit score. Since your credit score is the key to unlocking the best of the financial world, this is something you need to know.  

How Does Student Loan Debt Impact Your Credit Score? 

Have you ever taken out a student loan and wondered if it was going to impact your credit score or not? Just so you know, student loans do impact your credit score, in more ways than you might care to admit.  

At the end of the day, student loans are considered an installment loan. Since it’s not considered revolving credit, which is read differently than an installment loan.  

It also doesn’t matter which kind of student loan you have. Both federal and private student loans register the same when it comes to your credit score.  

How Does a Car Payment Impact Your Credit Score? 

Taking out a car loan impact your credit score. When you first apply for a credit score, it adds a hard inquiry on your credit report. That itself can impact your credit score, so make sure you’re okay with that before you proceed.  

As long as you plan on paying your car payment on time, there is no harm in having a car payment. A car payment can be a good thing on your credit report because it shows that you have good payment history.  

An auto loan is one of the best things you can have on your credit report to help you build your credit score. It’s also the one thing that can ruin your credit report if you ever get it repoed. Keep in mind that a car loan is counted as an installment loan.  

Paying on time will help your credit score rise, which is the end goal of having your credit in good standing. 

How Does a Mortgage Affect Your Credit Score? 

Are you wondering if a mortgage affects your credit score? It does! A mortgage affects your credit score in more ways than you thought.  

Right when you first take out a mortgage, your credit score will be impacted. Since a mortgage is usually one of the largest loans you will ever take out, it’s usually a big deal on your credit report.  

As you make payments, your credit score will go up. Just keep paying your payment every time and that score will keep going up. Your credit score will reflect that you are good on making payments. So don’t worry, but do give it some time to balance out. Remember that payment history is everything when it comes to your credit score.  

How Does Medical Debt Impact Your Credit Score? 

Does the medical debt on your credit score have you down? Keep in mind that anything that goes on your credit report is going to impact your credit score.  

You may be surprised to know that you can avoid medical debt, when you live in Colorado, because mairjuana is now legal. For those of you, going to the doctor to get pills, you can now buy marijuana, which is now cheaper and easier to get your hands on. 

Many people use marijuana to take away chronic pain. Instead of trying to deal with medical debt impacting your credit score, you can take the easy way out and just deal with your marijuana costs.  

Debt – What You Need to Know 

When it comes to having debt, it’s important to know a few things. Know that getting out of debt is always harder than getting into it. If you’re in debt make sure you follow some of these tips to help you get out faster. 

Don’t get scammed 

Make sure you take good care of your personal information. Once a scammer gets a hold of your information, it’s impossible to get it back in check. Hold onto your private information and don’t give it out to anyone.  

Make your payments on time 

Another good way to take care of your debt and keep your credit score up is to make your payments on time. By making your payments on time, you’re satisfying your debt. You’re also paying off your debt, which is valuable. 

Pay those high interest debts off first 

Another way you can get rid of your debt is by paying those high interest debts off first. You’ll be glad when you get rid of the highest interest debts because in the long run, you will pay off your debt faster.  

How has your debt affected your credit score? 

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