topic Re: Does student loans effect approval and/or starting limits on credit card applications? in Credit Card Applications

Does student loans effect approval and/or starting limits on credit card applications?

Sexyblue — Thu, 11 Aug 2016 17:06:20 GMT

Does student loans effect approval and/or starting limits on credit card applications? And should I should app before they update when the balance with interest starts to report?

I have 40K subsidized loans that are deferred while currently in school none of the balances are reporting over the limits.

No other derogs on reports – waiting for only collection to fall off two remaining reports this month. Been in the garden since 2014. Income 85k – waiting for scores to update to post them.

Interested in getting these cards in about 6 months

Csp

Freedom Unlimited

CITI Prestige

Amex PRG

SPG

Ritz

NFCU

PENFED

Re: Does student loans effect approval and/or starting limits on credit card applications?

Aduke1122 — Thu, 11 Aug 2016 17:42:08 GMT

Yes they could affect your approvals if there are any lates or derogs associated with them with , the other way I believe they effect approvals amd SLs is DTI ratio .

Re: Does student loans effect approval and/or starting limits on credit card applications?

Aduke1122 — Thu, 11 Aug 2016 17:42:55 GMT

But **** I believe if you are deffered they don't count it against your DTI ratio . I'm not totally sure maybe someone else can chime in.

Re: Does student loans effect approval and/or starting limits on credit card applications?

Sexyblue — Thu, 11 Aug 2016 18:24:51 GMT

Thanks for the reponse. Dont have any other derogs other than the one mention that comming off. loans have no lates ever. Payment on the loans comes to $350.00 a month total once out of school.

Re: Does student loans effect approval and/or starting limits on credit card applications?

Aduke1122 — Thu, 11 Aug 2016 18:33:21 GMT

OK well I would assume that depending on your income , you will be just fine. What are your scores like ? Is the SL the only credit you have ?

Re: Does student loans effect approval and/or starting limits on credit card applications?

Aduke1122 — Thu, 11 Aug 2016 18:34:12 GMT

I would start with the Credit Unions and Chase first aa Chase has the 5/24 rule also .

Re: Does student loans effect approval and/or starting limits on credit card applications?

Sexyblue — Thu, 11 Aug 2016 19:17:21 GMT

I just checked payment is going to be 221.00 after school. Those are all the credit lines is all I have. I am waiting for the last two to drop the collection so I can get the updated scores. I did get a FAKE credit score from Equifax of 662. But I have redueced some balances however, they have yet to update.

Re: Does student loans effect approval and/or starting limits on credit card applications?

Sexyblue — Thu, 11 Aug 2016 19:19:50 GMT

I was thinking about getting increase on my current cards first. if they are soft pulls only. lol

Re: Does student loans effect approval and/or starting limits on credit card applications?

Aduke1122 — Thu, 11 Aug 2016 21:01:38 GMT

Most definitely get CLI on the ones you have first if you are due for them, it will help in deciding what your new SL with others will be .

Re: Does student loans effect approval and/or starting limits on credit card applications?

12njoy — Fri, 12 Aug 2016 00:21:31 GMT

I think it depends on the lender on whether they count deferred student loans into your DTI. I know firsthand that PNC Bank counts them I have 135k in student loan debt and have had no problems with any of the lenders in my sig block. I'm in a special plan which shows the full amount of the loans on my credit report but only shows a reported payment of $350 per month as opposed to the regular payment of $1,400.

Re: Does student loans effect approval and/or starting limits on credit card applications?

Aduke1122 — Fri, 12 Aug 2016 04:24:55 GMT

Holy mercy 12njoy that is alot of SLs .😊 good to knw that most lenders don't count the against you when deffered .

Re: Does student loans effect approval and/or starting limits on credit card applications?

Sexyblue — Fri, 12 Aug 2016 04:28:03 GMT

Thats what i saying to myself - gives me hope.

Re: Does student loans effect approval and/or starting limits on credit card applications?

12njoy — Fri, 12 Aug 2016 04:31:04 GMT

@Aduke1122 wrote:
Holy mercy 12njoy that is alot of SLs .😊 good to knw that most lenders don't count the against you when deffered .

And that's what six years of private education gets you

Re: Does student loans effect approval and/or starting limits on credit card applications?

Aduke1122 — Fri, 12 Aug 2016 05:01:30 GMT

I'm sure you got a degree and career well worth it though 😉

Re: Does student loans effect approval and/or starting limits on credit card applications?

Aduke1122 — Fri, 12 Aug 2016 05:02:00 GMT

It's just a shame how much it cost for us to get an education in this country 😕

Re: Does student loans effect approval and/or starting limits on credit card applications?

12njoy — Fri, 12 Aug 2016 05:19:12 GMT

@Aduke1122 wrote:
I'm sure you got a degree and career well worth it though 😉

If I knew what I know now back then, I would have went to public school

Re: Does student loans effect approval and/or starting limits on credit card applications?

12njoy — Fri, 12 Aug 2016 05:19:39 GMT

@Aduke1122 wrote:
It's just a shame how much it cost for us to get an education in this country 😕

It really is

Re: Does student loans effect approval and/or starting limits on credit card applications?

Anonymous — Mon, 15 Aug 2016 02:27:17 GMT

oooooooooo are we complaining about student loans? I'm not there yet but by the time I'm out in 5 years, I'll be 200k in debt. Woohoo America

Re: Does student loans effect approval and/or starting limits on credit card applications?

Anonymous — Tue, 16 Aug 2016 08:35:00 GMT

I agree with the poster, that wrote that it varies based upon the vendor....there are no laws or regs that say what financial 'risk' a vendor

'has to' take...if they are spooked by the 'possible'....oh well they can consider it.

Same thing, depending on where I worked some lenders required us to count DTI ratio 'AS IF' all available cards were maxed...even if the appliciant had zero balances

at the time of application...thought pattern being next month these could 'could be' the payments the applicant 'may' have to pay in ADDITION to out 'new' payment huh?

But conservative, close to the vest, watch 'our' bottom line, the financial 'health' of the institution types exist as a) entire departments and b) as individual UWers

Think 'bean counters' some are gonna be very tight as organizations other times it's luck of the draw per person....not trying to rain on the parade, just being honest of what goes on within certain banks/CUs....many times applicants did NOTHING wrong and would have been approved had their app ended up in his pile vs hers....just the way it is.

It pains me that so many ppl kill themselves 'guessing' at what was 'the problem' and had they done this vs that...when really it was their app landed with tight Teddy vs normal norman...nothing more.

All that to say be careful and know it's a crap shoot, as to if those 'possible' payments will be considered with regard to DTI...some places may ask for proof of the length of deferrement in order to not count a payment that 'might' be part of expenses within X amount of time etc

Best of Luck

Re: Does student loans effect approval and/or starting limits on credit card applications?

iced — Tue, 16 Aug 2016 21:13:30 GMT

@Sexyblue wrote:
Does student loans effect approval and/or starting limits on credit card applications? And should I should app before they update when the balance with interest starts to report?
I have 40K subsidized loans that are deferred while currently in school none of the balances are reporting over the limits.

No other derogs on reports – waiting for only collection to fall off two remaining reports this month. Been in the garden since 2014. Income 85k – waiting for scores to update to post them.

Interested in getting these cards in about 6 months
Csp
Freedom Unlimited
CITI Prestige
Amex PRG
SPG
Ritz
NFCU
PENFED

When in doubt, assume the worst but hope for the best. If the loans are showing up as an account on your credit reports, then assume they're being factored in like any other installment loan would into your DTI. If they end up not being factored, bonus on you.

What I don't know (but would be concerned about), is if anyone on their end notices you have income and a deferred loan and begins to wonder why you aren't paying said loan down if you seem able to otherwise. The automated systems (probably) don't care/notice but if you get to recon that may well come up.