I’m currently dealing with student loans and also just got my first credit card to start building credit.
I’m trying to figure out how much it actually helps in this situation. Like if I use the card responsibly (low balance, paying on time), does that make a noticeable difference even while I still have loans? Or do the loans kind of cancel that progress out? Also not sure how to balance the two should I be focusing more on paying down the loans aggressively, or just making sure everything is on time and letting the credit history build?
Does using a starter credit card actually help while you have student loans?
byu/United_Bar1426 inStudentLoans
Posted by United_Bar1426
2 Comments
Right now doesn’t really matter because you don’t have much of an income. But in 5 years when you have a good income the loans will be a small percentage of that and you’ll have a credit card that’s 5 years old, so it’ll help then.
Are you paying the statement balance or the minimum balance? It should be the statement balance. Make sure you’re not paying interest.
Either way, credit score doesn’t matter unless need to use it. Do you need to use it in the near future?