I have a bad credit score b/c of school loans not credit cards. I make all payments on time, but high debt?

Jen asked:


I’m also a nurse and have been paying rent ($900/mo) on time in same apartment for 2.5 yrs and saved all money order receipts. Will this make a difference in getting approved for home loan (1st time buyer)?

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10 Responses to 'I have a bad credit score b/c of school loans not credit cards. I make all payments on time, but high debt?'

1. mar c - December 27th, 2011 at 11:43 pm

   not at all…you need more time to save,get another job…

2. Larry - December 28th, 2011 at 6:38 am

   doesn’t hurt. hat’s your income to debt ratio? that’s a big factor

3. Mark - December 28th, 2011 at 6:59 am

   High debt does not give you a bad credit score, your payback history does. You should probably order a copy of your report and see what’s on there causing the score…

4. Fraggle Rock & Roll - December 28th, 2011 at 1:05 pm

   School loans will hurt you if you don’t pay them, a good rental record will give you a good reference and that’s about it. A close friend I know makes $30/hour and can’t even get a car loan,(because of high debt school loans) so a home loan is going to be like pulling teeth. It certainly is hard to get on one’s feet nowadays due to all the people who couldn’t afford their lap of luxury and went under, banks are tightening their belts.

5. jle4044 - December 29th, 2011 at 8:36 am

   The approval process is about more than just your credit report, it’s your whole financial picture. Your score might be lower due to high balances (30% of your score) but late payments are where you’d really get nailed.

   Have you tried for a pre-approval on a FHA home loan? That’s FAR, FAR easier for a first time home buyer than a convential loan. The minimum score needed to qualify for FHA is 620 or 640, can’t exactly remember which one. Your debt to income ratio will play a big part in how much you’d be approved for, but if you have at least a 640 FICO score, you’re qualified (most likely)!

6. live_journal_15057 - December 29th, 2011 at 10:12 am

   I hear ya sweet pea! I got EXPELLED from my university for threatening a student, and now I got to pay back all this money…close to 10,000 dollars! And believe me, I am SO SORRY for what I did….it wasn’t even the guy’s fault why I was mad; I was angry at my dad and then I just went to school in a very unstable **** poor mood and went on FACEBOOK and threatened a college class mate. Man…..do I ever regret it! I hope I can get back into the school once I proof I can handle my self for a year or two at a local community college. Do they ask why a student transfers from one school to another? Do they know about students who get expelled or suspended? I’m very nervous..
   I know this doesn’t answer your question but I want you to know that your situation is A LOT better than mine. I couldn’t graduate and I’m stuck without a diploma in Computer Science.

7. sassy2 - December 31st, 2011 at 8:31 pm

   No lender will give you a mortgage with that much debt unless you have at least 20% down. Paying your rent on time does not increase your chances.

8. Joy - January 1st, 2012 at 9:49 pm

   I am Joy Anderson i was in need of a loan of $100 000 USD and was scammed by those fraudulent lenders and a friend introduce me to Mr John clarke,and he lend me the loan without any stress,you can contact him at

9. Sunano - January 2nd, 2012 at 4:34 pm

   I live in London England i was actually looking for a loan to set up a business and decided to give Yahoo Answers a trial and was scammed twice by some dubious scammer’s and i saw a testimony concerning HENRY SMITH LOANS FIRM COMPANY and gave it a try and i got my loan, if you are looking for a trustworthy,standard,legitimate,reputable loan firm its the afore mentioned you can reach the company through its e-mail please extend my regards when u get to do business with him.

10. Mai - January 4th, 2012 at 5:10 am

    n this economy, people with good credit can barely get a loan. People with bad credit are SOL. It’s people with bad credit which banks gave out loans that they knew might not get paid back, which got us into this mess.
    Wait till the credit market thaws, then try.

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