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Anonymous

04 Jun 2022

∙

Does student loan affect credit score and credit card application?

Hello, i took up a student loan a year ago for my further studies and have been religiously paying on time every month. Applied for my first credit card last month and got rejected. Checked my credit score and it was EE.

Was my credit score affected because i took up a student loan thus led to the rejection? Or is there some other explanation? any answers would be great thanks!

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Joshua Lim

06 Jun 2022

Any loan will affect credit score.

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Not a financial advisor

06 Jun 2022

Yes, it does, taking a loan under your name will affect the credit score, but if you pay off the loan timely, the score will recover quite fast~

However, you mentioned that you are applying first credit card, i think likely is you do not have enough credit history to support the score, so its common to have low credit rating at the start.

I guess you are taking the loan either with your parents's name or max possible loan using your salary record (While having a bad credit rating due the lack of credit history)

Also, how long ago did you apply the student loan? If you applied student loan not long ago and try to get a credit card now, they will drop your credit rating too (even if you failed to get one)

last, min requirement is $30k annual earning, otherwise you can try to get those $500 student credit card haha

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Vernice Ng

06 Jun 2022

Community Manager at Seedly

Hello! I applied for a student loan as well, and am still paying them off. My credit score is not af...

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