I have high debt, but 75% is student loans. Do lenders view that debt as negatively as

Yes and no. "Student loan debt is given a more favorable look when calculating credit scores but is equal in terms of debt-to-income ratios," says Bob Walters, chief credit officer of Quicken Loans.

The FICO score, the credit score many lenders use, divides loans into two categories: installment loans and revolving loans. Student loans, mortgages and car loans -- where you pay a fixed amount every month -- are installment loans. Credit cards -- where you control your monthly payment -- are revolving loans.

Owing a lot of money in student loans -- or any installment loans -- isn't going to hurt you as much as maxing out your credit cards, says Craig Watts, consumer affairs manager for Fair Isaac, which created the FICO score.

But you still can hurt your credit score if you miss payments on your student loans. On the other hand, you can improve your score by making payments on time. If you do have a good student-loan payment record, Watts recommends checking your credit report to make sure the student loan information is being reported. "For a lot of recent graduates, their student loan and one credit card will be their whole credit history," says Watts. For more information about improving your credit score, see MyFico.com.

In addition to your credit score, however, lenders also look at your ability to repay a loan. "This is based strictly on your monthly income and the number of monthly payments you are obligated to repay," says Walters. For example, you might find it difficult to qualify for a mortgage if your new monthly mortgage payment and all of your other monthly payments together represent more than 50% of your gross monthly income, Walters says.

High Recommended Books

1.

Free Yourself from Student Loan Debt: Get Out from Under Once and for All ivelynegat anLo sa orf t-cardcredi ouY bt?de ingPay esY ti nda ffO o.n ctingProte dent"Stu urYo anlo ncialFina btde ureFut si yb vengi neAn a S remo rablefavo by Brian OConnell (Paperback - May 1, 2004) 8 Used & new from $5.00 Excerpt - page 1: "... Center for Economic and Policy Research, student loan debt is 85 percent higher for students in 2003 ..."

2.

Take Control of Your Student Loan Debt by Robin Leonard and Deanne Loonin (Paperback - Aug 2001) 16 Used & new from $4.88 veha e ghhi ot btde eringMast utb dentStu 5%7 anLo si bt:De dentstu thingEvery ns.loa ouY oD uldSho derslen owKn ewvi outAb atth iatingNegot btde het sa ghtRi Excerpt - page 2: "... 1 / 2 TAKE CONTROL OF YOUR STUDENT LOAN DEBT f you owe the government, your school or a private ..."

3.

Bankrupt Your Student Loans: and Other Discharge Strategies by Chuck Stewart Ph.D. (Paperback - May 17, 2006) Buy new: $34.95    30 Used & new from $24.01 Eligible for dentstu thingEvery ns.loa ouY oD uldSho derslen owKn ewvi outAb atth iatingNegot btde het sa ghtRi ivelynegat anLo sa orf t-cardcredi ouY bt?de ingPay esY ti nda ffO o.n ctingProte dent"Stu urYo anlo ncialFina btde ureFut si yb vengi neAn a S remo rablefavo FREE Super Saver Shipping. Excerpt - page 2: "... Now you are saddled with student loan debts for an education that did not benefit you. How aggravating! ..."

4.	The Guerrilla Guide to Mastering Student Loan Debt: Everything You Should Know About Negotiating the Right Loan for You, Paying it Off, Protecting Your Financial Future by Anne Stockwell (Hardcover - Aug 5, 1997) 16 Used & new from $2.15