Line of Credit/Future Credit Rating

[2002tii]

When weighing your options for lines of credit you may wish to ask how your line of credit will be reflected on your credit report after you graduate.

 

My husband and I both have professional student lines of credit from different banks. His bank locked in his credit limit so he couldn't borrow any more but continued to show the full amount he borrowed. His statement shows what he borrowed and when but also how much he has paid off. My bank locked my line of credit but also lowers my "borrowing limit" with each monthly payment I make. My statement makes it seem like I haven't paid off a cent in 7 years and shows that I am at my max borrowing limit. This negatively effects my credit rating by a fairly large amount (in my opinion).

 

That might be a big deal now but it can be later on. At the very least it's a question you should ask whatever bank you get your loan through.

 

J

 

PS Sorry if I used the wrong lingo but I have no banking or business background.