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Does anyone know how to reduce the effect of student loans on the fico score? I am told by mortgage lenders that lots of student loans do not adversely affect the credit, however, when I pull my credit, I have fairly good scores but one negative rating provided at myfico.com for my scores is "balances too high on installment accounts." I only have student loans and do not have any other installment accounts that are not paid off so these student loan balances are clearly affecting my credit score, which will affect my mortgage interest rate even if my debt to income ratio is fine.
Does anyone know what might be done? There are about three different loans from the same lender b/c each year I got a loan, they listed it separately on the credit report. Would it help if I asked the lender to put all three loans together? The balance would still be just as high obviously.
I'm annoyed b/c a sister can't even take loans to get an education! I have lots of student loans and due to the low interest rate, it doesn't make sense for me to pile a ton of money into paying them off over the next ten years or so when I could invest the money or pay off my credit card bill, use the extra money to purchase a home, etc.
Anyone got any tips?
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