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Author Topic: When do they check your credit for loan purposes?  (Read 3919 times)

ElizaB

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When do they check your credit for loan purposes?
« on: April 22, 2005, 09:49:52 AM »
I currently have a balance on my only credit card for the first time in the last couple of years.  Sadly, I accrued most of it paying for this LS admissions process - LSDAS, app fees, seat deposit, hotel rooms at visits, etc.!  I know that credit available to total credit affects your credit rating...but I don't know by how much. 

I have already been paying it down and can easily pay it off before I start law school in August, but I won't be able to pay it off immediately. 

So my question is when do they check your credit for private loans?  Will it be in the next month or so or do I have until July or August to pay this thing off?
Attending: Texas

jacy85

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Re: When do they check your credit for loan purposes?
« Reply #1 on: April 22, 2005, 09:53:55 AM »
They check when you apply.  So if you've applied now, you can expect them to check it soon.

See when your school suggests you should apply for loans, and you'll have a rough idea of when.  I think most schools tell you during the summer, but I'm not sure on that.

maka nani

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Re: When do they check your credit for loan purposes?
« Reply #2 on: April 22, 2005, 09:58:06 AM »
and it depends on the company but they don't always report every month...so if you pay it down now it might not reflect that on a credit report for a month or two.  I guess it just depends on the company and how much they report.  My credit card I opened and used in December did not show up on my February report but it did for March. 
DON'T GO TO LAW SCHOOL YOU DUMB FUCKS.

michaelduke

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Re: When do they check your credit for loan purposes?
« Reply #3 on: April 22, 2005, 10:07:27 AM »
If you apply online they do an instant check and often give you an instant decision.  I would suggest you applying now to make sure you can borrow the amount you will need. 

grad

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Re: When do they check your credit for loan purposes?
« Reply #4 on: April 22, 2005, 10:18:33 AM »
They check your credit when you apply.  You will then be approved or denied for whatever amount at an interest rate determined by your credit score.  However, that initial check is only good for 90 days.  After 90 days if they haven't dispursed your money yet, which they would no't have because school wouldn't have started (unless you start this summer), then they will run another credit report.  This is not really a good thing.  Every time your credit report is accessed it hurts your credit score.  It's dumb I know, but it's a fact.  You're better off waiting to apply for student loans from a private lender until the beginning of June to the mid of June.  This will make it so they only check your credit report once and you will have time to pay down your credit card.  This will also give you 3 months to know how much you'll be receiving.

ElizaB

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Re: When do they check your credit for loan purposes?
« Reply #5 on: April 22, 2005, 10:52:42 AM »
So I am guessing that you apply seperately for non-government loans?

I have never had to take out non "Stafford" educattion loans so I'm not really aware of the process.
Attending: Texas

InVinoVeritas

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Re: When do they check your credit for loan purposes?
« Reply #6 on: April 22, 2005, 11:10:23 AM »
for credit score purposes, it's not a bad thing to carry a credit card balance so long as payments are made on time and your account doesn't go to collection.  in fact, as ironic as it may sound, lots of lenders are more comfortable with borrowers who have a history of paying back debt a little at a time than people who've never carried any significant amount of debt.

grad

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Re: When do they check your credit for loan purposes?
« Reply #7 on: April 22, 2005, 12:18:06 PM »
Eliza, you do apply seperately for non-government loans.  You can borrow from the government up to 18,500 per academic year (8,500 subsidized & 10,000 unsubsidized).  This I'm sure you're familiar with.

For outside loans it's a little different.  You first need your total cost of attendance.  This number can be found by calling the financial aid office at your school.  From that total cost of attendance number you subtract the 18,500 and also any outside aid (i.e. scholarships, grants, etc).  The remaining amount is the total amount you are allowed to borrow for "non-government loans."  You apply for these on your own through many different sources.  Sallie Mae, Nellie Mae, Citibank are some of the large ones.  You may also borrow from a bank such as Suntrust, Wachovia (highly recommend since I work for them), Bank of America, etc.  The interest rates and fees on these will vary by the lender.  There was a thread discussing lender options somewhere, I'd run a search.

And In Vino is correct, carrying a balance on your credit card isn't necessarily a bad thing.  What you want to do though is make sure you are making payments on time as In Vino noted, but also make sure your balance on the credit card is less than 50% of the credit card limit.  If it is over this will hurt your credit.

Hope this helps, good luck.

SuperMoni

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Re: When do they check your credit for loan purposes?
« Reply #8 on: April 22, 2005, 12:50:13 PM »
soon2blaw: Why do you recommend borrowing from a Bank??  I'm pretty lost on the whole loan process.

grad

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Re: When do they check your credit for loan purposes?
« Reply #9 on: April 22, 2005, 12:57:21 PM »
Sorry, I wasn't recommending borrowing from a bank exactly, just sarcastiaclly suggesting borrowing from Wachovia specifically just because I work for them.  If you are lost in the process like you say, you probably should set up an appointment with the financial aid office at your soon to be law school either in person or over the phone to talk about the specifics for your situation.