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Posts: 1
Registered: ‎04-17-2017
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Credit Requirements for My Situation

[ Edited ]

Hi. I'm trying to figure out what I need to do to qualify for a private student loan in addition to my incoming Federal student loan/grant(s). I am 19 years old. Before I go any further, I know that I have made major mistakes. The OTL's were honest mistakes made by my personal financial ignorance and they are quite embarrassing, but I feel it is critical to share for accurate advice. You can call me an idiot and you'd be correct, but I'm here for honest, logical advice. Here are my details. According to Wallethub and CreditKarma, my TransUnion score is 585. CK states my Equifax is 556. I have 44 inquiries on TU and 34 on Equifax. I have never once had a late payment on anything. I have a secured Discover card with a limit of $1000 (I paid that in full upon opening) and have had it since March 2017. The utilization is as follows: Discover 1074/1000 (It is over the limit, yes.), Victoria Secret (Late March 2017 opened) 333/350, Firestone (Credit First, Opened April 2017) 330/1000, Kohl's (Cap1, Opened May 2017) 104/300, Fingerhut (Opened March 2017) 0/600, American Eagle (SyncBank, Opened March 2017) 0/100 [Just paid it off. I want to close it, if wise... I'll keep it open. My initial limit was $300 and they lowered it to $100 after ONE returned check. It upset me, but that's what you get for not watching your checking account balance.] I have no other loans or derogatory marks. I have 3 closed accounts. All of the following were canceled by the grantors. Credit One Bank 0/300 (August 2016 - February 2017), Capital One 0/200 (June 2016 - August 2016), Marathon 602/300 (March 2017 - May 2017). On a side note, I was under the impression that these card companies had to give 45 days notice under the CARD Act of 2009 before closing the account. None of these companies gave any notice. Instead, they locked me out of my online access and I had to call them. Marathon locked me out of my online access 2 months after the reported closing! I thought all was well with the accounts because I had scheduled payments and had paid the minimum requested for June and July! It's very odd to me because I check my credit report frequently via WalletHub and Marathon didn't show up until early this month (July). I obviously later found out by checking my credit report that it was closed long ago. Back to the subject at hand, my income is about $12,000 per year, annually. (I know, it's pathetic. I'm working on it... no pun intended.) What's the best course of action to get a private student loan and simultaneously boost my credit score? The credit score simulator on CK isn't detailed enough for me. Thank you. 

 

Highlights:

 

63% overall utilization.

No late payments.

Average credit history is 3 months.

9 total accounts, 6 are open - 3 are closed by grantor.

Way too many inquiries.

Low income.

Seaking a private student loan.

 

Valued Contributor
Posts: 1,962
Registered: ‎08-02-2016
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Re: Credit Requirements for My Situation

Hi,

So as far as the credit card issues I would recommend asking about that in the Rebuilding Forum as they may have more insight into the requirements for account closure.

But as of now the damage has been done and your scores are tanked. On your own there's no possible way of getting any private student loans. The only possibility of you getting a private student loan is if you have a strong co-signer with good income, and 700+ FICO scores.

Other than that I would strongly recommend getting a federal student loan.
"Undergraduate students can borrow federal student loans regardless of their credit scores".

Meaning there's no credit check and you don't get a higher interest rate due to bad credit. My FICO scores were low 500's when I started college. I took out some federal student loans and they actually began boosting my scores because they were positive accounts on my credit reports.

Can I ask why you don't want a federal student loan?

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