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Member
Posts: 14
Registered: ‎03-11-2012
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Personal Loan through NFCU

I figure this would be the best section to post this question.

I am looking to obtain a personal loan for about $5,000 with fico credit scores of 700 and 707.

I am still a grad student and have an income of $2,000 per month. Is $5,000 realistic for a personal loan? If yes or no, how much lower or less should I aim?  (more wouldn't hurt at this point)..

 

thanks!

 

 

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Personal Loan through NFCU

With NFCU it's possible. Depends also on your DTI.

Member
Posts: 14
Registered: ‎03-11-2012
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Re: Personal Loan through NFCU

$0 home, auto, and personal debt. About $50k in student debt which is deferred until May 2013. Income is about $25k per year. 

When do student debts come into play?

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Personal Loan through NFCU

YMMV on the lender. If I were the lender I would consider them now because the personal loan payments are being made along side the SLs. Is the min. payment showing in the TL while in deferral?

Member
Posts: 14
Registered: ‎03-11-2012
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Re: Personal Loan through NFCU

Thank you for your reply. 

I don't know what the TL means but there is no minimum payment for my student loans while in grad school (at least I don't think). I always check myfico credit score and it says all my standing past loans are 'okay'.

Mega Contributor
Posts: 19,439
Registered: ‎03-19-2007
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Re: Personal Loan through NFCU

[ Edited ]

As with any credit app, the lendor determines the qualification criteria. 

FICO does not evaluate overall ability to pay, as it does not take into account the obvious and pertinent factors such as income, assets, and debt to income.

FICO tells the prospective creditor, regardless of income and assets, the risk of your timely repayment.  You may, for example, have substantial income, but just dont pay on time.

 

For relatively low principal credit, the creditor may choose to rely only on risk of repayment analysis, as a pull of FICO score is quick and cheap.

However, as their risk increases, such as due to higher principal on an installment loan, or higher CL on a revolving account, they will most likely do a manual review of the consumer's credit report, along with inquiry about other non-FICO factors.  Mortgage loans rarely rely only on a FICO score, while many starter cards may base their decision only on FICO score, thus permitting consumers to use AU status to gain qualification without the creditor's concern that your score is not based only on your own credit history.

 

Two consumers with identical FICO scores, both apping for a loan of, for example, $10K, will be viewed differently depending upon the type of review and criteria used by the lendor. 

 

Does NFCU do more extensive reviews for personal loans at that level?  I dunno.....

If they do, and the requested loan principal is 40% of monthly income, I would suspect greater scrutiny, with possibly a request for some security on the loan.

 

 

Moderator Emeritus
Posts: 32,869
Registered: ‎08-04-2007
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Re: Personal Loan through NFCU


Tufts wrote:

Thank you for your reply. 

I don't know what the TL means but there is no minimum payment for my student loans while in grad school (at least I don't think). I always check myfico credit score and it says all my standing past loans are 'okay'.


TL = tradeline (namely the SLs). Look at the SLs within your credit report. What you want to look for is a field that says "Minimum Payment" or something like that. If it's at $0, then lender's don't know that you'll have a minimum payment down the road. They may ask you to disclose that on your app, but that's a manual review. If there's a payment showing, then they might factor it into your DTI which may or may not be an issue.

Member
Posts: 14
Registered: ‎03-11-2012
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Re: Personal Loan through NFCU

Thank you for your replies.

What % of my monthly or annual salary should I request for a personal loan? 

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