Law School Discussion

Nine Years of Discussion
;

Author Topic: Credit History Length  (Read 713 times)

team mvp

  • Sr. Citizen
  • ****
  • Posts: 270
  • Columbia '09
    • View Profile
Credit History Length
« on: February 02, 2006, 06:51:29 PM »
Am I not going to be able to get loans without a cosigner because my credit card history only goes back 1 and a half years?  I have a decent credit score, but the little amount of history slightly worries me.

shae

  • Sr. Citizen
  • ****
  • Posts: 1155
    • View Profile
    • LSN
Re: Credit History Length
« Reply #1 on: February 02, 2006, 08:30:28 PM »
I heard somewhere that you need 3 years of positive credit history- i dont know where I heard that though and I could be making it up.

cayberr

  • Guest
Re: Credit History Length
« Reply #2 on: February 02, 2006, 08:57:59 PM »
My younger sister had very little credit history (she just turned 18 and had about 2 months of credit card usage) and she was able to get private loans to cover a good chunk of her pricey ug ivy education w/o a cosigner.  Do you need much more than the $18.5k from federal loans?  You'll be less risky to lend to if you don't need to take on alot of debt.

team mvp

  • Sr. Citizen
  • ****
  • Posts: 270
  • Columbia '09
    • View Profile
Re: Credit History Length
« Reply #3 on: February 03, 2006, 04:38:39 PM »
I heard somewhere that you need 3 years of positive credit history- i dont know where I heard that though and I could be making it up.

Yeah, thats what I've heard too which worries me somewhat.

team mvp

  • Sr. Citizen
  • ****
  • Posts: 270
  • Columbia '09
    • View Profile
Re: Credit History Length
« Reply #4 on: February 03, 2006, 04:39:23 PM »
My younger sister had very little credit history (she just turned 18 and had about 2 months of credit card usage) and she was able to get private loans to cover a good chunk of her pricey ug ivy education w/o a cosigner.  Do you need much more than the $18.5k from federal loans?  You'll be less risky to lend to if you don't need to take on alot of debt.

18.5k is not going to do it for me.  CLS is expensive!

cayberr

  • Guest
Re: Credit History Length
« Reply #5 on: February 03, 2006, 06:18:12 PM »
My younger sister had very little credit history (she just turned 18 and had about 2 months of credit card usage) and she was able to get private loans to cover a good chunk of her pricey ug ivy education w/o a cosigner.  Do you need much more than the $18.5k from federal loans?  You'll be less risky to lend to if you don't need to take on alot of debt.

18.5k is not going to do it for me.  CLS is expensive!

Agreed.  I was hoping you had fat scholarships to help you out a little more.  You'll have 2 years of credit history by the time you need to apply for loans.  Although that still isn't a great length of time, lenders can't expect young people seeking educational loans to have 15 years of credit history.  Do the best with what you have now.  Pay your credit card, cell phone, utility, etc. bills on time.  Don't cancel any credit cards, especially the one you've had the longest.

cayberr

  • Guest
Re: Credit History Length
« Reply #6 on: February 03, 2006, 07:06:24 PM »
My younger sister had very little credit history (she just turned 18 and had about 2 months of credit card usage) and she was able to get private loans to cover a good chunk of her pricey ug ivy education w/o a cosigner.  Do you need much more than the $18.5k from federal loans?  You'll be less risky to lend to if you don't need to take on alot of debt.

18.5k is not going to do it for me.  CLS is expensive!

Agreed.  I was hoping you had fat scholarships to help you out a little more.  You'll have 2 years of credit history by the time you need to apply for loans.  Although that still isn't a great length of time, lenders can't expect young people seeking educational loans to have 15 years of credit history.  Do the best with what you have now.  Pay your credit card, cell phone, utility, etc. bills on time.  Don't cancel any credit cards, especially the one you've had the longest.

actually, i learned from one of my coworker's boyfriends WAAAAAY back in the days that having too many credit cards hurt your credit also even if you owe nothing on them...the reason is that if you earn 20k a year but somehow have a bunch of credit cards that add up to a total credit line of, i'll just say a million to be extreme to demonstrate the point then, although u missed a payment, you have the ability to rack up A LOT of debt in a short period of time and will have no way to pay it off...is it worse then missing payments?  no...but it does worsen your credit a bit

Snobord, I totally agree with you.  Having too many credit cards is very risky b/c you have the potential to rack up alot of debt.  I was saying not to cancel any accounts b/c it seems like ptp wouldn't have many open accounts considering there's only 1.5 years of credit history (unless someone went wild and opened 10 accounts in 1 month or some other extreme).  If you don't have established credit yet, you shouldn't cancel your very first student card because that's the beginning of your credit history.  You also shouldn't close many cards at once because that increases your debt/credit ratio, and thus lowers your score.