Got CitiFinancial Loan- What will it do to my score?

[Anonymous]

I tried and tried for four months to get a private student loan to pay off a large balance at my old school. I applied for Sallie Mae, Chase, Discover, Campus Door. All got denied because I don't have a co-signer. At the time I had scores in the low 600s. Found out that my reason for denial was two COs from Crap 1 back in 03'. GW four times and they won't delete. I also had high util at the time.The issue was that when I transferred schools I didnt know I had the balance until I requested my transcripts. Meanwhile my current school let me take courses so I kept building a bill there. Well it came to the point where I couldnt take any more classes until they received my transcripts because they couldnt process my financial aid until they got my transcript. Soooo I had two large balances that I had to take care of in order for me to continue school. So I got a loan through CitiFinancial which took care of both balances and allowed me to pay off a few tradelines but with an interest rate of 25.99%!!!!!. My current scores are around 620-640. The upside to this story is that I can stay in school! And I bought my util down from 78% to around 20%.  SOOOOO

Question #1. What will this do for my scores?

Question#2. Will my credit be good enough to get a private student loan to pay off this Citi loan?

Question#3. Is there any private student loan lender that will look past charge offs? They fall off next year.

Note.  I've thought about MyRichUncle. I know they will have higher interest but it has to be better than 25.99%. With the exception of the COs and one 30 day late I have no baddies. Over ten years of credit history. I think the util may boost my scores to somewhere near 700.

[Anonymous]

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goingplaces wrote:

Question #1. What will this do for my scores?

about -10 on eq for me, yours may differ

Question#2. Will my credit be good enough to get a private student loan to pay off this Citi loan?

mid 600's and cu may help you out

Question#3. Is there any private student loan lender that will look past charge offs? They fall off next year.

even cu's don't like to see unpaid bad debt, you may have to wait them out if they weren't paid.

[haulingthescoreup]

It does look like it might report as a CFL (consumer finance loan), which is a slight ding, but not the end of the world. I had one myself from Wells Fargo Financial for a surprise hop in my daughter's tuition.

[MattH]

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@haulingthescoreup wrote:
It does look like it might report as a CFL (consumer finance loan), which is a slight ding, but not the end of the world. I had one myself from Wells Fargo Financial for a surprise hop in my daughter's tuition.

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Shortly after buying our condo the A/C compressor needed replacement, and since we'd put most of our savings into the downpayment we had to finance it through Carrier, who works through Citifinancial, but it only cost me a small number of points. By the time the furnace needed replacement a few years later we had rebuilt our savings and paid cash for that. I don't think anybody with an otherwise clean record should worry overmuch about this.

Message Edited by MattH on 07-12-2008 02:10 PM

[granny031350]

and having just an unsecured personal loan is so much better than fighting the student loan people for the rest of your life.  Those loans are never ending. 

[Anonymous]

CFL loans might not do that small ding thing until they are PIF. The ding is small. The reason people get so upset over CFL is because they don't gain points like other installment loans. A new account ding will hit with an inq for the moment. Far less than the huge drop you had with high revolving UTL if that's what it was "revolving". Much better short term to remove the high UTL.

25% ouch. Work on paying that down.

Bringing that UTL down was worth it if you needed credit. You were probably paying high interest on that other debt anyway.

Once that CO falls off I'd transfer this debt away from Citi Financial ASAP.

In the mean time do your best to save and pay down debt. Good luck in school.

[Anonymous]

The CFL ding lasts as long as they are on your reports-

"CFL loans might not do that small ding thing until they are PIF."

[Red1Blue]

How much point drop are we talking with CFL? If one has multiple CFL's at different times is it a one time drop for CFL or drop for each instance of CFL?.

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Timothy wrote:

The CFL ding lasts as long as they are on your reports-

"CFL loans might not do that small ding thing until they are PIF."

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[haulingthescoreup]

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@Red1Blue wrote:

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@Anonymous wrote:

The CFL ding lasts as long as they are on your reports-

"CFL loans might not do that small ding thing until they are PIF."

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How much point drop are we talking with CFL? If one has multiple CFL's at different times is it a one time drop for CFL or drop for each instance of CFL?

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I don't know that anyone has been able to isolate it.

What I have seen is that the message seems to pop up as a negative on those who hardly have any other negatives, so I think it's a product of FICO barrel-scraping.

It might be similar to the dumb scoring factor that CU and local bank cards don't carry quite the weight of cards from national banks. Just to stir up a different anthill.

[Anonymous]

I think it's only a one  time ding-

The positive payment history OUTWEIGHS  the small CFL hit.

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concorduser wrote:

How much point drop are we talking with CFL? If one has multiple CFL's at different times is it a one time drop for CFL or drop for each instance of CFL?.

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Timothy wrote:

The CFL ding lasts as long as they are on your reports-

"CFL loans might not do that small ding thing until they are PIF."

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