Where can I track my student loan status?
Isam emailed: Is there a place online where I can track my student loan status?
If you’re not sure who your student loan servicer is, the best place to check is by visiting the National Student Loan Data System (NSLDS), which is the central hub for federal student loan records. (If you have private loans, check your loan statement and contact the customer service number for help). All you need to check your loan status is your Social Security number, date of birth, the first two letters of your last name and the same 4-digit PIN you used to fill out your FAFSA form. (Forgot your pin? Get a new one at the Federal Student Aid PIN website.)
If you’re not sure who your student loan servicer is, the best place to check is by visiting the National Student Loan Data System (NSLDS), which is the central hub for federal student loan records. (If you have private loans, check your loan statement and contact the customer service number for help). All you need to check your loan status is your Social Security number, date of birth, the first two letters of your last name and the same 4-digit PIN you used to fill out your FAFSA form. (Forgot your pin? Get a new one at the Federal Student Aid PIN website.)
What happens if I only pay off part of my credit card balance each month?
Tony emailed: If I have a credit card that is under a promotional
rate of 0% interest and I am not paying off the balance in full, but I
am making a payment above the minimum payment, does this affect my
credit score negatively?
If your credit card balances are increasing each month, then yes, your score might suffer. Making partial payments – even above the minimum – while continuing to run up your balances, will raise your credit utilization ratio. (The credit utilization ratio, or debt-to-limit ratio, compares the amount of credit being used to the total credit available.) The lower the ratio, the better for your score. It’s recommended you keep your utilization ratio below 30%.
If your credit card balances are increasing each month, then yes, your score might suffer. Making partial payments – even above the minimum – while continuing to run up your balances, will raise your credit utilization ratio. (The credit utilization ratio, or debt-to-limit ratio, compares the amount of credit being used to the total credit available.) The lower the ratio, the better for your score. It’s recommended you keep your utilization ratio below 30%.
Should I take out a small loan to help build up my credit?
Neil emailed: I am trying to re-build my credit. I have a bankruptcy on my history that is about 5 years old. I have been living without any credit since and pay as I go for everything. Is it a good idea to apply for a small personal loan ($5,000 max) in order to increase my credit score? What are other ways to accomplish this?
Bankruptcies stay on credit reports for 10 years from the filing date, so you’ve got another five years left. Getting positive information on your report will serve you well as the bankruptcy continues to age. A few options on this front: a small personal loan, a credit builder loan from a credit union, or a secured credit card, says John Ulzheimer, credit expert at CreditSesame.com. He suggests making sure the creditors with whom you apply actually report the accounts to all three credit bureaus, or you won’t get any credit building benefit from the account. Getting a personal loan is a decent idea, but bear in mind it means you’ll be taking on more debt to rebuild your credit, and that’s not always the best use of your money, Ulzheimer cautions. Opening a credit card of some kind lets you open an account that should register on your credit report – and you don’t have to take on more debt to do it.
David emailed: Does the Lifetime Learning Credit or the American Opportunity Credit apply to dependents, or only the wage earner?
The IRS says both the Lifetime Learning Credit and the American Opportunity Credit do apply to the taxpayer as well as his/her dependent – as long as they pay education expenses for the student enrolled at an eligible institution, and the dependent is listed on their tax return. One note: You cannot claim both the American Opportunity Credit and the Lifetime Learning Credit for the same student in the same year, but you can claim the American Opportunity Credit for one student and the Lifetime Learning Credit for another student in the same year.
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