Is a Student Loan Revolving Credit?

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By Chris Snellgrove

May 14, 2020

Student loans are not revolving credit; they are considered installment loans.

When you first start paying attention to your credit and credit score, it can be enough to make you dizzy. There are dozens of special terms, and each one impacts your credit one way or another.

One of those terms is “revolving credit.” Plenty of students don’t know exactly what revolving credit is. Furthermore, they end up wondering if their student loans count as revolving credit or not.

What Is Revolving Credit?

In order to understand the answer, we must first define what revolving credit is.

Revolving credit refers to a credit card or a line of credit. You have a credit limit and can borrow up to that amount in money, and the credit is available to you again as you pay the debt off. In this way, your credit “revolves.”

Is My Student Loan Revolving Credit?

Now that we know more about revolving credit, here’s the big question: is your student loan considered revolving credit? The answer is “no” for multiple reasons, including the fact that student loans are considered installment loans instead of revolving credit..

This money is not automatically available to you again as you pay it off. 

Can Student Loans Help My Credit?

With that being said, your student loans can affect your overall credit score. Taking out loans helps establish a credit history, and making timely payments can positively impact your credit.

Because payment history is so important, remember to never borrow more in student loans than you can reasonably pay back after graduation.


A good place to start:

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