Credit Score

[JGB]

Student loans do have a factor on your credit score, and that is just for the fact that you will have a 100% balance. Also, when you look to get a mortgage in the future, you will probably see the following on the report:

Payment Deferred

You will either have to provide a letter stating how long the payment will be deferred for (must be at least 3 years), or qualify based up on the estimated monthly payment.

[JFK]

Thanks for your response.  I guess wrote that incorrectly.  What I meant was, would the school factor in my credit score PRIOR to awarding my federal loans?  Would a bad credit score negatively affect my ability to get stafford loans?  Or does credit score only factor in when applying for Private loans?

Student loans do have a factor on your credit score, and that is just for the fact that you will have a 100% balance. Also, when you look to get a mortgage in the future, you will probably see the following on the report:

Payment Deferred

You will either have to provide a letter stating how long the payment will be deferred for (must be at least 3 years), or qualify based up on the estimated monthly payment.

[St. Shaun]

Thanks for your response.  I guess wrote that incorrectly.  What I meant was, would the school factor in my credit score PRIOR to awarding my federal loans?  Would a bad credit score negatively affect my ability to get stafford loans?  Or does credit score only factor in when applying for Private loans?

I don't think the schools pull your credit, so they probably don't even know your credit score.

[risingMC]

if you wanted to save money: if you know the lender you'd like to go with, sometimes they specify which company they're going to get your score from, depending on your region. For example, northstar told me that they're very likely to use experion; only if they can't get enough information there will they go to one of the other two.

[michaelduke]

credit history has no bearing on Stafford loan (unless you have defaluted on a previous federal loan). 

Thanks for your response.  I guess wrote that incorrectly.  What I meant was, would the school factor in my credit score PRIOR to awarding my federal loans?  Would a bad credit score negatively affect my ability to get stafford loans?  Or does credit score only factor in when applying for Private loans?

Student loans do have a factor on your credit score, and that is just for the fact that you will have a 100% balance. Also, when you look to get a mortgage in the future, you will probably see the following on the report:

Payment Deferred

You will either have to provide a letter stating how long the payment will be deferred for (must be at least 3 years), or qualify based up on the estimated monthly payment.

[JFK]

Great.  thank you.  this will be my first loan so i am ok in that department.  thanks for the clarification

credit history has no bearing on Stafford loan (unless you have defaluted on a previous federal loan). 

[St. Shaun]

Northstar told me that in Michigan they use transunion.  Of course it
varies by region.  In Minnesota they use experian

[midjeep]

I am in the process of applying for loans but I am still waiting on SMU to send me info on costs and whatnot, but I figure I should check into my credit before then. I used Experian a few months ago and I had over 20 credit cards open (the things I did for a free shirt.... ). Anyways, I canceled most of them, but there are 3 cards that I can't cancel because the full name of the credit card isnt provided, the full account number isnt provided, and I dont know what address I was at when the card was opened and used.

How/who do I contact to close these stupid cards. Each only have a balance of 500 bucks or so, but my credit was tarnished for a lesser charge.

I had a credit card that I cut up when I paid it off but never contacted the credit card company to cancel. One of those agencies that you pay 200 bucks a year to get a booklet of special deals charged my card without authorization. 2 years later I get a deliquency notice from a creditor agency saying I owe 500 bucks for this "purchase." Long story short, I called the company that charged my account and they said they would credit the amount back to the card (it felt like a scandel given how quick they responded). The card was closed and the account was listed as stolen instead of deliquent, but I haven't seen the official credit report to see if that is the case.

I still have 5 cards out there and I will be debt free before July. Hopefully I am not totally screwed, but I am getting a bit worried.

[Are we there yet?]

Just be mindful that closing credit card accounts will likely lower your score, since people normally close accounts with zero balances and this can cause the percentage of revolving debt used to climb, which will never improve your score (although this doesn't necessarily mean it will lower the score, either). Also, if these are accounts that you have had for an extended period of time, then closing them may lower your average open account time, which can also lower your score. I'm all for cutting the cards up if you're afraid you might otherwise use them, but closing the accounts is usually not a good idea if your intention is to raise your score. 

[midjeep]

Just be mindful that closing credit card accounts will likely lower your score, since people normally close accounts with zero balances and this can cause the percentage of revolving debt used to climb, which will never improve your score (although this doesn't necessarily mean it will lower the score, either). Also, if these are accounts that you have had for an extended period of time, then closing them may lower your average open account time, which can also lower your score. I'm all for cutting the cards up if you're afraid you might otherwise use them, but closing the accounts is usually not a good idea if your intention is to raise your score. 

Well it looks like I can't cancel these cards because I dont know who to call. One of the cards is a "Structure" card that is still listed as open. I opened that card in 1998 and since "Structure" no longer exists, it is going to be hard for me to close or use if I wanted to (I do know that it is owned by Limited Inc so I can probably do some more research and find someone to call, but I am not that bored yet...the fun things I can do at work with Lexis Nexis )