<p>Someone once told me that debt that a person accumulates because of going to undergrad and grad school is called "good debt?" Is that true? What this person meant by that phrase is that creditors would not hold it against you if you have "good debt." If you want to take out a loan for a house, your "good debt" would not be a factor in you not recieving that loan. Is all of this true?</p>
<p>I'm not really sure why this is in the employment forum, but...</p>
<p>Yes, student loans are considered "good debt;" however, that doesn't mean that the amounts are ignored on your credit report. Having too much debt or paying late is bad no matter what your mix of debt is.</p>
<p>What lenders like to see is someone with a long credit history without any late payments. They also like to see someone who takes advantage of their good credit and borrows smart. That's where the idea of "good debt" comes in. Student loans and home mortgages are considered healthy forms of debt--investing in a home or college is usually a good investment and lead to better ability to pay at a later date. They also result in regular, steady payments, which demonstrate ability and willingness to pay, unlike credit cards, which can involve erratic payments depending on your spending patterns. As you get older, not having these items may actually count against your credit score.</p>
<p>On the same token, there are also "bad" forms of debt. The most notorious is store charge cards. It is good to have at least two major credit cards for everyday purposes; however, charge cards are usually limited to impulse buys and creditors don't like to see them.</p>