The importance of good credit
Building and maintaining good credit is a lifelong financial skill. It can make a big difference when you apply for a car loan, credit card, lease, mortgage, or even when you apply for a job.
Student loans and credit
If you didn’t have a strong or established credit history when you applied for your private student loan, you probably added a cosigner. Their credit history was evaluated to secure the loan.
Student loans are one way you can build your credit history. If you consistently make on-time payments, student loans can have a positive impact on your credit score. On the other hand, if you miss payments and fall behind, your actions can indicate that you’re a higher risk to a company considering giving you a loan or credit card. It can also lead to you getting a higher interest rate than someone with better credit.