Student loans and credit ratings

Ainat

Apologies if this should be in the student section.

Couple of quick questions.

Will having a student loan affect credit ratings?

And

I have a student credit card, it only has a limit of £350, but I've barely ever used it. At worst (a few years back) I used it a few times but never missed a minimum payment and always paid it back off when I could. Right now (and for quite some time now) it's actually £5 in credit. I'm not even sure how that happened. Haha.

I've heard people say that if you spend money on a credit card and pay it off it actually improves your ratings. Should I use my credit card even though I don't need to?

Other than the student loan/credit card I've never bought anything on finance or done anything that affects my rating (I think!).

nicp60

Hi there,

No, a student loan is not the same as a normal bank loan. It won't appear on your credit history and lenders won't know you have it (unless you disclose it).

The reason that using a credit card regularly can help you credit history is that it shows you can handle credit and debt responsibly. It's a good idea to use it for the odd shop and pay it off in full every month (to avoid interest and to show that you don't use it to live off and can love within your means).

Mobile contracts also appear on your report, so they can help with your history too.

nicp60

Oh, and please please ignore any 'scores' that credit reference agencies give you - they're a load of rubbish.
You can check your file for £2 for the statutory report without subscribing etc.