Someone help,

[BearsAndTurtlesRtheBest]

I went to a private college to get enrolled, and the rep told us that if they ran my moms credit and saw that it was bad shape that it would help her to get money from the government, didnt really ask if it was gonna be a SP or HP since she does currently owe alot in credit cards and we thought its gonna be denied which is a plus in this case since it means more money towards my education, well she came back saying that it was accepted AKA her credit is in good standing so no extra money from government. So today we check e-mail and saw an alert from EQ, logged in and there it was an inquiry. Which is fine but my confusion is that her eq report is locked yet they were able to pull her credit. Why is that??

[BearsAndTurtlesRtheBest]

What gets us upset is that here these people are telling us that my moms credit is in good standing yet she goes to a bank and applies for a debt consolidation loan to get denied because credit is not so great.

[BearsAndTurtlesRtheBest]

Also when I asked her as to which CB they pull she just said "oh I'm not sure it depends on the system" (hate those answers hahha)

[chnceit]

Try to go to a credit union that she has a relationship with. CUs tend to be easier and yes I hate when companies dont give me a straight answer

[takeshi74]

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@BearsAndTurtlesRtheBest wrote:

What gets us upset is that here these people are telling us that my moms credit is in good standing yet she goes to a bank and applies for a debt consolidation loan to get denied because credit is not so great.

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Criteria vary.  You can't just assume that everyone uses the same criteria when reviewing credit.  The college is obviously going to have a much lower bar for granting financial aid than a bank offering a loan.  As always, high utilization will negatively impact credit.

[JonStur]

When she gets denied her criteria for that specific loan consol company wasn't good enough. I'm sure with a little research she will find someone that she qualifies for, they will probably have about the same standards as the college.  As far as EQ, she might want to make sure it's actually locked..

[BearsAndTurtlesRtheBest]

@chnceit she did go to CU about 2 yrs ago and got turned down, that was two years ago so who knows now. I will let her know and maybe re-try with a different CU  thanks!

[BearsAndTurtlesRtheBest]

Never thought about how everyone does use a different criteria. Thanks @takeshi74 makes much more sense! And yeah High UTL does impact credit and at time of  decision but then isnt that why they are called Debt Consolidation Loans? Am I missing somehting? 

[BearsAndTurtlesRtheBest]

Might just have to do some research because she applied at Wells Fargo, OneMain Financial, and even a CU. 

[UserID732555]

For your mom - it sounds like she needs a Debt Management Plan. 

Consumers with high interest credit cards can contact a non-profit Credit Counseling Agency and enroll in a Debt Management Plan (DMP). A DMP is a program in which a credit counseling agency takes outstanding credit card bills, lowers your interest rates to single digits (or 0%) and consolidates them into a monthly payment issued to the credit counseling agency. The credit counseling agency then disperses these decreased monthly payments to your creditors. Clients receive information on their program through monthly statements, 24-hour online account access, and continued receipt of credit card billing statements.  In this way, a check- and-balance model is provided for the consumer. Some benefits of the program include dramatically reduced interest rates, past due accounts brought current, waived over-limit fees, waived late fees, and in some cases, reduced balances owed to ensure debt liquidation in the shortest possible time frame.