Law School Students and Credit Scores – Episode #67

How are credit scores impacted by law school debt? What can someone expect in a credit score after graduating from law school?

There’s no proof that people who graduate from law school have higher or lower credit scores than the national average. While a law degree means lots of debt in most cases, students may have high paying starting salaries. This post is intended to help law students make sure they send their credit in the right direction.

The best time to start managing your credit score is before you start law school and before you start shopping for student loans.

Graduates in 2006 of public and private law schools had borrowed an average of $54,509 and $83,181, up 17% and 18.6%, respectively, from the amount borrowed by 2002 graduates, according to the American Bar Association. Net net, law schools usually mean lots of debt.

Law school loans will appear as installment loans on your credit file. You have two types of accounts on your credit file. Revolving accounts are credit cards and installment accounts which include home loans, car loans, personal loans and all types of student loans. Paying them off on time, or ahead of time will benefit your credit score the most.

Which should you pay off first? With more and more students graduating with credit card debt, this is an important question. Answer: Credit card debt trumps law school loan debt. If you have extra funds, pay off your credit cards first, then your other loans, then your law school and undergrad loans last.

With more of law students starting with work experience, building credit has already started for these folks.
Still for others, who have gone to school straight through or for they may need to get a bank account and consider a secured credit card to get started.

Similar Posts:

• Law School Students and Credit Scores – Episode #67
• MBA Students and Credit Scores – Episode #68
• Student Loan Debt vs. Credit Card Debt. Which Impacts Credit Scores More? – Episode #64
• Financial Aid and Credit Scores – Episode #66
• When Should You Get Your First Credit Card? – Episode #22
• Credit Score Impact On Student Loan Applications – Episode #65