 TITLE: What Is Income-Based Repayment? CONTENT: How Does Income-Based Repayment Affect Credit Scores?\n-----------------------------------------------------\nGetting on an IBR plan won't directly impact your credit score because you aren't changing your total loan balance or opening a new credit account. However, lenders consider more than just your credit score when you apply for credit. Here are a couple of potential consequences to watch out for:\n*   **Debt-to-income ratio**: Lowering your monthly payment can help reduce your monthly debt obligations, which could make it easier to qualify to borrow more if you're buying a house.\n*   **Debt term**: If you're applying for new credit, lenders will consider how much you owe on existing debts. With an IBR plan, you'll have a balance for up to 25 years instead of 10, which means it could affect your chances of getting new credit for much longer.\nTo make sure you're using your student loan debt to improve your credit, pay your bills on time every month, preferably with automatic payments. Also, once you're financially able to pay more, consider adding extra payments, even if you don't need to. Not only will this help you save money on interest, but it'll also get you to debt-free status more quickly. END