Hey everybody, I'm Kyle Rizadol. Welcome back to Make Me Smart where we make today make

sense, especially today because it's what he wanted to Wednesday. We're going to answer

you know some questions as many as we've got time for in 15 minutes and then we'll

you know let you guys get on about your day.

Ideally and I'm super interested in some of these in particular today but before we get

to them if you have a question about the economy business or technology you can email those

questions to make me smart at marketplace.org or leave a voicemail at 508 UB smart.

Or you just email us and we'll read them like we're going to do this one which is I believe

for you. Miss Adams, Todd Schultz in New York's rights this. How will the upcoming student

loan forgiveness wave impact credit scores? Will the algorithms adapt and keep scores the

same or will the scoring industry bump everybody up? That's a really good question actually.

Oh Todd. Oh Todd. It's all me. I mean logically you would think that you know knocking off

all the student debt would sure raise your credit score because you'd have less debt.

However it kind of depends the way this algorithm these algorithms work because most people

have multiple credit scores is that it looks at a variety of factors including the mix

of the kinds of credit you have as well as your debt to income ratio. So knocking off

10 grand of your student loan debt may help you on that debt to income ratio but it won't

necessarily help you out as much on your mix of types of credit. So if all you have is

say 8 grand left in your student loan debt which means you're lucky probably and it goes

away then instead of having a car note mortgage and a credit card and a student loan you

now just have those first three. So you have less variety of credit. So that can ding your

credit score a little bit temporarily shouldn't last very long. One of the big credit reporting

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