Will your student loans prevent you from getting a credit card?

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Let’s face it; most students are more interested in enjoying a late night out and exciting road trips than their financial future. Unfortunately, once you graduate, you will be forced to face your financial fears that may include student debts, unstable income, and bad credit scores.

Additionally, student loan debt has become an integral part of almost every student in college due to rising tuition costs. It’s nearly impossible to go through school without taking out at least one federal student loan. 

However, many individuals don’t know how their student loans can affect their ability to get credit cards in the future. Luckily, your approval rate for a credit card, if you have debt, depends on how well you keep up with payments.

Getting your credit card approved

Credit card companies use your credit score to assess whether you are eligible for a card or not. An excellent credit score means you are a trustworthy borrower and can make your payments on time; thus, your approval chances are high.

On the other hand, if you have a bad credit score, credit card issuers may be opposed to approving your applications since you are a potential risk. When it comes to student loans, your credit score depends on your payment schedule and compliance.

For example, each time you pay your debt on time and in full, it’s reported to Experian, TransUnion, and Equifax, which are the three bureaus responsible for determining your score. Therefore, since you have a strong payment history, you can quickly get approved for credit cards.

Alternatively, if you are always late or miss your student loan repayment, it hurts your approval chances since you can’t be trusted.

Managing your student loans

If you are having trouble making your student loan repayments, you can get an income-driven repayment plan that recalculates your monthly dues based on your income. You can also defer your loans if you can’t afford to pay them back at the moment.

At StudentLoanify, we can assist you in finding viable student loan repayment options to ensure you avoid default. Contact us today for more information about student loans.