Getting loans for med school

Icarus
Tue, 14 Jul 2009 03:15:49 +0000

If it was paid in full and on time, wouldn’t that be good for your credit?



Yes, that was my point. It would help establish your credit history.



Yeah, but raising the limit is not.



Actually, rasing your limit is a good thing, at least for your FICO scores (which don’t mean anything for getting federal loans). This is because a decent portion of your FICO score is based on your utilization % (the balance you cary vs. your overal limit) - higher limit with little to no month-to-month utilization equals higher FICO score.

And paying in full doesn’t look any different on your credit report than making the minimum payment (which just states whether an account is current and in good standing or not). Obviously, however, it does lower your utilization more, which leads to a higher FICO, so thats good.