Horrible Credit - Can I still get private loans?

[tacc731]

I have HORRIBLE credit.  I'm talking sub-600.  I'm working on getting it better but this won't likely happen before the summer.  My question is: does anyone know FOR SURE what my chances are for private loans?  I understand that I'll probably have higher interest rate and that I will have to have a cosigner.  That's fine.  I just want to know that I can at least get them.  Any thoughts?

[InVinoVeritas]

as long as your cosignor has great credit, you should be able to get the private loans.

[jacy85]

Two points:  As Vino pointed out, you'll definitely need a cosigner with good credit.

Also, if you've ever defaulted on student loans, you will likely not be able to secure them, cosigner or not.  If student loans play no part in your bad credit, you might be ok.

There are some institutions that won't lend to anyone sub-500 though, so make sure you shop around before applying.  You don't want inquiries from lenders dragging down your score even more.

[tacc731]

Thanks for the info.  I'm only slightly sub-600, and I haven't defaulted on student loans.  I had a roommate that got us evicted and I refused to pay the fees cause it was his fault.  BIG MISTAKE.  I should have just payed the money and forgot about it.  My wife is slightly below 700.  You guys think she could cosign?

[jacy85]

I'm not sure who can't be a cosigner.  I know my dad can cosign for me if necessary, but I'm not sure if a spouse can.  I don't really see why not, I guess, but you'll want to check with lenders to see.

[Boston24]

Is there any disadvantage to having a cosignor?  Meaning, even if my credit is okay could I still have my dad cosign since his credit is obviously better to get the rates attached to his credit rather than mine? 

[jacy85]

I've never heard of that being an option if your credit is good.  It won't lower your interest rate any, since having a cosigner goes hand in hand with high interest rates.

And would you really want your father to sign on for potential responsiblity for this massive debt load if he didn't have to?

[giffy]

This all depends on were your borrowing form. First you will definitely get the 18.5k from the federal government. Those are not credit based. Second some schools have lenders they partner with. For example at SU they have what they call a Gate loan. Its up to 8k a year and the minimum score is in the mid 500’s. Beyond that you will need a cosigner and the better your cosigner the lower your rate. Some lenders will only take there credit into account, others look at both, and some only look a t yours. Some have different tiers for loans with cosigners vs loans with outs. Your best bet is to talk to your schools Finaid office.

[jr007]

nellie mae told me the cosignor had to have a mid-600 score and make at least $15,000 a year.  Not sure if that's the best lender though...

[CPSinvestigator]

you can also have a sponsor borrower. sallie mae,accessgroup, and key bank offer this option. this means someone (ANYONE) can borrow the loan for you. so, the loan is for your schooling, but it is another person's name. this maybe helpful if they deny you a cosigner.