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Frequent Contributor
Posts: 462
Registered: ‎08-08-2013
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Loan Denied Sallie Mae 43k

The loan i needed for school was denied. My credit score is 732 and I was informed that the reason for denial was my short length of credit history. My oldest CC is almost 4 years old but my AAoA is closer to 1yr. Does anybody know what length of credit history is good enough for Sallie Mae? A co-signer is not an option for me so i need to strategize as to when i should re-apply.

AMEX PRG NPSL, FIDELITY AMEX 30K, CITI DIAMOND PREFERRED 22K, AMEX DELTA SKYMIES GOLD 18K, CHASE SAPPHIRE PREFERRED 15K, CITI DOUBLE CASH 11.9K, BARCLAYCARD REWARDS MASTERCARD 10K, CHASE MARRIOTT PREMIER 5K, CAPITAL ONE SONY CARD 5K, CAPITAL ONE QUICKSILVER 3.5K, AMAZON STORECARD 6K, VICTORIAS SECRET 1850, EXPRESS NEXT 1050
Frequent Contributor
Posts: 462
Registered: ‎08-08-2013
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Re: Loan Denied Sallie Mae 43k

Here was the exact wording in the letter i rec'd

 

Thank you for contacting us for a copy of the reasons your application was denied. After carefully considering your request for credit, we were unable to approve your loan application for the following reason(s):

Account payment history is too new to rate

Length of time accounts have been established

AMEX PRG NPSL, FIDELITY AMEX 30K, CITI DIAMOND PREFERRED 22K, AMEX DELTA SKYMIES GOLD 18K, CHASE SAPPHIRE PREFERRED 15K, CITI DOUBLE CASH 11.9K, BARCLAYCARD REWARDS MASTERCARD 10K, CHASE MARRIOTT PREMIER 5K, CAPITAL ONE SONY CARD 5K, CAPITAL ONE QUICKSILVER 3.5K, AMAZON STORECARD 6K, VICTORIAS SECRET 1850, EXPRESS NEXT 1050
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Registered: ‎06-09-2008
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Re: Loan Denied Sallie Mae 43k

If you have a number of new accounts, ideally I'd wait to age them to at least 1 year before you apply again.  I also suspect that part of the issue is the amount of money you're asking for, $43,000 is a lot to loan to a student with a thin credit file and no co-signer unless there is proof of substantial income.  I would work on increasing your AAoA (don't apply for new accounts), decreasing the amount you need to borrow (apply for scholarships, ensure that you've used federal loans as much as possible, maybe even research a cheaper school - like a community college - to start your studies), and increase your income if possible.

 

Private student loans are a very serious commitment and can be a terrible burden on your credit and financial future if things don't go according to plan.  Maybe this denial is a good opportunity to reconsider and find another path.

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Frequent Contributor
Posts: 438
Registered: ‎03-23-2013
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Re: Loan Denied Sallie Mae 43k


SCF wrote:

 

Private student loans are a very serious commitment and can be a terrible burden on your credit and financial future if things don't go according to plan.  Maybe this denial is a good opportunity to reconsider and find another path.


 

I couldn't agree more. When I read the original post I couldn't help but thinking that the denial might have been a blessing in disguise. 

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Posts: 4
Registered: ‎11-11-2007
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Re: Loan Denied Sallie Mae 43k

If you need a loan right away, try Discover Student Loans. They gave me the amount I requested with no cosigner with a lower interest than Sallie Mae a couple years back when I was applying.

 

I hate Sallie Mae. I remember they wanted 12%+ interest, so I never completed my application. I received automated phone calls from them once every few days for the next year reminding me to complete my application. Maybe I didn't complete my application because your interest rate was ridiculous? And many of these calls were early in the morning which woke me up because I was a late riser college student.

Equifax FICO from Score Watch 747 (as of 8/30/13)

Main card: Chase Sapphire Preferred $12k
Supplement: Chase Freedom $20k
Gas/Groceries/Drugstores: AMEX Blue Cash (grandfathered old version) $12k
Less active: Citi Forward $18k and BofA Better Balance $16k

Sock drawer: Paypal Extras Mastercard $10k (Applied for it when I was too stupid to realize how much the benefits sucked but don't want to close it because it's one of my oldest)
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